FINANCIAL TRANSFERS AND FOOD SECURITY: THE PROTECTIVE ROLE OF EXTERNAL REMITTANCES IN PAKISTAN

Abstract

This study examines whether external remittances help reduce household food insecurity in Pakistan and how this effect varies across regions, remittance levels, and rural–urban settings. Using nationally representative PSLM 2019-20 data and a set of linear probability models, the results show that higher monthly international remittance inflows significantly lower the probability of household food insecurity. The effect is robust across alternative specifications and remains meaningful after controlling for demographic, regional, and labour market factors. The findings also reveal important heterogeneity. Remittances are more effective at moderate and higher transfer levels, indicating diminishing marginal benefits, and their protective strength varies across provinces. Rural households face higher baseline risk, but both rural and urban households benefit similarly from rising remittances. Overall, the evidence suggests that international remittances act as an important financial buffer, supporting household consumption stability and food security in Pakistan, particularly when transfers are substantial and sustained.

Keywords: External Remittances, Household Food Insecurity, Pakistan, Regional Heterogeneity, Rural–Urban Differences