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The natural approach is undertaken by all the researchers regarding critical literature review is to make a target oriented attempt to categorize all the existing writings in to different relevant groups or classifications that fall within our area of interest and to find out main pillars of our discussion to support our research gaps as a point of helping argument in our study. Identifying all the principal authors of different research works by "backtracking" from a well-known, recent contribution to the oldest contributions in the same area of work. Same is the case with the present study, where literature review of all relevant work has been rigorously attempted to find out research gaps or research questions.

There exist a large number of studies related to the estimates of government budgetary redistributive effects and its related problems with regard to different countries of the world.1 Studies of the impacts of government expenditures and taxes in Pakistan have been conducted within the framework of either incidence of taxes or the impact of expenditures across the income groups. The studies carried out by Azfar (1972); Jeetun (1978); Alauddin and Raza (1981) Malik and Saqib (1985, 1989) cover different aspects of taxation—tax incidence, progressivity or regressivity of the tax system across the income groups/individuals and regions. These studies did not discuss the expenditure side of the budget. Shirazi (1996) analysed the impact of government transfer programmes (Zakat and Ushr) across the income deciles. Ghaus (1989) studied the incidence of provincial and municipal government service-related expenditure benefits in Karachi metropolitan and therefore, the scope of her study was limited to one city only. Despite the existence of a rich bibliography on the subject of government redistrbutive budgetary effects and its related problems, no study is available which covers the overall redistributive impacts of government budgetary policy in Pakistan. This study explores the impacts of government expenditures and taxes on the distribution of income across various income groups along with net fiscal impacts in the urban-rural areas of Pakistan. The rest of our study is organised as follows. In the following section, Part II, we describe the methodology and data set. In Part III, the results of the study are presented. The Part IV concludes the paper.

This study endeavors to give a logical response to the vital economic issue of whether workers' remittances added to economic development in Pakistan amid the period 1980 to 2010. The quantitative evidence demonstrates that workers' remittances had all the earmarks of being a critical wellspring of economic development. It has been suggested for policy suggestion that Pakistan ought to empower and rouse the stream of workers' remittances and embrace such arrangements that demand remitter to mail cash through appropriate channel so that these streams can be used better for economic development and growth.