No doubt, today Pakistan’s economy is facing many problems regarding its economy. Poverty and inflation rates are showing a dark future for Pakistan. But hope is still there because of a resource like remittances. Pakistan is receiving about $2 billion remittance funds every month and reports are showing further improvements in the future. Pakistan is one of the developing countries of the world and it shows the importance of remittances for Pakistan.
WHY REMITTANCES ARE IMPORTANT FOR PAKISTAN?
Pakistan is facing a giant problem of foreign debts taken by various governments so far. The debt is increasing day by day. The primary role of remittances for Pakistan can be seen in servicing foreign payments. The flow of foreign currency in the economy shows the improving number of foreign reserves of the country. These foreign reserves help the state to service foreign payments and lighten the burden of foreign debt in future generations.
Additionally, remittances have a huge contribution to reducing poverty and unemployment in Pakistan. Foreign countries providing job opportunities to the unemployed Pakistanis reduce the unemployment rates in the country. By working in foreign countries, Pakistanis can bring a new skill set back to their home country. This can work as a fuel to the growth of economic development.