‘Remittance may hold key to economic recovery’

  • Dhaka Tribune  May 10th, 2020
Migrant workers

File photo of Migrant workers at Hazrat Shahjalal International Airport Mehedi Hasan/Dhaka Tribune

According to the Bangladesh Association of International Recruiting Agencies (BAIRA), around 100,000 Bangladeshis were waiting to go abroad

With the Covid-19 pandemic halting overseas migration and depriving expatriate workers of their income for the last two months, the flow of remittance has been low in recent times. However, experts believe remittance holds the key to the economy’s recovery after the crisis is over.

Overseas employment opportunities will increase many fold due to the effects of the pandemic, giving remittance the potential to recoup most losses. The export of workers in the health sector may bump up remittance beyond the levels in the old normal, but a comprehensive plan needs to be created swiftly to take advantage of the situation, the experts added.

According to the Bangladesh Association of International Recruiting Agencies (BAIRA), around 100,000 Bangladeshis were waiting to go abroad, some with visas and others with tickets in hand, when the Covid-19 pandemic led to the suspension of global air travel.

The recruiting agencies themselves are also in trouble, as the halt to overseas migration has put 30,000 of their staff members and their families at risk of unemployment due to fixed costs. Some recruiting agencies are paying salaries for their staff and all are paying rent for their offices, potentially forcing the hand of agency owners.

The struggles of the manpower sector

One of the main reasons the manpower sector is struggling is a lack of work due to the worldwide shutdowns to prevent the spread of Covid-19. Many expatriate workers who are employed in the informal sector are struggling to meet food and living expenses due to the lack of income, let alone earning enough to send back home.

Expatriate workers in the formal sector also fear for their jobs, particularly those who are working on ongoing infrastructure projects. Many such projects, particularly in the Middle East, have been put on hold due to falling oil prices and some workers may be forced to return home if the situation persists.

Workers who were scheduled to go abroad but could not due to the suspension of air travel are also facing a number of problems. Many may have to face cancellation of their visas, while others paid for tickets as well as to recruiting agencies. Recovering any money from either the airlines or the agencies would be difficult, as neither has any income source at the moment.

According to the Refugee and Migratory Movements Research Unit (RMMRU), 65% of overseas migrants take loans to go abroad. Payment of the interest on these loans would also be a difficult task without a flow of income.

A possible future challenge to the manpower sector may be if some countries decide to reduce their dependency on workers from overseas. This may force recruiting agencies to cut down on their staff members, while limiting opportunities for the overseas workers themselves.

Untapped potential

Experts and BAIRA leaders said the demand for health professionals, including biologists, lab technicians and nurses, will increase worldwide after the Covid-19 pandemic.

Middle Eastern countries and western countries are unlikely to meet the increased demand from their own nationals, and will likely look at 10-12 countries from where they will recruit, the experts added.

They further said skilled migrants who are rendered jobless overseas and forced to return to Bangladesh may be used to replace Korean and Chinese workers in the country’s mega projects.

Tasneem Siddiqui, RMMRU chair and professor of political science at University of Dhaka, said that all of these issues should be considered in a plan.

“We have to stress on technical training to produce health workers. Universities should increase the number of students of microbiology. If we can go through this plan and act accordingly, we will benefit in the future,” she said.

“Chinese, Korean, and Indian nationals are sending a huge amount of remittance from Bangladesh to their respective countries. We have to work towards replacing them with our returning migrants. For this reason, a database of returning migrants is needed,” the RMMRU chair added.

Syeda Shahana Bari, additional secretary of employment-5 (research) of the Ministry of Expatriates’ Welfare and Overseas Employment, said: “We have resources [returning migrants] in our country. All these resources remain unused. When migrants return to our country, they lose their spirit. This is the problem. They need work in the country.

“We have plans for them. If they use the plans, they will face no problems,” she added.

Shameem Ahmed Chowdhury Noman, secretary general  of BAIRA, said : “We have to prepare a plan and start working according to the plan right now. If we wait for the situation to improve, that will be a mistake. Our competitors like the Philippines, Indonesia, India, Sri Lanka, Vietnam, and Pakistan will take the advantage.”

Former secretary general of BAIRA Ali Haider echoed Shameen Ahmed on the need for a plan, adding that all recruiting agencies should look at skilled workers in the health sector and keep communication with their counterpart companies in the receiving countries. The counterpart companies can advocate in favor of Bangladesh with their government.