This paper highlights the increasing underreporting of remittances by the FIES compared to BSP and World Bank figures, advances possible reasons why such underreporting is occurring, and examines its implications for welfare measurement in the country at points in time and across time. Using simulation exercises, the paper finds that
indeed the „missing remittances? in the FIES could be causing the
mismeasurement of poverty and inequality since 1997, possibly
clouding the direction of welfare change.