The proposal was presented at a seminar titled “Measures to Increase Remittance Income,” held in the capital on 18 January 2025.
In order to incentivize foreign workers to transfer money through legal means, experts and stakeholders have suggested increasing the remittance incentive from the existing 2.5% to 4%. The recommendation was made at a conference called “Measures to Increase Remittance Income,” which took place in the capital today, January 18. The seminar’s main speaker was Hassan Ahmed Chowdhury Kiran, chairman of Debate for Democracy.
Kiran emphasized the necessity for banks and the government to take a more active role in encouraging lawful remittance transactions. He recommended that banks take further steps to collect money, such visiting employees’ places of employment directly, much like money changers (hundi operators) do. Additionally, receivers should be encouraged to use mobile banking for simple transfers.
“I suggest raising the 2.5% government remittance incentive to 4%. This would encourage foreign workers to transfer funds legally,” he added. He said that 25% of the nation’s workforce is hired through migration, and that foreign workers sent $27 billion home in the last year. In the absence of foreign employment, Bangladesh’s poverty rate would have risen by an additional 10%.
Dr. Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), spoke as the principal guest and emphasized the need to abolish the practice of hundi, send talented workers outside, and offer incentives to remittance earners. “The amount of hundi in our country is significantly higher than in other countries,” she stated. It must be stopped by taking action. Remittance earners will be more inclined to transfer money through authorized channels if the incentives are raised.
“The proposal to raise the incentive from the current 2.5% to 4% should be considered,” she stated. “Foreign banks and embassies need to be more committed to serving expatriates,” she continued. We must ascertain whether the burgers and other meals offered in the airport expatriate lounge suit their tastes. As valuable resources, migrants must be treated with the respect and care they deserve. “At the moment, the majority of our migrant workers are unskilled,” she added. Remittances will rise if we prioritize sending more skilled workers overseas.
Sher-e-Bangla Agricultural University, the winners of the International Migrants Day 2024 Debate Competition, and Begum Rokeya Government Women’s College, the runners-up, received cash awards, trophies, crests, and diplomas at the seminar’s end.
Source: The Business Standard
