LOWER oil revenue for countries in the Middle-East has led to lower remittance; which is the lifeline of Bangladesh economy. It decreased by 1.04 percent in the first seven months of the current fiscal compared with that in the same period of the FY15, according to reports carried by several media outlets.
As most of the Bangladeshi migrants are working in the petroleum-driven Middle-East countries; where the economy is nose-diving due to low petroleum prices in the global market, the country’s social fabrics might be affected severely back in Bangladesh. The RMG export earnings, while good, only benefit a segment of businesspeople while remittance inflows contribute to the country’s rural economy.
And now, when the powerhouse of our economy is in the trap that subsequently will push back the workers to the homeland, the government must execute realistic plans aiming at rehabilitating the unsung heroes.
According to Bangladesh Bank data, the remittance inflow figure was $8.63 billion in July-January this fiscal year against $8.73 billion in the corresponding period of the FY15, a matter to be concerned about indeed. The remittance inflows also decreased to $1.15 billion in January against $1.24 billion in the same month of the last financial year. The lower cost of petroleum products has hit the business of the Middle-East, resulting in squeezing of their spendings. Many Bangladeshi workers in the Middle-East countries are now being paid lower wages compared with the previous periods due to dull business.
Besides, the government has also failed to export human resources to new markets like Malaysia. A large number of rural people are now depending on remittances as they spend on health and education from the remittance inflows. Experts asked the government to take prompt action immediately expanding the new markets to export its human resources in a bid to boost up the inward remittance.
To deal with the situation, businesspeople have been asking the government to reduce fuel prices in the domestic market that could widen investment options. Despite the fact that fuel prices in international markets have decreased from $120 per barrel in 2013 to $30 in 2015, the Bangladesh government is yet to adjust the prices. Reducing fuel prices will reduce the cost of production, transportation and the prices of raw materials that will be helpful to create a congenial environment for investment. If the labour market situation continues, a good number of workers would be compelled to return to the homeland and will be added to the existing unemployed.
So the situation in the economic front is worrisome and the government is slow to appreciate that.
As most of the Bangladeshi migrants are working in the petroleum-driven Middle-East countries; where the economy is nose-diving due to low petroleum prices in the global market, the country’s social fabrics might be affected severely back in Bangladesh. The RMG export earnings, while good, only benefit a segment of businesspeople while remittance inflows contribute to the country’s rural economy.
And now, when the powerhouse of our economy is in the trap that subsequently will push back the workers to the homeland, the government must execute realistic plans aiming at rehabilitating the unsung heroes.
According to Bangladesh Bank data, the remittance inflow figure was $8.63 billion in July-January this fiscal year against $8.73 billion in the corresponding period of the FY15, a matter to be concerned about indeed. The remittance inflows also decreased to $1.15 billion in January against $1.24 billion in the same month of the last financial year. The lower cost of petroleum products has hit the business of the Middle-East, resulting in squeezing of their spendings. Many Bangladeshi workers in the Middle-East countries are now being paid lower wages compared with the previous periods due to dull business.
Besides, the government has also failed to export human resources to new markets like Malaysia. A large number of rural people are now depending on remittances as they spend on health and education from the remittance inflows. Experts asked the government to take prompt action immediately expanding the new markets to export its human resources in a bid to boost up the inward remittance.
To deal with the situation, businesspeople have been asking the government to reduce fuel prices in the domestic market that could widen investment options. Despite the fact that fuel prices in international markets have decreased from $120 per barrel in 2013 to $30 in 2015, the Bangladesh government is yet to adjust the prices. Reducing fuel prices will reduce the cost of production, transportation and the prices of raw materials that will be helpful to create a congenial environment for investment. If the labour market situation continues, a good number of workers would be compelled to return to the homeland and will be added to the existing unemployed.
So the situation in the economic front is worrisome and the government is slow to appreciate that.
