Remittances: hidden costs

This letter refers to the news report ‘Pakistan pushes ahead with economic plans amid global trade disruptions’ (April 16, 2025). The report notes that, among other things, a very small portion of foreign remittances (two-to-four per cent) have been invested in the industrial and service sectors. This is quite natural. It is unreasonable to accept an increase in investment and production in the country when productive and skilled manpower is migrating to other countries. This is the source of our remittances boom.

You cannot have both remittances and high production in the country by the same skilled manpower. The skilled labour force can work in only one place at a time. The best policy for the government would be to promote employment in the country. Investment and production will follow.

Abdul Majeed

Islamabad