Pakistan’s Army of Overseas Workers Keeps Economy From Collapse

[diwana]

Re: Pakistan’s Army of Overseas Workers Keeps Economy From Collapse

@Captain1

Its between the sender and the family, they can use for lavish spending, healthy eating or simply putting sufficient amount of food in their plates… lets not whine about that, unless the money is used for buying ammunitions.

And who is “importing”? Its the local businesses. Whether the money is being sent from abroad or not people still buy “imported” items, there is no lack of rich class who wants to buy imported merchandise from imported underwear to imported cars. Importing money helps in keeping sufficient dollars in national exchequer to make payments.

First I said ‘some of this money’…

Then I gave you few crude examples.

Then I said it can have a catch 22 effects.

There is no denial that remittance from overseas workers has for the most part a good effect on recipient country’s economy. (Short term benefit)

But, there are negative impacts also. And moreover, on the long run it has more negative effects on countries like Pakistan.

Negative effects on children education especially if these workers are from largely under-educated areas. That depends if parents are themselves educated.

Negative social effects on children and family with absence of father. (Typical scenario)

Children may get in to bad company or drugs.

WorkingPaper-66.pdf

Negative effect if the political situation and Govt. is not planning well the influx of remittance. (Poor planning) ( Negative impact on Macro-economic performance)

WorkingPaper-66.pdf

Negative Effect of Remittances

Not to mention the “brain drain” and its ill effects of losing skilled or medium skilled workers and resulting in substandard workers to fill the gap. (Long term ill effect)

With global economy fluctuation the overseas employment also fluctuates and hence it is never a permanent solution.

Those who get used to higher salaries do not usually come back to recipient country and either keep moving or try to get settled somewhere else.

@Med911

Who builds the houses? Does Pakistan not benefit through the real estate industry? Or is Baharia town of no beneift what so ever? How many people are employed during the construction of one large home? Does the concrete and marble that we find in many of these homes come from abroad?
When they have lavish weddings, is the food imported? Are the maddeningly extravagant bridal garments imported? I mean, they do contribute something.

The power supply situation is one thing, but the same people adding to the power demand, also end up contributing through greater purchasing power. A large grocery chain for example or large mall employs god knows how many people, but not one of those people would have a job if there weren’t people with the capacity to purchase.

Think about large schools and universities, how many of their students depend on money from abroad.

The money from abroad filters into multiple tiers of society.

Interestingly I answered above the negative effects on children education in Pakistan in one of above article.

Those kids do not go to Pakistani schools, they go abroad (with money earned abroad) and then may even stay there.
**
Third world countries with inept Govt. and poor planning relying on overseas workers do not really make their condition any better.**
Debts still pile up.

Hence, relying on foreign remittance has a catch 22 effect.