Experts for remittance incentive to rise to 4pc
Staff Reporter :
Experts and stakeholders have urged the government to increase the remittance incentive from 2.5 per cent to 4 per cent to encourage overseas workers to use legal channels for sending money. This proposal was discussed at a seminar titled “Measures to Increase Remittance Income,” held in the capital on Saturday.
Hassan Ahmed Chowdhury Kiran, Chairman of Debate for Democracy, delivered the keynote presentation at the event. Kiran emphasised the need for proactive measures by the government and banks to promote formal remittance transfers. He recommended that banks adopt innovative approaches, such as directly visiting workers’ workplaces-similar to the practices of hundi operators-and facilitating transfers through mobile banking platforms for easier access by recipients.
“I propose increasing the government incentive on remittances from 2.5 per cent to 4 per cent to motivate overseas workers to use legal channels for sending money,” Kiran said. He also noted that overseas workers had remitted $27 billion over the past year, with 25 per cent of the country’s workforce employed abroad. Without this foreign employment, Bangladesh’s poverty rate would have risen by an additional 10 per cent.
Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), spoke as the chief guest. She underscored the need to incentivise remittance earners, curb the hundi system, and focus on exporting skilled workers. “The volume of hundi in our country is significantly higher compared to others, and measures must be implemented to eliminate it. Increasing remittance incentives will encourage more expatriates to use formal channels,” she said.
Regarding the proposal to raise the remittance incentive to 4 per cent, she remarked, “This deserves serious consideration.” She also highlighted the importance of providing better services to expatriates through embassies and banks. “We must ensure that the facilities at the expatriate lounge, such as the food, cater to their preferences. Migrant workers are invaluable assets and deserve proper care and respect,” she added.
Dr. Fahmida Khatun also stressed the need to prioritise the training and deployment of skilled workers abroad, as this would significantly boost remittance inflows.
The seminar concluded with an awards ceremony for the International Migrants Day 2024 Debate Competition. Sher-e-Bangla Agricultural University emerged as the champion, while Begum Rokeya Government Women’s College secured the runner-up position. Both teams received cash prizes, trophies, crests, and certificates.
