MoF suggests actions to boost remittance, manpower export
Monday, 6 June 2011
Doulot Akter Mala
The Ministry of Finance (MoF) has prepared 12-point recommendations to increase remittance inflow and manpower export by reducing the gap between inter-bank and market-based currency exchange rates, institutionalising welfare fund for wage earners, introducing euro bond and intensifying diplomatic efforts. The macro-economic Department of the MoF prepared the recommendations after it had observed slow growth of remittance -- only 4.3 per cent -- until April of the current fiscal, a senior MoF official told the FE. The wing recently sent the recommendations to the Bangladesh Bank, Board of Investment (BoI), Internal Resources Division (IRD), Ministry of Expatriate Welfare and Overseas Employment, Ministry of Foreign Affairs and National Board of Revenue (NBR), he said. It prepared the paper in line with the suggestions of the relevant sectors, experts and a detailed study of its own initiative, said the official with the macro-economic wing. "Healthy remittance flow is necessary to maintain macro-economic stability of the country. The wing has taken the initiative to recommend some specific measures that can help manpower export and remittance inflow," he said. The ministry recommended to the BB to reduce gap between inter-bank and market-based exchange rates and make proper adjustment of Real Effective Exchange Rate (REER) against the trade-weighted currencies. Currently, dollar is getting stronger in Bangladesh compared to the currencies of other countries of the world. To reduce the cost of remitting funds, the MoF recommended that the central bank should encourage the commercial banks to set up more money exchange houses in the major Bangladesh manpower importing countries, said a paper containing the recommendations of the ministry. It also recommended for simplification of the terms of the agreements between the exchange houses and commercial banks and also for taking initiative by the BB to help reduce transfer fee and margin of exchange rate. The MoF suggested that the BB and other banks and financial institutions should enter into different agreements with postal department, micro-finance institutions, and mobile phone companies to facilitate the remitters to send money easily. For utilising the remittance fund in productive sectors, the ministry focused on issuance of 'diaspora' bond for the expatriates under Bangladesh Infrastructure Finance Fund Limited (BIFFL). It requested the BoI and NBR to attract the expatriates to invest in the country by offering tax incentives that are now enjoyed by foreign investors. The macro-economic wing recommended that the IRD, BB and treasury and loan management wing of the finance department should encourage expatriates invest in existing saving instruments. The wing also urged the expatriates welfare and overseas employment ministry to create a 'welfare or rehabilitation fund' as an insurance for the wage-earners to face any sudden crisis like that in Libya. The BB and NBR need to motivate corporate houses to support wage-earners under their corporate social responsibility (CSR). To reduce uncertainty about manpower export, the ministry laid emphasis on in-depth studies on the potential of new markets, while making timely diplomatic efforts. According to global construction 2020 report, the Middle-East and North African countries will need a large number of workers for construction, on the eve of the World Cup football in 2018 in Qatar. The country will have to intensify its diplomatic efforts for export manpower to the UAE, Saudi Arabia and Qatar, it noted. 'Migration and skill development fund' can be utilised for maintaining a database and updating it regularly, making adequate research work on manpower export, training up youths, conducting surveys etc., the paper said. According to the data of Bureau of Manpower employment and Training (BMET), manpower export improved in May achieving the highest monthly overseas employment growth in the current year.
The Ministry of Finance (MoF) has prepared 12-point recommendations to increase remittance inflow and manpower export by reducing the gap between inter-bank and market-based currency exchange rates, institutionalising welfare fund for wage earners, introducing euro bond and intensifying diplomatic efforts. The macro-economic Department of the MoF prepared the recommendations after it had observed slow growth of remittance -- only 4.3 per cent -- until April of the current fiscal, a senior MoF official told the FE. The wing recently sent the recommendations to the Bangladesh Bank, Board of Investment (BoI), Internal Resources Division (IRD), Ministry of Expatriate Welfare and Overseas Employment, Ministry of Foreign Affairs and National Board of Revenue (NBR), he said. It prepared the paper in line with the suggestions of the relevant sectors, experts and a detailed study of its own initiative, said the official with the macro-economic wing. "Healthy remittance flow is necessary to maintain macro-economic stability of the country. The wing has taken the initiative to recommend some specific measures that can help manpower export and remittance inflow," he said. The ministry recommended to the BB to reduce gap between inter-bank and market-based exchange rates and make proper adjustment of Real Effective Exchange Rate (REER) against the trade-weighted currencies. Currently, dollar is getting stronger in Bangladesh compared to the currencies of other countries of the world. To reduce the cost of remitting funds, the MoF recommended that the central bank should encourage the commercial banks to set up more money exchange houses in the major Bangladesh manpower importing countries, said a paper containing the recommendations of the ministry. It also recommended for simplification of the terms of the agreements between the exchange houses and commercial banks and also for taking initiative by the BB to help reduce transfer fee and margin of exchange rate. The MoF suggested that the BB and other banks and financial institutions should enter into different agreements with postal department, micro-finance institutions, and mobile phone companies to facilitate the remitters to send money easily. For utilising the remittance fund in productive sectors, the ministry focused on issuance of 'diaspora' bond for the expatriates under Bangladesh Infrastructure Finance Fund Limited (BIFFL). It requested the BoI and NBR to attract the expatriates to invest in the country by offering tax incentives that are now enjoyed by foreign investors. The macro-economic wing recommended that the IRD, BB and treasury and loan management wing of the finance department should encourage expatriates invest in existing saving instruments. The wing also urged the expatriates welfare and overseas employment ministry to create a 'welfare or rehabilitation fund' as an insurance for the wage-earners to face any sudden crisis like that in Libya. The BB and NBR need to motivate corporate houses to support wage-earners under their corporate social responsibility (CSR). To reduce uncertainty about manpower export, the ministry laid emphasis on in-depth studies on the potential of new markets, while making timely diplomatic efforts. According to global construction 2020 report, the Middle-East and North African countries will need a large number of workers for construction, on the eve of the World Cup football in 2018 in Qatar. The country will have to intensify its diplomatic efforts for export manpower to the UAE, Saudi Arabia and Qatar, it noted. 'Migration and skill development fund' can be utilised for maintaining a database and updating it regularly, making adequate research work on manpower export, training up youths, conducting surveys etc., the paper said. According to the data of Bureau of Manpower employment and Training (BMET), manpower export improved in May achieving the highest monthly overseas employment growth in the current year.