Dhaka, July 30 (Inditop.com) Bangladesh could receive $10.87 billion in remittances in the current fiscal from its vast manpower employed abroad if the global oil price does not fall, the World Bank has said.
It has said that remittance inflow increases when a country’s economy goes through hardship.
The findings were based on a survey conducted in 2007 and presented to the media in a report titled “Remittances in Bangladesh: Determinants and Outlook”, released here Wednesday.
Some of its findings go beyond traditional beliefs: only nine percent of the remittance is sent through unofficial channels.
The migrants send 33.6 percent remittance by cheque or bank draft, 23 percent by direct transfer to their own bank accounts, 16 percent to a third person’s bank account, 15 percent through personal delivery by friends or relatives and 9 percent by Hundi (an illegal channel of remitting money).
Also, the migrants’ households spend more on food and lifestyle rather than productive sector such as purchasing land, The Daily Star said.
WB senior economist Zahid Hussain said if the present exchange rate of Taka 68.8 per dollar continues and oil price remains at around $68 per barrel on an average, around 610,000 employments may be created abroad for Bangladeshis in the current fiscal year.
In that case remittance inflow this fiscal year would be $10.87 billion at a 12.3 percent growth rate. But if 150,000 jobs are created abroad, the figure will be $10.49 billion with a growth rate of 8.4 percent.
The bank found that on an average a migrant sends home Tk 101,579 a year.
The donor agency said more inflow of remittance accelerates the pace of poverty reduction.
The monthly per capita expenditure of a migrant household is significantly higher compared to a non-migrant one. “They eat better (more fish and meat), dress better, buy more household appliances, and save a good part of their remittance receipts.”
However, there is no significant difference between migrant and non-migrant households in terms of per capita expenditures on health and education, vehicles, jewellery and land acquisition.
“Outstanding loans are significantly higher for migrant households, possibly reflecting upfront financing of migration costs through borrowing,” the report said.
