Nexus Between Foreign Remittances and Poverty Reduction: Empirical Evidence From Pakistan

Abstract

This study explored the effect of foreign remittances on the household poverty in case of Pakistan. The data has been taken from Pakistan social and living standard measurement (pslm) survey for the year of 2018-2019. In order to check the impact of foreign remittances towards household poverty probit regression has been utilized. Household poverty has been used as a binary variable having its two values poor and non-poor. While independent variables used in it are family size (hh size), foreign remittances (rem), number of employed persons in a household (no. of workers) and region rural/urban (area). The findings of probit regression revealed that family size (hh size) have its positive and significant impacts on household poverty while foreign remittances (rem), no. of employed persons in a household (no. of workers) and region rural/urban (area) have significant but negative impact on household poverty. At last findings purposed that there is a need to start such soft immigrations plans and policies with the consent of embassies of other countries through which people can easily get migrated. There is a need to create an awareness program through which every person can easily find employment opportunities according to their skills. There is a need to launch awareness programs about the negative impacts of high population among people. There is a dire need to take initiative for people of rural area to provide jobs. Establishing rural non-farm economy can be helpful. Keywords: Remittances, Poverty, Cross-Sectional Data