Role of Diaspora in the Economic Development of Pakistan: A Case Study of Pakistan Tehreek-e-Insaf Government

Abstract

This study analyses the important role of the Pakistani diaspora in Pakistan’s economic development, especially regarding remittances, investment, and the influence of government policies. The research is designed to look into the diaspora’s contribution along economic, social, and cultural dimensions and will take into account historical patterns of migration and current impacts. This study uses secondary data and is based on the dataset taken from World Development Indicators. Data for this research will be collected and analyzed from 2018, when the Pakistan Tehreek-e-Insaf first came to power until the end of their five years in power. It generates 60 monthly observations spread over a five-year period, giving adequate and robust data during that period. The econometric model ordinary least square (OLS) was developed for this study to examine the effects of foreign remittances, human capital, foreign direct investment (FDI), and government policies on the economic development of Pakistan. The descriptive statistics and correlation analyses is applied to analyse the relationships among the variables. The OLS model indicates that remittances during this era has decreased the GDP while FDI, Human capital investment and government policies have increased the economic development of Pakistan. Research has pointed out that efforts by the government in regard to remittances must needed some leverage and management. However, bureaucratic inefficiencies, political instability, and a trust deficit between the diaspora and local institutions are still considerable obstacles for maximum economic impact. The Pakistani diaspora plays a multifaceted role in the world, including cultural exchange and philanthropy. This analysis recommends enhanced policy Support for FDI, diaspora engagement and strengthening the channels of remittance.