Abstract

Pakistan like other developing countries in the world is known for its high migration and workers’ remittance. Ingeneral it is considered that workers’ remittances are the important source for external finance and economicgrowth but many studies conducted on the same topic revealed some positive, negative and neutral responses ofworkers’ remittances toward economic growth. It is also argued that the high migration rate in any countryrepresents the poor economic conditions of that country. This study identifies the impact of workers’ remittanceson economic growth of Pakistan by analyzing time series data of twenty two years from 1991 to 2012.Regression model has been used to identify the relationship between the variables. The results conclude thatthere exist a significant positive relationship between workers’ remittances and economic growth in Pakistanand it has been recommended for policy implication that Pakistan should encourage and motivate the flow ofworkers’ remittances and adopt such policies that insist remitter to send money through proper channels so thatthese flows can be utilized in a better way for economic growth and development.

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