A landmark event unfolded at Dhaka’s Hazrat Shahjalal International Airport on November 11, 2024. The Chief Adviser of the interim government of Bangladesh inaugurated a special lounge named “Probashi Lounge” in the airport dedicated to the exclusive use of migrant workers. The lounge will offer them a space for rest and relaxation. There will also be provision for food at a subsidized rate. Additionally, a dedicated team will provide round-the-clock airport assistance free of cost. It is a nice tribute to the remittance earners of the country and a token of recognition for their contribution to the economy of Bangladesh.
These migrant workers, often poorly educated and unskilled or semiskilled, are vulnerable to exploitation and deception both domestically and internationally. They also face disrespectful treatment at airports even in their home country. The total number of migrant workers staying overseas is estimated to be around 13 million. There is no consensus among various agencies about the exact figure. So, what is their contribution to the economy of Bangladesh that prompted this gesture? The answer lies in the inaugural speech of the “Probashi Lounge” by the Chief Advisor where he remarked, “The country runs because of you”. It’s a conferment of huge credit and recognition that may sound like an exaggeration but is not.
A country runs much like a family. The family has an income and expenditures, and if the expenditures exceed the income, it has to borrow from others. Grossly, a country’s income is export earnings and expenditure is import cost. If earnings fall short of costs, the country must borrow from external sources, such as foreign governments or international organizations like the IMF and World Bank. Loans always entail interests and various conditions that are never easy or benevolent for a country. Loans also increase subsequent costs with the addition of loan repayment costs or debt servicing costs. According to Bangladesh Bank, the loan repayment cost of Bangladesh in the financial year 2022-23 was USD 2.67 billion. In the same period, the import cost was USD 78.30 billion. That makes a total of USD 80.97 billion. But the export earnings in 2022-23 were USD 55.56 billion (Source: EPB). Thus, there is a shortfall of USD 25.41 billion. Bangladesh received foreign loans of USD 9.27 billion in the same fiscal year. This reduces the deficit to USD 16.14 billion. How did we manage this deficit? Well, here comes our remittance earners. Bangladesh received USD 21.61 billion remittance in 2022-23. That not only covered the shortfall but added USD 5.47 billion to our foreign exchange reserves. This simplified analysis shows that our country indeed runs because of our remittance earners.
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This article was published in the Daily Sun on November 17, 2024. Please read the full article here or here.