Maintain remittance flow to protect our economy

Remittance-the money sent home by migrant workers-has long been one of the most critical pillars of the Bangladeshi economy. It sustains millions of families, contributes to national foreign exchange reserves, eases pressure on the current account balance, and serves as a vital source of poverty alleviation. However, in the face of growing global instability, domestic challenges, and image-threatening incidents abroad, the need to ensure a sustainable and increasing flow of remittances has become more urgent than ever.

The economic landscape of Bangladesh saw a renewed dependence on remittance after 5 August 2024, following a series of destabilizing factors, including vulnerable domestic political environment, global inflation, shrinking export margins due to trade challenges with Western and regional markets, and domestic currency depreciation. The interim government, under pressure from an economic slowdown and fiscal constraints, introduced a new incentive scheme raising the cash incentive on remittance transfers from 2.5% to 5%, resulting in a marked rise in formal remittance flows.

Remittance inflows crossed the $30 billion mark on Saturday, two days before end of the fiscal year, making it the highest receipts yet in Bangladesh's history. According to Bangladesh Bank, monthly remittance inflow following the policy shift hit a record $2.21 billion in August 2024, up from $1.97 billion in July-an 11.68% increase in one month. By December 2024, cumulative remittance for the fiscal year reached $24.9 billion, up from $21.6 billion the previous year, a growth of over 15%. Remittance contributes about 6.5% to Bangladesh's GDP and, during external shocks like the COVID-19 pandemic, oil price surges, or the political shift on 5 August 2024, has served as a cushion. After global supply chain and investment disruptions due to conflicts in Eastern Europe and the Middle East, remittance emerged as the most reliable external performer.

The demand for Bangladeshi workers abroad hinges on the country's global image, diplomacy, and the perceived reliability of its labor force. Major employers-Saudi Arabia, the UAE, Qatar, Malaysia, and Singapore-shape labor policies through geopolitics, security concerns, and image management. In these destinations, perceptions of a migrant's homeland strongly influence policy openness as a favorable image unlocks bilateral agreements, lighter bureaucracy, and safer working conditions. Bangladesh's reputation for peacefulness, productivity, and adaptability therefore sustains and grows its labor markets.

Maximizing remittance requires robust "Labor Diplomacy" that deploys embassies, missions, and labor attachés to showcase Bangladeshi skills and reliability. Such diplomacy must be continuous, proactive, and data?driven, highlighting success stories and swiftly addressing any reputational threats. It also reassures host governments that Bangladesh continuously upgrades training standards to match evolving global industry needs worldwide.

Last Friday, 36 Bangladeshis in Malaysia were arrested for alleged ISIS links. Malaysian officials report they were propagating radical ideology through underground networks. The incident threatens Bangladesh's standing not only in Malaysia-which hosts 1?.1?million Bangladeshi workers-but across Southeast Asia, the Gulf, and Europe. Any resulting visa curbs or mass deportations could erase over?$3?billion in annual remittance from Malaysia alone. It also risks encouraging copy?cat restrictions in other key labor markets that monitor Malaysian precedents.

Western narratives that equate Muslims with extremism magnify the fallout as a single security breach tied to a Muslim?majority country intensifies global suspicion. Dhaka must therefore tackle the immediate crisis while defending its decades?long record of peace, security, and responsible citizenship.

The interim government must unequivocally condemn extremism. Clear domestic and international statements should reaffirm Bangladesh's zero tolerance for terrorism. Simultaneously, Dhaka must cooperate fully with Malaysian investigators. If the accused are proven guilty, they should face Malaysian justice, with Bangladesh ensuring due legal process. Such transparency signals respect for international law and underscores the nation's accountability as a labor exporter. Any hint of denial or obstruction would jeopardize bilateral ties and the livelihoods of the Bangladeshi migrants in Malaysia.

Dhaka must build lasting protections. Enhanced intelligence?sharing with Malaysia, Saudi Arabia, the UAE, Qatar, and Singapore should become routine. Collaborative security frameworks can screen prospective migrants before departure, flagging and barring individuals with extremist leanings. Institutionalizing these measures will protect Bangladesh's image, preserve vital labor corridors, and secure the remittances that underpin the national economy.

Bangladesh must urgently modernize its migrant?worker vetting. Secure digital identity?verification platforms would sharply reduce forged documents and identity manipulation. At the same time, pre?departure orientation should embed counter?radicalization content like; explaining how extremist recruiters operate, why their ideology is dangerous, and where workers can seek trusted help abroad. Coupled with rigorous monitoring, these steps let Dhaka respond swiftly, transparently, and decisively, shielding both its global reputation and the remittance lifeline that underpins the domestic economy.

