Bangladeshis primary purpose of working abroad is to send money to Bangladesh to support the family. Bangladesh has experienced frequent and massive labor migration to other countries since the 1980s, and it is still one of Asia’s most remittance-receiving countries. Remittances, like overseas jobs, have been growing year after year as their share of GDP and export earnings has risen, making them essential elements for Bangladesh’s economic development. We discovered that inflows of international remittances and overseas jobs have a significant relationship in this research.
According to our study, unskilled labor, a lack of government initiatives to explore new overseas labor markets, and employees’ unwillingness to use legal channels to send money are all factors that limit remittance inflows to Bangladesh. In this context, we believe that adequate preparation, public knowledge, and government involvement would be sufficient to ensure foreign remittance inflows.
How Remittance Help Out Level Up Of Country’s Positive Image And Economy?
In Bangladesh, the remittance sector contributes to poverty alleviation, improved living standards, and the development of productive assets. Within the South Asian zone, the country is the third-largest recipient of remittances. Bangladesh earned $213,178 million in international money transfer to Bangladesh from 1976 to February 2020, according to the Bureau of Manpower, Jobs, and Training (BMET). Over the last few years, 13,028,410 expatriates have moved abroad for work, but many have returned.
How Much Time Will It Take To Recover Loss Of Remittance Due To Pandemic?
Based on both the IMF’s projections of global GDP reduction and the WTO’s recommendations for three recovery periods, the estimated loss of online money transfer to Bangladesh as a result of the Covid-19 outbreak may be more than $ 3-5 billion in 2020 and 2021, with the loss potentially rising if the economy takes six months or longer to recover. The loss will be between 16 and 24 percent of Bangladesh’s projected remittance earnings in 2020 and 2021.
Since remittances are so crucial to Bangladesh’s socioeconomic development, maintaining its balance of payments, and strengthening foreign currency reserves, any reduction in remittance inflows as a result of Covid-19’s breakout could jeopardize the country’s economic progress and poverty eradication. In light of this, the government must take all necessary immediate and long-term steps to mitigate the adverse effects on remittance inflows and ensure a steady future flow of remittance earnings, i.e. expatriates send money to Bangladesh online to ensure quick and secure transactions.