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Impact of Workers' Remittances from the Middle East on Pakistan's Economy: Some Selected Issues

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  • RASHID AMJAD

    (ILOj ARTEP, Asian Development Programme, New Delhi (India).)

Abstract

Over the last decade, the phenomenon of overseas migration from Pakistan to the countries of the Middle East and North Africal has had a far reaching impact on the domestic economy. Indeed, no factor has more dramatically affected the domestic employment situation and the balance~f-payments position as the outflow of contract workers and inflow of workers' remittances from those countries. According to the Sixth Plan, as much as one-third of the increase in the labour force during the years 1978-83, i.e. the Fifth Plan period, was absorbed by migration to the Middle East [14, p. 499]. At its peak in 1982-83, official flow of remittances from the Middle-East was equivalent to 70 percent of the country's total exports of goods and non-factor services (Table 1). More recently, the slowing down in economic activity in the major labour-receiving countries together with increased competition from other labour-exporting countries has led to a decline in the outflow of migrant workers, and, with the quickening pace of return migration, there is a decline in the stock of Pakistani workers in these countries? This has put considerable pressure on the domestic employment situation. While remittances from the Middle East countries have also declined after reaching a peak in 1982-83, the absolute decline has not been substantial, although there is still considerable apprehension about the volume of the remittances in future years.

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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 25 (1986)
Issue (Month): 4 ()
Pages: 757-785

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Handle: RePEc:pid:journl:v:25:y:1986:i:4:p:757-785

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Cited by:
  1. Jacques Bouhga-Hagbe, 2006. "Altruism and Workers' Remittances," IMF Working Papers 06/130, International Monetary Fund.
  2. Naushin Mahmood, 2009. "Population and Development Demographic Research at PIDE," PIDE Books, Pakistan Institute of Development Economics, number 2009:1 edited by Rashid Amjad & Aurangzeb A. Hashmi.
  3. Zafar Iqbal & Abdus Sattar, 2005. "The Contribution of Workers’Remittances to Economic Growth in Pakistan," PIDE-Working Papers 2005:187, Pakistan Institute of Development Economics.
  4. Amjad, Rashid, 1989. "Economic impact of migration to the Middle East on the major Asian labour sending countries - an overview," MPRA Paper 38134, University Library of Munich, Germany.
  5. Amjad, Rashid, 2010. "Remittances and poverty in Pakistan: a note," MPRA Paper 38297, University Library of Munich, Germany.
  6. Shahbaz Nasir & Mahmood Khalid, 2004. "Saving-investment Behaviour in Pakistan: An Empirical Investigation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 665-682.
  7. Zafar Iqbal, 1993. "Institutional Variations in Saving Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1293-1311.
  8. Mohammad Irfan, 2011. "Remittances and Poverty Linkages in Pakistan: Evidence and Some Suggestions for Further Analysis," PIDE-Working Papers 2011:78, Pakistan Institute of Development Economics.
  9. Qayyum, Abdul & Javid, Muhammad & Arif, Umaima, 2008. "Impact of Remittances on Economic Growth and Poverty: Evidence from Pakistan," MPRA Paper 22941, University Library of Munich, Germany.
  10. Muhammad Irfan, 2010. "A Review of the Labour Market Research at PIDE 1957-2009," PIDE Books, Pakistan Institute of Development Economics, number 2010:1 edited by Rashid Amjad & Aurangzeb A. Hashmi.
  11. Sohail J. Malik & Naeem Sarwar, 1993. "Some Tests for Differences in Consumption Patterns: The Impact of Remittances Using Household Income and Expenditure Survey Data of Pakistan 1987-88," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 699-711.
  12. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.

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