Abstract

This paper considers the intrinsic relationship between remittances, political stability, and economic conditions in Pakistan, with special emphasis on the dual role of remittances as an instrument of economic support and as a possible obstacle to political accountability. Remittances have contributed importantly to household income and national GDP, as witnessed from the centrality of overseas earnings by families in rural communities. This dependence can, however, inadvertently undermine the social contract between citizens and the government and reduce political activity among recipients. The paper uses case studies from different regions of Pakistan to highlight the importance of a contextual understanding of the relationship between remittance flows and political dynamics. In its argument, it shows that despite remittances being instrumental in reducing poverty and encouraging local entrepreneurship, these very advantages are contingent on the broader political context. It is called for comprehensive governance reforms, improvement in quality of institutions, and well-directed investments in education and local entrepreneurship if remittances are to be harnessed toward attainable sustainable development. Alignment of the economic strategy with political reforms will enable Pakistan to obtain maximum positive impacts from remittances and assure resilience and engaged citizenry—thereby laying a real foundation for economic and social transformation.