Sustain the remittance inflow

According to a report published in this newspaper on Tuesday Bangladesh received inward remittance worth over $1,008.67 million in the first 15 days of September, amid the forex crisis in the country. Bankers said remittance inflow shows an upward trend as the remitters are encouraged by the depreciation of taka and they get more than Tk 108 per dollar.

The sector which has brought in the much needed foreign currency is the manpower export sector that saw a boom since last year as Bangladesh recovered faster than other nations from the Covid-19 pandemic. Countries which were main competitors in exporting manpower either put a cap on all manpower export due to health restrictions or were shunned by manpower importing countries. According to the Bureau of Manpower Employment and Training (BMET) data, Bangladesh exported 6,17,209 manpower last year, which was around four times higher than 2020. During the first six months (January-June) of this year, manpower export was 6,91,017.

Migrant workers, affectionately termed as ‘remittance warriors’ play a crucial role in the socioeconomic development of Bangladesh. Their hard labour in foreign shores contributes not only to their family expenses but also generate millions of dollars in revenue for Bangladesh.

For Bangladesh, remittance, a key source of external finance, plays a pivotal role in social uplift. Bangladesh is a favourite destination for cheap manpower in global labour market. In fact, worldwide immigration can craft considerable social welfare gains for migrants in countries from where the workers move and to where they resettle.

Workers’ remittance to Bangladesh now constitutes the single largest source of foreign exchange earnings and plays a critical role in the socio-economic development. Remittance has resulted in improved living standards of workers’ families and helped in improving the income distribution in favour of poorer and less skilled workers.

Manpower export has been a key foreign currency earner for this densely populated nation and Bangladesh has been sending workers overseas since the mid-1970s and the country’s robust foreign currency reserve is attributed to remittances by migrant workers.

It’s universally known that the Middle East is the largest destination for Bangladeshi workers, playing a laudable role in the mammoth infrastructural development of gulf nations. Bangladeshi workers continue to be in high demand although there is a glass ceiling, which blocks professionals from going overseas to work.

In the past, developed gulf nations referred to the skill level of workers from India, Sri Lanka and other countries to justify taking white collars from them but now Bangladesh offers highly capable, tech savvy university graduates who are fluid in communication and IT. The market for white collar job, from teachers to communication experts to engineers should be open for competition.

Since all economies in the world are facing the brunt of the Ukraine War, saving money will the priority of all nations, developed and developing alike. Taking professionals from Bangladesh will reduce cost on one hand and, on the other, open a new dimension to the manpower exporting/import engagement. The process can be a fair one with permission given to nationals from other competing countries to showcase their skills and be selected through a fair process.

Bangladesh is at a crucial stage on its path towards development, and a healthy remittance stream will, no doubt, play a major part in helping us reach our economic goals. A change in policy is needed to tap remittance that hinges on more than just sending money for family maintenance, particularly from the Bangladeshi diaspora.

In a time of financial volatility, remittance from workers abroad is proving to be the lifeline. Since economists have given a bleak picture of the future, with warnings of a recession in developed nations, the priority of the Bangladesh government will be to explore new countries in need of skilled workers.