Remittance cushion

The most recent remittance statistics have been a godsend, particularly since that the economy is dealing with too many demands at once. The $3.1 billion in worker remittances received in August are essentially a lifeline that Pakistanis living abroad continue to contribute. It is encouraging that the Pakistani diaspora in Saudi Arabia alone accounted for about $737 million of the total. These corridors, along with those in the US, UK, and UAE, have created a stable buffer that protects the economy from sudden shocks. To create long-lasting economic strength, the state must cease viewing remittances as cheap money and instead use them as a “consumption cushion” to spur investment and development.