Abstract:
Purpose:
The main aim of the study is to examine the impact of Remittance on the banking sector of
Pakistan; the purpose of the study is to conclude that how Remittance acts as a vital component
in the progress of a bank in Pakistan. The remittance mechanisms which is used in the banks and
the policies which are implemented by the state bank of Pakistan are been discussed in this
report.
Methodology/sample:
The research is composed of secondary data in which the data has been gathered from the
various articles and websites like State bank of Pakistan official website, Research articles on
internet and books on internet, accessible researches by the researchers, Internet Websites,
Remittance initiative websites and SBP reports. Pakistan’s biggest banks like HBL, MCB, UBL
and Allied bank are selected to evaluate that how remittance is having an impact on their
success. There are few points highlighted as well that how remittance is impacting the economy
of Pakistan.
Findings:
The results of the analysis show that there is an impact of remittance on banks deposit earnings
per shares and have an impact with the 0.000 level of significance whereas return on asset and
return on equity has no impact as its level of significance is 0.560 which is greater 0.05 so it is
not considered useful.
Practical Implications:
This study helps the readers to identify the impact of workers’ Remittances on banking industry
in Pakistan. This study will also help readers to find how overseas workers’ remittance can
contribute to the growth of nation
