Wednesday, June 19, 2024


Dhaka Tribune

Remittance remains a cornerstone for the economy

Remittance is a vital component of Bangladesh's economic strategy

Update : 04 Jul 2023, 02:15 AM

It is very encouraging to see that Bangladesh's inward remittances through banking channels reached a 35-month high of $2.2 billion in June this year.

Bangladesh has set extremely ambitious economic goals to transform itself into a high-income country and reduce poverty levels; in this pursuit, the significant role of remittance cannot be understated. 

As one of the largest remittance-receiving countries in the world, Bangladesh must continue to do what it can to encourage the inflow of funds sent by its diaspora. Remittance has for decades been a powerful driver of economic growth, social development, and poverty alleviation, and the following two decades will continue to be vital. 

The substantial inflow of foreign currency enhances foreign exchange reserves, an area where Bangladesh is currently facing some challenges. These reserves offer a safety net against external shocks, ensuring stability in times of economic downturns.

Remittance has had a profound impact on human capital development in Bangladesh; the financial support provided by remittance enables families to invest in education and skill development, leading to an educated and skilled workforce. As a result, the country benefits from a more productive labour force.

However, all of the above benefits are for naught if we cannot treat our expats properly and ensure their safety and well-being. To that end, it is important for the authorities concerned to prioritize this - and have more serious conversations with host nations where many expat workers face terrible conditions to work in. 

Remittance is a vital component of Bangladesh's economic strategy, serving as a catalyst for economic growth, poverty reduction, investment, and human capital development. We must fully harness the potential of remittance in the next two decades to ensure we reach our economic goals and become Smart Bangladesh.

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