Decline in remittance
As most of
our migrant workers belong to poor families in the rural areas, the decline of remittance inflow will surely have implications
on the rural economy and community
Latest statistics show that while the number of Bangladeshi workers working overseas is increasing there is a steady decline in the remittance flow. It is perhaps the first time in recent memory that Bangladesh has experienced a decline in remittances. There are several factors that can potentially account for the decline in remittances: the stock of Bangladeshi migrants abroad, earnings per migrant worker, their average propensity to save, and their average propensity to remit money home out of those savings. For the first time in recent memory, Bangladesh has experienced a decline in remittances in the first half of the fiscal year.
There are several factors that can potentially account for the decline in remittances: the stock of Bangladeshi migrants abroad, earnings per migrant worker, their average propensity to save, and their average propensity to remit money home out of those savings. The bonus and overtime payment have come down. Their per capita income has gone down while their living cost has gone up, which has cut their savings. It is also true that the concerned authorities have failed to convince their counterparts in different countries in many cases. The authorities have also failed to find any new destination for Bangladeshi job seekers in the global job markets.
The homeward remittance by our migrant workers is one of the major sources of earning foreign currencies which is crucial for economic development of the country. The country needs these foreign currencies to pay its import bills for importing various essential commodities including capital machineries, raw materials for industries and other materials necessary for development activities. As most of our migrant workers belong to poor families in the rural areas, the decline of remittance inflow will surely have implications on the rural economy and community.
So, there are reasons to fear that, the decline of remittance inflow may have an adverse effect on the overall economy. Bangladeshi workers employed abroad should be encouraged to send their earnings only through the formal channels. Higher exchange rate should be given by reducing the gap between inter-bank and market-based exchange rates, as a substantial part of remittances still come to the country through unofficial channels. State-owned commercial banks including a few private banks played a commendable role in channelling remittance of migrant Bangladeshi workers for quite some years.
As the country depends substantially on the remittance sent by its overseas workers, the importance of this sector demands a planned and well-researched approach, not the haphazard way the relevant agencies performed their duties in the past.
