Bangladesh government has formed a two-member secretary committee to find the causes behind the fall of remittance inflow in the country last year, said official sources.
The money remitted home by the Bangladeshi expatriates living abroad witnessed a decline of 11.13% in 2016 from the previous year’s figure.
According to the Bangladesh Bank data, Bangladesh received $13.6bn remittance in 2016, which is far less than $15.3bn received in the year 2015.
“The government formed two member committee to find why remittance inflow fell sharply last year,” Senior Finance Secretary Mahbub Ahmed told the Dhaka Tribune yesterday.
He said the members of the Fiscal Coordination Committee held several meetings already to discussed the fall of the inward remittance in the country.
The preliminary findings revealed that two major causes played a roles in the fall of the remittance, said Mahbub Ahmed.
First is the differences between bank rate and curb market rate of US dollar and Bangladesh taka. And the second is the loss of jobs of the Bangladeshi workers in the Middle East after big fall of fuel oil prices.
The committee members include Bank and Financial Institutions Division Secretary Md Eunusur Rahman and the Ministry of Expatriates’ Welfare and Overseas Employment Secretary Shamsun Nahar. They have already held several meetings on the matter, Mahbub Ahmed said
The committee is expected to submit its report to the next fiscal coordination council meeting, he said.
A recent government report said that 78% of the remittance sent by 8.6m Bangladeshis working abroad are channeled through banks and 12% come through illegal channels like Hundi.
The economists are concerned that the drop in Bangladesh’s most reliable source of foreign funding may affect the macro-economy. Remittance contributed 13% of the gross national product of 2015.
Agrani Bank Chairman Zaid Bakht said the nonstop drop in cash flows for the past few months has already affected the macro-economy negatively.
“If the downward trend continues, it may hit the ascending growth of the GDP,” he added.
Planning Minister AHM Mustafa Kamal earlier said the annual growth rate of GDP of Bangladesh hit the highest ever record at 7.11% in the last FY2015-16.
Kamal said the economy would grow at 7.2% in the present financial year.