Economist Critiques Pakistan's Reliance on Remittances and Exchange Rate Policy

Economist Atif Mian criticized Pakistan's economic strategy during a panel discussion at Harvard University. Mian stated that the country's dependence on remittances is "particularly dangerous" from a political economy standpoint. He argued that the policy of encouraging workers to send money abroad primarily benefits the elite. Mian also pointed out that Pakistan maintains an overvalued exchange rate, which hinders export growth.

Mian noted that remittances are close to 10 percent of GDP, nearly equal to exports. He argued that successful economic growth should lead to a decrease in the share of remittances, not an increase. His critique targets the structural policies regarding currency valuation and foreign exchange income in Pakistan.