In economics, the term remittance refers to the transfer of money, often by a foreign worker to an individual in their home country. The importance of remittances should never be ignored by a country as they provide employment opportunities, help in alleviating poverty, improve the standard of living, and raise the volume of foreign exchange reserves of the country.
The current Covid-19 pandemic has brought about a financial depression and has left economies crumbling – a situation that has left economists pondering hard over how they can manage to pull their economy out of a death trap ensued by global chaos and faltering systems. Amid such an ordeal, Pakistan has barely managed to get by, thanks to the initiation of a smart lockdown strategy and decreasing Covid-19 cases. However, the ailing economy still hangs at the edge of collapse and the middle and lower classes continue to suffer under enormous debt and high inflation.
The need of the hour in Pakistan is to promote the flow of remittances into the country by providing a sustainable plan and other incentives that persuade and encourage individuals to invest. Then, if these remittances are spent properly in the construction, agricultural and IT sector, the economy may steadily improve. It is essential for the government to focus on such alternatives which together can pave the way for prosperity, instead of trying to find a miracle.
Jhangir Shah Kakar
Balochistan
