Why exports matter more than remittances

The article emphasizes the importance of exports over remittances for Pakistan's economic growth. While both contribute to the current account deficit, exports directly and indirectly impact the economy through employment creation, while remittances are indirect and result in spending by receiving families. The article argues that increasing exports can lead to higher productivity, employment, and earnings, and is a more effective long-term growth strategy than promoting remittances.

The export-to-GDP ratio has declined significantly from 17.3% in 1992 to 10% in 2025 due to unwise economic policies, while remittances have risen almost consistently. Policymakers should prioritize exports to boost productivity and sustainable growth, rather than relying on remittances to fill balance-of-payments gaps.