Another persistent obstacle to remittance growth is the forced return of workers from conflict?prone states. Prolonged civil wars, economic collapse, and political upheavals have pushed many migrants to abandon jobs or face deportation, causing painful personal setbacks and a measurable dent in national earnings.

Lebanon illustrates the danger. The country once employed more than?120,000 Bangladeshis, but the 2020 Beirut?port explosion triggered hyperinflation, mass unemployment, and political paralysis. By late?2023 the Bangladeshi workforce had fallen below?60,000, with?40,000 returning home-often without final wages-erasing roughly?$300?million in annual remittance.

Syria and Yemen present an even starker picture. Before full?scale wars erupted, about?40,000 Bangladeshis worked across both countries; by?2024, 90?percent had been repatriated or had fled. A?2024 BRAC Migration Programme survey found that 65?percent of those returnees were still unemployed six months after arrival, highlighting the social cost alongside lost foreign exchange.

Iran, while never a major destination, once hosted around?50,000 Bangladeshi migrants in informal industries. Two years of renewed U.S. sanctions and street unrest forced?20,000 to leave, cutting a further?$120?million from yearly remittance. All told, more than?150,000 migrants have returned from unstable countries in just four years, draining at least?$700-800?million from Bangladesh's foreign?currency pipeline.

Safeguarding and expanding this lifeline demand structural reform, energetic diplomacy, smart technology, and iron?clad labor rights. Dhaka must pivot from low?skilled export toward a professional, future?ready workforce. That requires expanding and upgrading Technical Training Centers to deliver globally accredited curricula; embedding intensive language and cultural coaching for destinations such as Japan, Germany, South?Korea, and Australia; and opening safe, regulated migration channels for women, whose participation both diversifies and enlarges foreign earnings. A?2023 World?Bank study shows skilled migrants remit triple the amount sent by unskilled workers-proof that investment in human capital yields exceptional returns.

Equally vital is sustained labor diplomacy: embassies and attachés marketing Bangladeshi talent, negotiating protections, and defusing reputational crises. A joint online job portal with major employers would channel graduates into high?demand sectors, curbing irregular migration. Finally, remittance?linked investment products could steer migrant earnings into national infrastructure, amplifying development impact. Moreover, transition from informal "hundi" networks to transparent, resilient financial pipelines is important. Scaling up mobile financial services can make cross?border transfers frictionless and secure, while a competitive cash?incentive keeps formal channels attractive.

Truly, the state's responsibility does not end when workers step off the plane home. A robust Returnee Reinvestment Programme-combining low?interest credit, business incubation, psychosocial counselling and vocational upskilling-can harness their skills, prevent a slide into poverty and even set the stage for fresh migratory cycles that replenish remittance streams. Linking these veterans with diaspora entrepreneurs and foreign investors further multiplies their economic impact.

Diplomacy must likewise evolve. Bangladesh should negotiate forward?looking labor agreements with emerging European and Central Asian markets such as Romania, Croatia, Poland and Kazakhstan while also leveraging its relationships in the Gulf to cut visa fees and curb workplace exploitation. Embassies and labor attachés must shift from ceremonial roles to problems?solving hubs that champion workers' rights, mediate disputes and scout new job opportunities.

Because every incident abroad reverberates through public opinion and policy, nation?branding is now a strategic imperative. Coordinated media campaigns highlighting Bangladeshi migrants' contributions, coupled with active engagement in forums of the International Labor Organization (ILO) and International Organization for Migration (IOM), can distance the country's image from extremism and underscore its value as a dependable labor partner.

Finally, these disparate threads need the coherence of a single tapestry. A National Remittance Strategy, spanning 2025?2035 and housed in the Ministry of Expatriates' Welfare and Overseas Employment, should set yearly inflow targets, map sector?specific migration goals, create monitoring?and?evaluation dashboards and codify crisis?response protocols for global shocks. Only through such an integrated, long?horizon framework can Bangladesh transform remittance from a vulnerable lifeline into a stable, ever?expanding engine of national prosperity.

In a time when global economies are facing uncertainty, exports are volatile, and FDI is unpredictable, remittance remains the most resilient form of financial inflow-directly benefitting households and macroeconomics simultaneously. Bangladesh must realize that remittance is not merely a byproduct of labor migration; it is a strategic national resource. Ensuring its growth demands consistent investment in human capital, diplomacy, technology, and national branding. Hence, Bangladesh must act now-boldly, wisely, and decisively-to ensure that this lifeline remains not just intact, but ever-strengthening in the years to come.