Finance minister AHM Mustafa Kamal said on Wednesday the payment of incentives to remitters has already started, indicating a massive escalation in remittance earnings this year.
He said the provision of providing a 2.0-per cent incentive was kept in the budget but it took some time to develop a required system to make it effective.
The minister further said that those who have sent remittance since July are eligible to get incentives.
He made the remarks following media reports that remitters were not incentivised during July-September period since the government did not disburse required money in favour of banks.
"From now on, every remitter will get incentive. And those who have sent money in the past three months will also incentives against those transactions."
Mr Kamal said this to newsman after a cabinet committee meeting held at Bangladesh Secretariat.
He said the government has already informed all the remittance-sending agencies to make it effective without delay.
The minister said every remittance transaction amounting to below $1,500 will be entitled to incentive instantly without question.
In case of a remittance transaction amounting to more than $1,500 each, the remitter will have to submit proper documents to get incentives, he added.
Following an announcement of providing incentives, Mr Kamal said, remittance earnings in the past three months have increased by 15-16 per cent.
"The trend shows that remittance earnings this fiscal may reach $20 billion," he hoped.
Meanwhile, a senior Bangladesh Bank official told the FE that finance division on Wednesday allocated required funds to incentivise the remitters.
The minister said the cabinet meeting approved a proposal to lower the threshold of grant element in loans to 25 per cent from 35 per cent.
This has been made in line with the development partner's suggestions, he added.
"As our financial strength has increased, the grant element is lowered," Mr Kamal mentioned.
The meeting also approved the installation of a 50-megawatt solar power plant at Baraiyarhat under Chattogram district.
A consortium of IB Vogt GmBH and AG Agro Industries Ltd will set it up on a build, own and operate basis.
The government will buy electricity at Tk 8.75 per kWh in the next 20 years on a no power, no payment basis.
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