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A major contributor to Bangladesh's GDP, both macro and micro economy, foreign exchange reserve growth, and social and economic wellbeing, remittances have long been a pillar of the country's steady economic growth and resilience. Remittance or expatriate income is currently in the best position among the primary indicators of the nation's economy. After continuing to expand in August and September, the remittance flow is gaining significant traction in October as well, indicating not just the expatriate community's tenacity but also their restored faith in the economic security of their country.
Consequently, as political stability in Bangladesh draws nearer every day, expatriate income began to rise steadily. The country's expatriate income rose to 2.22 billion US dollars in August, in a year-on-year rise by 39 per cent. 2.40 billion US dollars were remitted by foreigners via the nation's legitimate procedures last September. The sum is 28 thousand 857 crores TK in local currency. Throughout the month, the nation got $80.2 million per day on average. In the past four years, this is the second-highest monthly inward remittances. According to Bangladesh Bank's weekly remittance flow statistics, which was made public on October 14, over the first 12 days of this month, foreign nationals living abroad sent almost $1 billion ($986.6m remittances) to the nation via banking channels.
The current rise is mostly ascribed to foreigners using official banking channels, which is excellent news for countries like Bangladesh since it indicates that Bangladeshi expatriate workers are now more confident in Bangladesh’s enhancing financial systems. With an emphasis on encouraging sustainable growth and legal remittance flows, financial institutions and organisational economic programs must seek to investigate ways to boost foreign earnings and persuade expatriates to use legal remittance channels, which would further boost the economy. Without a doubt, remittances from Bangladeshis employed abroad contribute significantly to the country's overall economy by generating a sizable amount of foreign exchange. Needless to add, the interim administration must continue to give top priority to programs that promote the growth of remittances.
Making it more feasible for remitters to return their money back to the nation through official channels and streamlining remittance transfer procedures are two examples of this. It is encouraging for Bangladesh's economic recovery and resilience that inbound remittances are continuing to rise. Incoming remittances can assist in addressing the economic difficulties and challenges the caretaker administration faces. However, this steady rise in remittances coincides with a pivotal moment in Bangladesh's economic history; the interim administration has been entrusted with managing a complicated environment, with economic difficulties ranking among the most pressing issues. The possibility of ongoing remittance inflows might offer Bangladesh a timely and much-needed buffer against the uncertainty brought on by the recent political upheaval.
The expansion of these inbound remittances has resulted in a steady increase in the accumulation or reserve quantity of foreign currency. Bangladesh's declining foreign exchange reserves and growing inflation are still problems. Remittances are a lifeline in this situation; in addition to giving numerous families in the nation the support they need, they also significantly contribute to strengthening foreign exchange reserves, which helps the country's already unstable economy. Remittances have a wide range of functions and significance, both directly and indirectly. The family receives a portion of the expatriate's earnings via the bank.
By raising their level of living, building infrastructure, promoting savings, and making investments in a variety of sectors, this money not only helps their families but also significantly contributes to the nation's economic growth. An essential component of South Asia’s 2nd largest economy’s economic mobility is remittances. Thus, one of the main drivers of the national economy is remittances. Bangladesh today has the market potential and trust for both local and foreign investors and firms to invest and do business in the country, thanks to its continuous stable foreign reserve and growing remittances.
The caretaker government and financial institutions must keep improving the banking channels available for remittance payments as the country's situation stabilizes. The government must therefore concentrate on promotion activities to increase inward remittances, encourage remitters through various stimulus measures, strengthen Bangladesh's international brand, highlight the skill development of migrant workers, locate and find new markets for exploring market potentials, and support more diplomatic efforts in nations where Bangladesh's migrant workers have significant potential. For this reason, continuous attempts to optimise these procedures are crucial to preserving and maybe growing remittance flows. However, in light of the recent Gen-Z revolution, remitters have a moral obligation to support economic stability.
Of course, it is crucial that Bangladesh looks after its expatriate workers, as has been said many times by many economists. The government must do a better job of protecting their rights once they are in these foreign markets and providing them with all the support they need, in addition to funding skill development programs for prospective migrant workers to increase the number of high-income expat workers who can land better-paying jobs abroad. Under the caretaker administration, Bangladesh is enduring a particularly difficult transitioning moment. It is impossible to overestimate the significance of sustained remittance growth at this point.
Countries like South Korea, Malaysia, Japan, some European countries, the Middle East, some developing African nations, have already shown a strong interest in increasing the number of Bangladeshis they can accept, and it is the government's responsibility to continue looking for new ways to achieve this goal. Many nations are in dire need of workers of all stripes.
One of Bangladesh's most important resources is its workforce, yet there is still much space for development. Since the majority of our foreign workers are now rather unskilled, it is imperative that they be upskilled. In the end, extending the reach of our migrant labour is beneficial for a nation that is quickly becoming a major player in the international arena. Bangladesh must, however, maintain the pace of the recent increase in inbound remittances.
The writer is the DG of the International Language Institute, Dhaka, Bangladesh.
Messenger/Disha
