This study analyzes the differential consumption patterns of foreign and domestic remittances
to migrant households in Pakistan using Working-Leser framework and propensity score
matching. Findings point to differing consumption behaviour across foreign and domestic
recipients. Foreign remittances are considered as fungible and spent in the same way as other
sources of income. In contrast, domestic remittances are considered a less permanent source
of income and are spent more on improving the households’ human capital.