Impact of Remittances on Household Poverty in Pakistan

Abstract

This research explores the impact of remittances on household poverty in Pakistan. It assesses and contrasts poverty among households that receive remittances with those that do not. The study further evaluates the differential impact of remittances on poverty among recipient households. The empirical analysis was carried out by using the data from the Pakistan Social and Living Standards–Household Integrated Economic Survey (PSLM – HIES 2018-2019). A logistic regression model is employed to analyze the data. The marginal effects of the logit model suggest that a household receiving remittances is associated with a decrease in the probability of being poor. Additionally, an increase in remittance amounts is linked to a further decrease in the likelihood of poverty among recipient households. These findings offer crucial insights for policymakers and development economists, providing guidance on effectively achieving some targets of Sustainable Development Goal (SDG) 1, which aims to alleviate poverty through strategic interventions.