AN ASSESSMENT OF THE VOLUME OF WORKERS REMITTANCES AND THEIR SOCIO-ECONOMIC IMPACT IN RECIPIENT REGIONS OF NORTH-WEST FRONTIER PROVINCE, PAKISTAN(A CASE STUDY OF DIR DISTRICT)

The main objective of the study was to analyze the impact of remittances (home as well as foreign) on the socio-economic development of the District Dir, NWFP. The study embraces three distinct but inter-related subjects, i) Migration situation, ii) volume and utilization pattern of migrant’s remittances and iii) investment behavior of these migrants. For this purpose a Sample survey was conducted in 12 villages in Upper Dir District, where 73 sample households were interviewed in October 2004. The findings of the study show that number of migrants is continuously rising, and the home remittances as well as foreign remittances are the main stay of the sample households. These remittances are productively utilized and have a positive impact on the sample households as well as on the sample villages as a whole. Increase in income level of beneficiaries has been quite significant over that obtaining in pre-migration period. Return migration is offset by outflow presently but it is a potential problem. The main hindrance in the way of the migrant is the huge initial expenses involved in migration process i.e. the purchase of visa, air ticket and work permit. For this purpose the migrants resort to private sources or sell out their fixed assets.As the migrants are contributing Rs. 2357 million per annum to the rural economy of the district Dir, the study recommends that formal credit institutions must allocate some funds for this purpose so that the intending migrants may not face finance problem. Moreover, the government must start some training programmes for the returned migrants so that they may start their own enterprises