Remittances go up in better economic conditions: study

A study published by the Asian Development Bank finds that Pakistani migrants tend to remit more when economic conditions are improving back home and when there is positive association between remittances and domestic economic activity. “This suggests that there is an opportunistic dimension to the remittance motives of Pakistani migrants. They remit money to take advantage of investment opportunities in times of economic upswings in their home country,” according to the study titled, “Understanding the Drivers of Remittances to Pakistan”, published this month. The results also show evidence of a negative association between domestic equities and remittance growth: a decline in Pakistan’s stock index leads to an increase in remittances. Migrants send more money home to compensate for the losses from the stock market.