Internship report on

Foreign Remittance in Bangladesh

Prepared By:

Name: Imran Iqbal

ID :101011087

Department: BBA

Prepared For:

AFM Wazir Ahmad

Supervisor

University Of Liberal Arts Bangladesh

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 PLAGIARISM DECLARATION

1. I know that plagiarism means taking and using the ideas, writings, works or inventions of
another as if they were one’s own. I know that plagiarism not only includes verbatim
copying, but also the extensive use of another person’s ideas without proper
acknowledgement (which includes the proper use of quotation marks). I know that
plagiarism covers this sort of use of material found in textual sources and from the
Internet.

2. I acknowledge and understand that plagiarism is wrong.

3. I understand that my research must be accurately referenced.

4. This assignment is my own work, or my group’s own unique group assignment. I

acknowledge that copying someone else’s assignment, or part of it, is wrong, and that
submitting identical work to others constitutes a form of plagiarism.

5. I have not allowed, nor will I in the future allow, anyone to copy my work with the
intention of passing it off as their own work.

Name ________IMRAN IQBAL_______________(BLOCK LETTERS)

ULAB ID #_____101011087______________

Signature _____________________________ Date:18-09-2013

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 Letter of Transmittal
December 19, 2013
To
AFM Wazir Ahmad
Supervisor
School of Business
University of Liberal Arts Bangladesh.

Subject: Submission of internship Report.

Dear Sir,

This is my great pleasure to submit the internship report proposal on “Foreign remittance in Bangladesh” as a
requirement of internship/ project program.

In this report I will be emphasizing on the practical experience by working in a company and linking the
theoretical knowledge with its application in the real life situation. The report will suggest ways and means to
improve the current practices. This study, under your able and constant guidance, would enable me to gain new
insights about how a research work is carried out and to apply my theoretical knowledge acquired in the
classrooms of ULAB to the practical field.

I shall be happy to provide with any supplementary information and clarification that might require.

Yours Sincerely,

----------------------------------------
Imran Iqbal

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 Acknowledgement

I would like to take this opportunity to express my sincere gratitude to those without whose blessings and

cooperation this project would not have been possible.

First of all I am grateful to All Mighty Allah for helping me to complete this report on time. I would like to
thank my honorable supervisor AFM Wazir Ahmad School of Business, University of Liberal Arts Bangladesh
for his guidance, constant and spontaneous support, efficient supervision and constructive suggestions. Without
his help this report would not have been a comprehensive one.

During the internship period I have got cooperation from number of employees from the concerned
organization. Specially, I would like to thanks Manager Operations and Executive Officers, for helping me
providing valuable (covert in some extent) information about their company and sharing their strategic views
about managing their departments with me. Their vision and future plan have guided me towards this
accomplishment.

Last but not least I also acknowledge my family and friends for their support and encouragement throughout the
preparation of this report.

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 TABLE OF CONTENTS
Topic Page No
Letter of transmittal 3
Acknowledgement 4
List of Abbreviation 8
Executive Summary 9

Chapter Page no:

Chapter One: Introduction 10

1.0 Introduction 11

1.1 Back ground of the report 11-12

1.2 Objectives of the report 12

1.3 Methodology of the report 13

1.4 Structure of the report 13-14

1.5 Limitation of the report 14

Chapter Two: Over view of foreign remittance in Bangladesh 15

2.0 Historical Perspective 16

2.1 Definition of Remittance 16-17

2.2 Classification of Remittance 17-18

2.3 Channel of foreign remittance 18-19

2.4 Uses of foreign remittance 19-22

Chapter Three: Last five year performance of remittance, 23

overseas employment & impact of remittance

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3.0 Remittance inflows in Bangladesh 24-25

