The country’s remittance inflow decreased to $8.02 billion in the first seven months of the current financial year 2013-2014 from $8.72 billion during the same period of the FY13 against the backdrop of downward manpower exports during the period. According to Bangladesh Bank data released on Monday, remittance inflow decreased by 8.09 per cent in the first seven months of the FY14 compared with that of a rise of 19.74 per cent in the same period of the FY13. The expatriate Bangladeshis sent greenback worth $7.28 billion in the first seven months of the FY12.
The latest BB monetary policy statement for January to June of 2014 said that the downward trend in manpower export was a pivotal cause of declining the inward remittance in the recent months.
The MPS said that the country’s manpower export had dropped by 36 per cent in the FY13 from that in the FY12.
Against the backdrop, BB governor Atiur Rahman at the MPS unveiling session on January 27 said the declining remittance due to fall in manpower exports was identified as a major risk of the external sector of the economy.
He advised the department concerned of the government to take proper steps to increase manpower exports.
According to Bureau of Manpower, Employment and Training data, 6,07,798 workers were employed overseas during 2012 but only 3,99,333 workers went abroad till December 22, 2013.
Lack of comprehensive policies, less export of skilled workers and political instability along with the shrinking manpower export caused the reduction of remittance inflow to Bangladesh, a BB official said.
Recruitment of Bangladeshi workers virtually stopped in Kuwait and United Arab Emirates while substantially reduced to Oman, Saudi Arabia and Malaysia over the years, he said.
He also said that Bangladeshi workers were earning low wages abroad due to global economic rescission and hence sending less remittance to the country.
The BB data showed that the inflow of remittances also dropped in
January year-on-year, decreasing by 5.79 per cent to $1.25 billion from $1.32 billion in the same month of the last year.
The private commercial banks received $832.21 million in inward remittances in January while the state-run commercial banks received $387.64 million, foreign commercial banks $14.27 million, and specialised banks got $15.91 million.
In January, Islami Bank Bangladesh received the highest amount of remittances — $333.52 million — among the private commercial banks, while Agrani Bank got the highest amount of remittances — $144.61 million — among the state-run banks.
Bangladesh Development bank, Rajshahi Krishi Unnayan Bank and National Bank of Pakistan failed to earn any inward remittance in January.
The new nine banks, which have recently obtained licences to operate the banking business, also failed to earn inward remittance in the period.
-With New Age input
