While Bangladesh’s foreign exchange reserve continues to rise -- it went down to $19 billion but has now increased to $21bn -- we still have a long way to go before we can support a healthy, robust foreign reserve. Especially, with our forthcoming development ambitions requiring vast amounts of outlay, having a robust foreign reserve is non-negotiable.
Bangladesh has long relied on its RMG exports, a narrow strategy that brings with it massive risks. Many of our fears have been realized in recent years as increasing competition and slowing demand has resulted in lack of payments for the industry as a whole. As experts have been emphasizing for years, the only way out of this rut is for us to diversify our industries. While some work has been done in this regard, Bangladesh still needs to do a lot more, and one option can be to focus on our burgeoning electronics manufacturing industry.
Additionally, we need to embrace diversification in terms of destination countries for our migrant workers. We have long relied on the Middle East as a destination, but given that this restricts our bargaining powers and is an inefficient utilization of the skill bank our massive workforce is potentially capable of, we need to look for new markets for our migrant workers, especially in the West.
All in all, while it is encouraging that our reserves are on the rise again, we cannot rest on our laurels yet. We need to fine tune the overall economy to allow for more resilience and self-sufficiency. Regular talks have to be had with industry leaders to create a better business environment.
We have monumental ambitions for our future. Let’s make sure we put in the work.