3.1 Country-wise remittance inflows 25-28

3.2 Overseas Employment of Bangladesh 29-30

3.3 Worth of overseas employment 29

3.4 Destination of overseas employment 30

3.5 Future prospect of overseas employment 30-31

3.6 Categories of Migration 31-32

3.7 Causes of Migration 32

3.8 Women migration 32-33

3.9 Impact of Remittance on different socio-economic factors 34

3.10 Impact on the Economy of Bangladesh 34-35

3.11 Impact of remittance on women development 35

Chapter Four: Findings or analysis & Recommendation 36

4.0 Findings and Analysis 37-38

4.1 Recommendation 38-40

Chapter Five: Conclusion 41

5.0 Conclusion 42

Reference 43

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 List of Tables

Table No Subject Page

1. Utilization pattern of Remittance 21

2. Remittance Inflow: (from 2013 to 2009) 24

3. Position wise flow of remittance 2012-13. 26

4. Country-wise flow of remittance to Bangladesh in FY 2011-12 28

and 2012-13.
5. Last 5 Years overseas employment (2009 to 2013) 29

6. Category-wise overseas employment (from 2008 to 2012) 31-32

7. Last 5 years women migration (from 2009 to 2013) 33

List of graph/Figures
Graph No Subject Page No
1. Uses pattern of Remittance: 22
2. Remittance Inflow: (from 2013 to 2009) 25
3. Country-wise flow of remittance 2012-13. 27
4. Country-wise flow of remittance to Bangladesh in FY 2011-12 28
and 2012-13.
5. Last 5 Years overseas employment (2009 to 2013) 30
6. Last 5 years women migration (from 2009 to 2013) 33

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 List of Abbreviation

Short Form Full Meaning

FTT Foreign Telegraphic Transfer

FDD Foreign Demand Draft
FY Fiscal year
TC Travelers Cheque
T.T. Telegraph Transfer
GDP Gross domestic product
FE Foreign Exchange
BOP Balance of Payment
IBBL Islami Bank Bangladesh Limited

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 Executive summery

The report is prepared based on the foreign remittance of Bangladesh. This reports aim is to find out the
remittance of Bangladesh. Remittance means sending of money or its equivalent and checks from one place to
another or one country to another country. Remittances are playing an increasingly large role in the economies
of many countries, contributing to economic growth and to the livelihoods of less prosperous people.

Remittances are not a new phenomenon in the world, being a normal concomitant to migration which has
always been a part of human history. Usually remittance is payment for goods and services received or as an
allowance, when sent by the post. It effects the social and economic factors like food, housing, living
condition ,education, poverty reduction, social security health care and investment activities of the recipient
households.

The 1st chapter is basically discussed about the background of the study, objective and research methodology
which contains data collection, data processing and analyzing and limitations of the report.

The 2nd chapter is about presented the overview of the Topic & define it clearly.

The 3rd chapter is about the last 5 years performance of remittance in Bangladesh.

The 4th chapter is discussed about the findings in summary form.

The 5th chapter, I focused on some noticeable findings and gave some recommendation against those findings.

Remittances are an important and stable source of income for households, in particular in developing countries
Analytical studies have shown that the flow of remittances is the least influenced by economic downturn and
remains a stable source of income. Remittances have been identified as the third pillar of development as their
volume is second to foreign direct investment and higher than overseas development assistance. Analytical
studies have shown that remittances contribute to poverty reduction in home countries. Remittances” has now
become commonly used term, which is however rarely defined.

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CHAPTER 1

Introduction

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 1.0 Introduction:

Remittance plays a cardinal role in Bangladesh economy. In my point of view Remittance means the transfer of
money by a foreign worker to his or her home country or the transfer of any kind of funds across national
boundaries. In the economy of Bangladesh, Remittance inflows are getting larger every passing year, matching
with the increasing external demand for its manpower. Remittance helps to improve the social and economic
demonstrator like food, living condition and housing, education, poverty reduction, health care, social security,
and investment activities of the recipient households. Remittances have also increased in its contribution to
GDP. In addition, Bangladesh has been able to avoid any kind of serious imbalance in BOP’s current account by
remittance.

Though the political unrest, infrastructural problem, etc hampered the commercial activities, still the economy
of Bangladesh has earned a major advancement. This happened mainly due to the global commercial expansion,
the remittances sent by the emigrant Bangladeshis & the increase in foreign trade. I was more interested in
analyzing the importance of this foreign remittance & how a bank manages the transactions.

This report is an internship report prepared as a requirement for the completion of BBA program (Major in
Accounting) from the University of Liberal Arts Bangladesh. The primary goal of internship is to provide an
opportunity to implement theoretical knowledge in real life situation.

