By Md. Zillur Rahaman

Remittances have been buoyed since the ouster of dictator Sheikh Hasina and the formation of the interim government. A record amount of remittances are coming to the country every month. As a result, in October, an average of $80 million of remittances came to the country every day. The total remittance or expatriate income in the recently ended October month was at $2.39 billion. The second-highest revenue of the year came last month and saw 80 percent growth. Remittances sent by expatriates increased by 21.31 percent in October compared to the same period last year. However, compared to September, the flow of October decreased by 0.41 percent. Expats have sent more than $2 billion in remittances to the country since April except last July. According to the data of the central bank, remittances from July to October of the current financial year reached at $8.93 billion, which was at $6.87 billion in the same period of the last financial year. The highest expatriate income this year came in June, amounting to $2.54 billion. As a single month, it was the record of the highest amount of expatriate income in the country in the last three years. Earlier in July 2020, $2.59 billion came.

Remittances sent by expatriates are contributing significantly to the development of Bangladesh. The amount of foreign exchange remitted by expatriates is half of the country's total export earnings. Bangladesh Bank Reserve stood in a respectable position because of expatriates. Remittances and export earnings are the two main sources of foreign exchange for a developing country like Bangladesh. Remittances are basically the income earned through expatriate fighters. Remittances are said to be the lifeblood of the country's economy and the basis of development, the golden platform of dreams and one of the driving forces of the economy. The contribution of remittances to the development of the country is 12 percent of the total GDP and the position of Bangladesh is seventh in the world. But recently, the government has taken several precautionary measures due to the decline in the reserves and remittance flows of Bangladesh Bank. In this regard, economists have laid emphasis on exporting skilled manpower and identifying and solving existing problems of expatriates in order to collect more remittances. Because remittance money has created small entrepreneurs and the country's economy is in a strong state.

According to the data of Bangladesh Bank, the total expatriate income in the month of September was at $2.40 billion, last August the revenue came to $2.22 billion. But due to the dollar crisis, India's Adani Group, including Kafco, Chevron and BPC, owed more than $2.25 billion to several foreign companies during the previous government's tenure. Bangladesh Bank has paid off the debt by collecting dollars from interbanks in the last two months and still has $700 million of outstanding debt. Bangladesh Bank says that this debt will be paid soon without touching the reserves. Interbank dollar supply has increased due to anti-corruption measures as well as money laundering. Bangladesh Bank says, now the price of money is higher than the dollar. That is why people are less interested in dollars now. More interested in money. Taka now earns more interest than dollars, inflation has started to come down. Besides, the uncertainty has started to reduce in the import of useful products including oil, gas, fertilizers. After clearing all liabilities by December, the economy will return to a more positive trend.

A part of the money earned by the expatriate is sent to the family through the bank. This money not only meets the needs of their families, but also plays an important role in the economic development of the country by increasing their standard of living, developing infrastructure, stimulating savings and investing in various fields. Remittances serve as an important nucleus for our economic mobility. Remittances are therefore one of the driving forces of the national economy. The government's confidence and capacity for expatriate remittances has increased. Remittance is also playing an important role in solving the country's unemployment problem and employment. Moreover, as a result of the export of manpower, the daily needs and foodstuffs of a large number of people do not have to be procured locally. There are about 12.50 million Bangladeshis scattered in more than 150 countries around the world, who are playing a positive role in our economy overall.

This population export is considered as a sure investment in strengthening the base of our economy. Population export can be considered not only as a sure investment but also as a safe investment. As the population export has a direct role in increasing the remittance flow, the government has to play an active role in ensuring that the remuneration of the manpower working abroad is determined according to the work and skills. It should be remembered that if the government increases its diplomatic activity in increasing population exports, then the benefits of population exports and remittance flows will flow in the same direction as the positive sectors of our economy.

Due to the crackdown on illegal hundi, the collection of remittances in the country through legal channels has increased to a large extent. Legal remittance flows are higher than at any time in the past. Expats are much more aware now. They are interested in sending remittances through legal channels instead of illegal channels. Remittances through legitimate banking channels have not only increased, but also set new records. Agent banking, sub-branches of banks in remote areas have made remittances very easy. To further increase the remittance income, the government and Bangladesh Bank have taken various steps to prevent hundi but could not stop it completely.

In the overall socio-economic development of Bangladesh, the manpower export sector is gradually becoming an important factor. But the potential of this sector is still not fully exploited. Many are investing in unproductive sectors like buying land flats. As important as making money is, it is equally important to use that money in productive industries and ensure it. In addition to solving the problems of the manpower export sector in a planned manner and sending professional and skilled manpower abroad, if the money sent by them is properly used in the productive sector, this sector can change the economic picture of the country.

The number of expatriates is only increasing due to the large number of unskilled workers going abroad from Bangladesh through brokers. But labor-wise remittances are not increasing. Higher-skilled expatriate workers have been found to be employed in better-paying jobs and send more remittances than low-skilled workers in the long run. Studies have shown that unskilled workers remit much less than skilled workers. The quality of workers in Bangladesh is very low even in international standards. It has been observed that unskilled expatriates go abroad illegally and are subjected to various forms of fraud and they cannot legally send remittances despite their hard earned money. For this reason they do not choose Hundi to send remittances.

In July, the Sheikh Hasina-led government shut down internet services to quell protests demanding reform of quotas in government jobs, and remittance flows declined that month as expatriates were unable to send money. However, during the July-August student movement, there was a change in the campaign of not sending expatriate income through legal channels. Bankers say that many people are now sending expatriate income through banking channels in response to the campaign to send remittances through legal channels. Economists concerned say that the rising trend in remittance flows will create a breathing space in the economy and help ease the pressure on foreign exchange reserves.

Expatriates are standing besides the interim government by sending a record amount of remittances when the pressure of repaying the huge debt of the Sheikh Hasina government is increasing. As a result, after the fall of Sheikh Hasina's government, the amount of remittances coming through legal channels is increasing. Expatriates sent remittances worth $2.395 billion in October. The sector stakeholders say that remittance or expatriate income has been increasing continuously since the beginning of this year. Expatriates called for a boycott of remittances in July amid student protests. But since the fall of the Hasina government, the emigration income has increased faster than before. This strengthens the country's foreign exchange reserves. The amount of remittances that came in July, the first month of the financial year 2024-25, has increased continuously in the following months.

Remittances that a migrant worker transfers from abroad to his family or other persons in the country are considered diaspora income. Analysts say that the role of repatriation income in the economy of Bangladesh is very important. The money sent by expatriates is considered as one of the catalysts in the socio-economic development of the country. On the one hand, as the income of migrant workers strengthens the base of the macro economy, on the other hand, their remittances are also playing an important role in poverty alleviation, food security, child nutrition and education.

The writer is a, Banker and Columnist.