Dutch Disease and Remittances, Explained
A steady inflow of foreign currency can quietly make a country worse at exporting. The mechanism, the evidence on remittances, and how far it fits Pakistan.
Analysis of Pakistan’s economy — what moved, why it moved, and who it lands on.
A steady inflow of foreign currency can quietly make a country worse at exporting. The mechanism, the evidence on remittances, and how far it fits Pakistan.
Migrants send more to developing countries than investment and aid combined. Where the money goes, what it costs to move, and why the totals understate it.
Remittances supply dollars and support the rupee — but the causation runs both ways. Pakistan's FY26 shows how, and where the forecasts go wrong.
Sending money to one country can cost twenty times what it costs to another. The gap has nothing to do with distance, and everything to do with market structure.
A record $41.6 billion reached Pakistan in FY26. Where it comes from, what it does to the rupee and the current account, what it costs to send, and its limits.
Most foreign money leaves when a country gets into trouble. Remittances do the opposite — and the reasons are less sentimental, and more interesting, than they look.
The Pakistan economic conditions in 2018 were tumultuous. Political transition, external financial pressure and severe currency devaluation converged on a new government's first year.
What Pakistan's delegation can realistically achieve against the 29% US tariff — the leverage, the limits and the competitive position.
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