European Conference on Modern South Asian Studies: Bonn 2010
European Conference on Modern South Asian Studies: Bonn 2010
European Conference on Modern South Asian Studies: Bonn 2010
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Migrati<strong>on</strong> Remittances and Development in Pakistan in 21 st Century<br />
4. Qazi Muhammad Tousif Akhtar<br />
Chairman Department of Ec<strong>on</strong>omics<br />
University of Baluchistan, Quetta<br />
Email: qmtousif@gmail.com<br />
Email:qmtousif@yahoo.com<br />
Abstract: World Bank simulati<strong>on</strong> indicates that an increase in the share of<br />
remittances in a country’s GDP by <strong>on</strong>e tenth would result in a 1.6% reducti<strong>on</strong> in<br />
poverty. Todaro 2 interprets relati<strong>on</strong>ship between migrati<strong>on</strong>, remittances and<br />
development: through migrati<strong>on</strong>, additi<strong>on</strong>al funds can be secured for the individual<br />
household. Evidence from Pakistan supports this relati<strong>on</strong>ship; that remittances are critical<br />
for meeting the basic needs of household e-g food, housing, health and<br />
educati<strong>on</strong>. Remittances define financing in private c<strong>on</strong>sumpti<strong>on</strong> and shape the labour<br />
supply and educati<strong>on</strong> decisi<strong>on</strong>s of household.<br />
Remittance flows are not <strong>on</strong>ly the sec<strong>on</strong>d-largest source of external funding for<br />
Pakistan behind foreign direct investment (FDI) they are also more stable than private<br />
capital flows. Transnati<strong>on</strong>al migrati<strong>on</strong> from Pakistan fetches huge foreign exchange as<br />
remittances; e-g remittances to Pakistan c<strong>on</strong>tinued to grow steadily (from $1.075 to<br />
$6.100 billi<strong>on</strong>) in 2000 to 2007. The study addresses the following questi<strong>on</strong>s:<br />
1. How remittance channels can be made more accessible<br />
2. How remittances can be made more "development friendly"<br />
Key words: Migrati<strong>on</strong> - Remittances - Development - poverty<br />
2 Todaro and Smith, (1995), “Ec<strong>on</strong>omic Development”, tenth editi<strong>on</strong>, Florida, Pears<strong>on</strong>