Home ›› 23 Oct 2022 ›› Opinion
With the Ukraine-Russia war showing no signs to de-escalating, Bangladesh’s economy is in a perilous state. Though the per capita income here in Bangladesh crossed $ 2800, purchasing power capacity of people is witnessing a falling trend. The people, hit hard by the pandemic and the ongoing war, are now experiencing record inflation.
The people facing cost-push inflation are preferring spending money on essential goods to survive. Besides, Bangladesh is in great troubles with its current account deficit, high inflation, falling foreign exchange reserve among others. Bangladesh’s import payment is double that of export earnings. Export earning come in the form of US dollar.
Trade deficit in July-September, FY 21 was $ 2040 million. In July-September of FY 22, the figure stood $ 6503 indicating that forex reserve is on declining trend as a result of paying more import payments. Following decreasing trend of forex reserve, the government undertook a number of measures to lowering import payments. According to Bangladesh Bank, import payment hit a record high of $ 82.49 billion in FY 22. Now, the reserve stands below $ 36 billion which was $ 48 billion a year ago.
If the falling trend of foreign reserve continues, Bangladesh is expected to fall in great troubles in meeting import payments in the days to come. The ways out of the multifarious problems are to increase export earnings and foreign remittance sent by Bangladeshi expatriates.
There is no alternative of exporting manpower and goods and services in different countries considering current economic situation. Foreign Exchange Reserve in Bangladesh is mostly made up of export earnings and foreign remittance. Due to Ukraine-Russia war, the demand for Bangladeshi apparel goods is expected to fall. According to media reports, some European countries are not in the mood to buy apparel products because of the raging war in Europe. Bangladesh has to diversify exportable products soon and also must explore new markets for exporting. With a view to boosting forex reserve, the need for sending workforce abroad has become time befitting demand.
Close to two dozen countries in the world have demand for Bangladeshi labours as workforce. It is essential to know that around 60 per cent Bangladeshi expatriates go to the countries in gulf region as workers. The countries belonging to South East Asia have little demand for Bangladeshi workers. Malaysia, Singapore, Brunei are South East Asian countries. Saudi Arabia, UAE, Kuwait, Oman, Qatar fall in gulf region.
According to Bureau of Manpower Employment and Training (BMET) sources, as of September, 2022, a total of 1,45,08,900 people have gone to abroad for serving as migrant workers. As of the period stated earlier, total foreign remittance stood $ 270375 million- BMET source.
Of total migrant workers, around 35.72 per cent in Saudi Arabia, 17.13 per cent in UAE, 4.45 per cent in Kuwait, 11.80 per cent in Oman, 5.78 per cent in Qatar, 2.83 per cent in Bahrain, 1.85 per cent in Lebanon, 1.44 per cent in Jordan, 0.84 per cent in Libya, 0.08 per cent in Sudan, 7.32 per cent in Malaysia, 5.99 per cent in Singapore, 0.31 per cent in South Korea, 0.07 per cent in UK, 0.41 per cent in Italy, 0.02 per cent in Japan, 0.16 per cent in Egypt, 0.53 per cent in Brunei, 0.52 per cent in Mauritius, 0.52 per cent in Iraq, 1.62 per cent are staying in other countries.
It has been learned from media reports that the gulf countries’ plan to to replace 70 per cent of the foreign workers by its citizens by 2030. Besides, the Saudi authorities introduced the “Saudisation policy” which was drafted in 2016. Under the policy, the authorities introduced monthly fees for dependents of foreign workers. Besides, fees have been increased for ‘Iqamas’ or residency permits.
Saudi Arabia, where 36 per cent migrant workers of total Bangladeshi expatriates are employed, has been branded as torture cell by many workers returning from KSA. The female workers have faced some of the worst abuses perpetrated by their employers and other officials. The much-discussed ‘wage theft’ issue has become a common scenario in Saudi Arabia. In the face of gross sexual misconduct many female migrant workers repatriated to Bangladesh. In season and out of season, the Bangladeshi workers often face deportation situation on lame excuse made by Saudi authorities. During Coronavirus time, the decision came from the state level for deporting one million workers in Bangladesh. The process has not been stopped.
A Southeast Asian country, Malaysia is one of the biggest labour market for Bangladesh with employing 7.32 per cent workers of total labour force working abroad. There are many undocumented workers in different destination countries. The Malaysia government launched a program titled ‘Labour Recalibration Programme’. A voluntary return of migrant workers to their home countries was initiated under the programme. Then, around 26,821 undocumented Bangladeshi workers registered for return to Bangladesh with their belongings. With the aim of grilling illegal migrant workers working in Malaysia, the government launched a voluntary repatriation program styled “ Back for Good” ( B4G) Programme. During the drive, around 38,734 illegal Bangladeshi migrant workers were repatriated to home country.
Brunei Darussalam is another Southeast Asian country. According to BMET source, from 1976 to September, 2022 a total of 76,828 Bangladeshi workers have been engaged in different professions in that country. Brunei is supposed to take Bangladeshi people in future. Recently, Brunei Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah came in Bangladesh on a 3-day official visit. During his stay, four instruments were signed in the areas of energy, aviation, manpower recruitment and recognition of certificates for two countries’ seafarers.
Manpower recruitment issue came in the center of discussion during talks with the Sultan of Brunei. The visiting sultan gave green signal in regarding increasing Bangladeshi labours in Brunei. Brunei had better remove discriminatory rule on Bangladeshi migrant workers. Bangladeshi immigrant workers have to deposit $ 1600. The amount is only $ 500 for Malaysian workers.
Since Bangladesh economy is set to face forex reserve crisis for growing import costs, the country needs to export manpower in new markets right now. If new labour markets remain undiscovered, Bangladesh might face crisis in inflow of foreign remittance. Currently, stabilizing the existing labour markets is crucial side by side with searching new markets. With a view to stabilising existing labour markets, government to government initiatives are necessary. Ahead of LDC graduation, Bangladesh is to expand and stabilize labour markets abroad for greater interest of the economy which is now in ailing condition. In this moment, foreign remittance is the key sector for increasing the foreign exchange reserve.
The writer is an economic affairs analyst. He can be reached at mazadul1985@gmail.com
