Pakistanis Work Abroad So Elites Can Live Better in DHA: Atif Mian

Renowned economist Atif Mian has remarked Pakistan's policy of sending its workers abroad is built to bring home foreign currency so that the elite can "live off DHA better, " and that this thinking has to change.

Key points

• Mian has long cautioned concerning the economy's structural challenges, earlier saying that Pakistan needs 5 percent annual expansion to recover 50 years' worth of its economy.
• Mian remarked Pakistan's dependence on remittances is "particularly dangerous" from a political economy point of view.
• They will send back funds, and so we can live off DHA better as of that.
• A solid rupee gives them more purchasing power for foreign trips and imported goods.
• Obtain the latest business news, market insights, and economic updates wherever you prefer.

Notably, the Princeton University professor created the remarks during a panel discussion at the Pakistan Conference at Harvard University, where he shared the stage with Finance Minister Muhammad Aurangzeb, former State Bank of Pakistan Governor Reza Baqir, and Nobel laureate Daron Acemoglu.

In practice, a clip of his comments, which he shared on X, is now going viral. Gold Loses Rs. 20, 000. Remittances Are a Danger, Not a Win.

Mian remarked Pakistan's dependence on remittances is "particularly dangerous" from a political economy point of view. While remittances are close to 10 percent of GDP, he observed that the country's exports and remittances are now almost equal.

"And we celebrate it. I have seen policy papers saying our goal is to growth remittances even further, " he stated.

Since residents want to live in their own country rather than run away from it, he argued that when a country grows properly, remittances go down as a share of the economy, not up.

"That incentive is structural. They will send back funds, and so we can live off DHA better as of that. That thinking has to change, " he continued, drawing applause from the audience. Elites Benefit From a Solid Rupee.

Mian remarked this is additionally why Pakistan struggles to boost exports. According to him, the country keeps its exchange rate overvalued. It effectively taxes exporters, since the elite earn their capital from non-tradable sectors such as land. US Wants More Influence Over Pakistan: Rubio.

Notably, a solid rupee gives them more purchasing power for foreign trips and imported goods. He remarked Pakistan needs to change these incentives, like China did, so that the elite benefit from expanding export capacity instead.

In practice, the country's subdued export base has additionally kept the trade deficit under pressure. Stay Connected with ProPakistani.

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For now, pakistanis Work Abroad So Elites Can Live Better in DHA: Atif Mian remains the part of the story worth watching, and further updates are likely as more details are confirmed.