When export is a priority

In the current global economic scenario, ravaged by the pandemic and the ongoing war in Europe, the future sustainability of occupational and economic activities has become uncertain. Many pertinent observers believe that the world is going to see a decline in the inflow of remittances into various countries. Bangladesh may suffer the most since its economy is heavily dependent on remittance earning.

Against this backdrop, Prime Minister Sheikh Hasina on Sunday stated that Bangladesh will no longer depend on remittance alone and it needs to increase production alongside diversifying the goods to increase its export basket and explore new markets. She made the comments while addressing the first meeting of the National Skills Development Authority (NSDA) at the Prime Minister’s Office.

The prime minister said, “We will no longer depend on the remittance. We have to increase our production alongside diversifying the goods to increase export basket and for which we have to explore new markets abroad”. Sheikh Hasina also stressed the need for making investments abroad. “We will not only attract foreign investment but also make investment abroad,”

She said her government is working to build the young generation as a skilled workforce so they can cope with the technological advancement ahead of the Fourth Industrial Revolution.

Bangladesh ranks 9th among remittance earners in the world. Nearly 10 million Bangladeshi migrant workers are now working abroad, especially in countries such as Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, Bahrain, the USA, the UK, Italy, Malaysia and Singapore. However, the golden opportunities that Bangladesh has been receiving through remittances have become uncertain due to the fallout of the current global economic crisis. Remittance inflow may drop alarmingly in the coming days.

The authorities concerned should understand the reasons why remittance inflow to Bangladesh may decline markedly shortly to take the necessary steps required to combat the situation. While the pandemic situation has eased is not over. Earning has been diminishing for a large number of undocumented Bangladeshi migrant workers. And even documented workers are still getting only partial wages.

Many countries in the Middle East have deported thousands of migrant workers as they are now prioritising their local labour force. There is a decrease in the demand for jobs in oil-rich countries where most Bangladeshi migrant workers have long been working. A good number of expatriates have already returned home during the height of the pandemic and it is feared that many of them may not go back.

Bangladesh’s falling forex reserve is a cause for serious concern. While we do not want to ring alarm bells at the moment, we do urge the authorities to take up precautionary measures to protect the reserves. Relying too much on remittance from migrant workers would not be a prudent move as the prime minister pointed out.

There should be initiatives to achieve a leapfrog in export earnings. And for that to happen export product diversification is essential. Bangladesh has been for years mainly dependent on the RMG sector for its export earnings. Leather and footwear, pharmaceuticals, ceramics, IT and software, jute goods, light engineering products, assembling industry, handicrafts, frozen foods, agro-based items and a few more products have the potential to boost forex earning. We have to comprehend why the government's thrust sectors have not flourished up to the expected level and what kind of support the entrepreneurs operating in these sectors need.

Under certain conditions, Bangladeshi exporters are now allowed to invest as much as 25 per cent of their net wealth abroad. Bangladeshi companies investing abroad create a culture of reciprocity where foreign direct investment in Bangladesh increases as well.

To reap the demographic dividend Bangladesh needs to go for long-term planning. The country has to develop the skill sets of the vast youth population. The youth has to be imbued with entrepreneurial zeal. Entrepreneurs can come up with innovative ideas and create job opportunities for millions of others. This notion is backed up by the government as stated by the prime minister.