1.1 Background of the report:

Any academic course of the study has a great value when it has practical application in the real life. Only a lot
of theoretical knowledge will be little important unless it is applicable in the practical life. So we need proper
application of our knowledge to get some benefit from our theoretical knowledge to make it more fruitful when
we engage ourselves in such field to make proper use of our theoretical knowledge in our practical life.

Foreign remittance is just not a part of income it’s also the power on which improvements run smoothly.
Without remittance progresses are never imagine of any developing countries. At present time
remittance has keep the economy of Bangladesh more progressive. One of the main sources of our
national income is foreign remittance. Foreign remittance is now become a significant issue in our present

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economy that’s why this topic makes me more pleasure. The report is titled “Foreign Remittance
performance in Bangladesh”. As a student of BBA this study will be more significant in my practical life.

1.2 Objectives of the report:

Without Objective nothing can be counted as a successful one. My internship program was also directed to
serve some particular objectives. The main objective of the study is to gain practical knowledge and experience
relating to Foreign Remittance performance in Bangladesh.

General objectives of the Report:

 To have an overall idea about the performance of remittance in Bangladesh last 4-5 years.

Specific objectives of the Report:

 To give an overall idea about the overseas employment and Remittance.

 To estimate the amount of regular inflow of foreign remittance in Bangladesh.
 To know about the monthly country wise wage earners remittance inflows.
 To identify the impact of foreign remittance in our economy.
 To know about the sources of remittance in our country.
 To know about the uses of foreign remittance in our country.
 To find out the problems of remittance income of Bangladesh
 To recommend some suggestions based on findings to overcome the barriers of remittance income in
Bangladesh.
 Look for the potential opportunity of remittance income in Bangladesh.
 To have an idea on types, channel, source of foreign remittance in Bangladesh.

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 1.3 Methodology of the report:

The proposed study has been focused on the foreign remittance in Bangladesh. By the comprehensive
discussion with my course supervisor Wazir AF Ahmad I have decided to make my internship report on
“Foreign remittance performance in Bangladesh.’’ Mainly I have collected data from one source which is
secondary data.

Sources of Data Collection:

Sources of Data:
This research study has been directed and resolved on the basis of secondary data and information. The sample
period of these secondary data and information is 2008-2013(September). This data and information were
collected from the website of Bangladesh Bank, Ministry of Expatriates’ Welfare and Overseas Employment,
Bureau of Manpower, Employment and Training, and the World Bank. This report focused on two things. First,
it highlights the remittance income of Bangladesh and later, it investigates and find out the opportunities and
challenges of remittance income in Bangladesh.

Determination of time horizon:

The time horizon has been selected of five years from 2009 to 2013. Over the five year time period, the related
data of the foreign remittance has been evaluated.

Data Processing & Analysis:

Data has been computerized & processed by using MS Word, MS Excel.

1.4 Structure of the report:

This report is divided into different parts: This are given here

In Chapter One, I discussed about the background of the study, objective, research methodology etc.

In Chapter Two, I presented the overview of the Topic & define it clearly.

In Chapter Three, here I discussed about the last 5 years performance of remittance in Bangladesh.

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In Chapter Four, I discussed about the findings in summary form.

In Chapter Five, I focused on some noticeable findings and gave some recommendation against those findings.

At the end of the report, I attached some references & acronyms, which I used for the purpose of the report.

1.5 Limitation of the report:

I also faced some limitations or obstacles in the way of completed my internship program.

 The arrangement of data was not good in government websites.

 Unavailability of accurate and quality data on remittance.
 Could not collect enough information from the secondary sources.
 One of the main limitations of the study is I could not use primary data/information to analyze the study.
 Find out the concrete results relating to opportunities and challenges of remittance income of
Bangladesh.
 The collection of data from different sources was tough.

