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Pakistan over the years, since its independence in 1947, had a
rather erratic growth profile but on average GDP growth rate hovered
around 5 percent per annum with per capita income growth ranging between
2 to 3 percent. The structure of the economy graduated from being
predominantly agriculture in 1950s to being service sector orientated
since the turn of the century. The manufacturing sector grew from almost
insignificance in 1947 to a reasonable level accounting for around one
third of the GDP. The demographic inertia associated with unchecked
population growth and emergence of job opportunities in urban areas led
to massive rural to urban migration, which resulted in a rather high
level of urbanisation. Concomitant changes in both the urban and rural
labour markets are visible too. Not only did average years of schooling
of the labour force rise but also changes in occupational classification
suggest a relative rise

ABSTRACTWe show that the impact of global financial crisis (GFC) on Pakistan's economy mainly transmitted through Gulf Financial Crisis (GCC). In this regard, we assess the effects of both the global and Gulf financial crises on remittances, workers' emigration, return migration, national savings and foreign investment. Applying Exploratory Data Analysis (EDA) before (2000–07) and after GFC (2008–18), we demonstrate that Pakistan witnessed remarkably low FDI inflows and labour force emigration along with higher return migration rates after the crises. Investment from the UAE and other Gulf countries declined eightfold immediate after the global financial crisis, contributing considerably to the decline of the country's GDP growth during 2008–10. There was significant curtailment in emigration volumes and spurts in return migration after 2012, because of the Gulf oil price crisis. The positive trend in remittances until 2015 seems to be influenced by post‐9/11 anti‐money laundering legislation and depreciation of the rupee.

This paper investigates the impact of remittance inflows on
economic growth and poverty reduction for seven African countries using
annual data from 1992-2010. By using the depth of hunger as a proxy for
poverty in a Simultaneous Equation Model (SEM), we find that remittances
have statistically significant growth enhancing and poverty reducing
impact. Drawing on our estimates, we conclude that financial development
level significantly increases the remittances inflows and strengthens
poverty alleviating impact of remittances. Results of our study further
show a signficant interactive imapct of remittances and finacial
develpment on economic growth, suggesting the substitutability between
remittance inflows and financial development. We further find that 3
percentage point increase in credit provision to the private sector
(financial development) can help eliminate the severe depth of hunger in
the region. Remittances, serving an alternative source of private
credit, can be effective in this regard. Keywords: Remittance Inflow,
Poverty Alleviation, Financial Development, Simultaneous Equation
Model