This Study Investigates The Impact Of Foreign Remittances On Healthcare Expenditure In Pakistan, While Using Pakistan Standard Living Measurement (Pslm) 2011-12 Household Survey Data From Pakistan. Healthcare Expenditure Of A Household Is Classified Into Two Broad Categories; Expenditure On Clinical Services And Expenditure On Medicines. Henceforth, Analysis Has Been Undertaken For These Two Sub-groups Of Expenditure Categories For Urban And Rural Areas Of The Country. Selection Bias Usually Confound Causal Relation In Such Circumstances, Therefore, Propensity Score Matching (Psm) Technique Is Implied. Our Results Show That Remittance-receiving Households Spend More On Medicine And Clinical Services Than Non-receiving Households Do. The Evidence Holds Both In Case Of Rural And Urban Areas For Both Sub-groups Of Expenditure. It Is Further Shown That Expenditure On Clinical Services Is Higher Than Expenditure On Medicine. Supervisor:- Dr. Muhammad Jehangir Khan