MEDIA report said that despite remarkable remittance inflows in previous years, it plummeted about 29 percent year-on-year to $1 billion in July this year. Low oil price in Middle East countries which hosted majority of Bangladesh’s migrant workers, has slowed the flow that might put an adverse impact on the growth of the country’s gross domestic product and balance of payments. Although Bangladesh continues to be among the top 10 remittance receiving countries over the years, the country has now fall back one notch down from last year’s, adding to worries at all levels. Sent by more than 8 million migrant workers, remittance plays a key role in reducing poverty in the country as well as maintaining healthy balance of payments account. We fear the slowdown this time it may pose serious threat to the national economy.
Report said that July’s receipt is the lowest monthly remittance inflow in at least four years as against $1.4 billion in remittance in July last year. Remittance inflow from the Middle Eastern countries declined 5.17 percent year-on-year to $8.55 billion in fiscal 2015-16. About 68 percent of Bangladeshi migrant workers reside in the Gulf countries, which have been hit by the slump in oil prices. In Bangladesh, the fall in remittances stems from a combination of factors, including fewer migrants finding jobs in the Gulf countries, more migrants returning home due to unemployment and deportations; besides appreciation of the Taka against the dollar. It appears that the decline is accompanied by a large number of returning migrants as they face complexity to stay abroad. The economies of Arab countries, which are our main manpower export destinations, are now facing crisis due to a drastic fall of petroleum prices in the international market. Besides, an anti-immigration sentiment is building up in Europe, forcing Bangladeshi nationals to leave the countries. It is very upsetting that the government has apparently failed to export manpower to new markets like Malaysia, which has impacted remittances negatively. Expatriates are facing risk to send money through banks of home country due to fear of fund heist. Besides, recent militant attack has forced them not to send money through banking transactions.
In fact, the remittance drop can also be attributed government’s failure to reopen labour markets in Saudi Arabia, the United Arab Emirates and Kuwait. Our diplomatic efforts failed to send migrant workers on these countries. Experts said improving migrants’ skills is also essential as the remittances basically depended on it. It has a negative impact upon the remittance flows of the country. In our view, the government should take prompt action to expand export of manpower in new market in a bid to increase inward remittances. Meanwhile, Bangladesh should avail the opportunities offered by a number of Middle Eastern countries and other to have illegal workers legalized, which will not only give the remittance flows a much-needed boost but will again open the doors to the countries for Bangladeshi workers.