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 CHAPTER 2

Over view of Foreign Remittance

in Bangladesh

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 2.0 Historical Perspective:

Bangladesh has a long history of overseas remittances and migration. In 1942 Bangladeshi nationals had
migrated to the port cities of London and Liverpool in the UK. The British had a scheme of issuance of
employment voucher to overseas workers seeking work abroad. During the British Ruling time the scheme
had opened up a great opportunity for Bangladeshi workers to migrate to United Kingdom (UK). It is believed
that thousands of Bangladeshis, especially from Sylhet, took the first opportunity and created a flow of
migration towards UK. For certain reasons, this flow had weakened by the 1960s and the direction of the
migration flow changed in the 1970s. After the birth of Bangladesh, most Bangladeshi migrants researched to
look for job opportunities in the Middle East countries as well as selected EU destinations (mainly Germany).
A tendency to find employment in developed countries like USA, Canada, and Italy and in some Asian
countries like Japan, Malaysia and Singapore was observed in the 1990s and onward. The process of migrating
abroad from Bangladesh is continuing strongly till now. During the period from 1976 to 2006, the migration of
labor totaled 4.55 million with yearly migration being 6,087 in 1976, 3, 77,591 in 2006 and 562068 in 2011.
The huge increase in outward migration as indicated above makes Bangladesh as one of the major remittance
recipient countries in the world.

2.1 Definition of Remittance:

The word Remittance arises from the word “remit” which means to transmit money or fund.

In the point of view in banking, remittance means transfer of fund one place to another. When money
transferred from one country to another, this is called Foreign Remittance. Transfer of Capital, usually from
a buyer to a distant seller or the instrument of transfer such as a check or draft.

In point of view of Investopedia, remittance means when a person sends a check to the government to pay for
a tax bill, the check is remittance to remove the tax obligation. If you were to send money to a friend in Europe
through a wire-transfer service, the sum of the payment is the remittance.

My point of view, simply remittance means transfer of money from one country to another country by a bank
or any path, broadly when someone or migrants send some part of money of his/her income from outside of the

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country for his/her families support or any purpose, this transfer is called foreign remittance. That means
foreign remittance is the transfer of foreign currency from one country to another country.

2.2 Classification of Remittance:

Foreign remittance may be classified into two types:

Inward foreign remittance:

Inward Foreign Remittance means remittance received from abroad. In other words remittance coming into our
country from other countries by the remitter by way of permissible banking channel through freely convertible
Foreign Currencies is called ‘Inward Foreign Remittance’ from the beneficiary country’s point of view. From
the remitter’s point of view it is called outward Foreign Remittance.

My point of view, Inward Foreign Remittance means Remittance received from foreign countries from abroad.
To the bankers or ADs inward remittance means purchase of foreign currency by authorized dealers.

Ways of Inward Foreign Remittance:

Some way of Inward foreign remittance

 Spot Cash.
 FTT
 FDD
 TC

Outward Foreign Remittance:

Outward remittance of funds be made by means of T.T. D.D. T.T. etc. the remitter has to deposit money along
with the application contains name and address of the payee name of the currency etc. All outward remittances
must cover the transactions approved by the Bangladesh Bank.

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My point of view, remittance from our country to foreign countries is called outward foreign remittance. On the
other word, sales of foreign currency by the authorized dealer or formal channels may be addressed as outward
remittance.

Ways of outward Foreign Remittance:

Some way of Inward foreign remittance

 FDD
 FTT
 TC

2.3 Channel of foreign remittance:

There have two types of channel to transfer money to Bangladesh from different countries. Those are:

a. Official Channel
b. Unofficial channel

a) Official Channel:

Telegraphic transfer:

Any kinds of fund transfer by mobilized banking system. Its main objective is to ensure that the funds reach the
destination fast and save.

Western union:

This was another vital official channel of foreign remittance. This was the fast way to send and receive money
worldwide.

Demand draft:

It’s a process, that funds are cleared by the informer of major cities and cheaper than other method.

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Postal order:

An official piece of paper with an amount of money written on which can be posted to someone who can
exchange it for the same amount of money

Habib express:

Habib express was fast and secure money transfer system in the world. Its main objective was to ensure the
service quality. This business oriented from Qatar.

b) Unofficial channel:

Hundi system:

The Hundi operator or agent is in fact an illegal foreign exchange dealer. The send the hundi operator in a
foreign country the currency of that country or dollar or pound or any acceptable currency by the operator while
any relatives or agent in Bangladesh receives equivalent amount of money in taka. The agent in Bangladesh
conducted by the telephone, fax or e-mail by the hundi in the host country and sub agent pays the money to
relative of the sender. The hundi rate is usually 1or 2 higher than the official channel.

Relatives and friends:

Migrants and their relative or friends often bring consumer resilient, gold, electronics, etc and also foreign
currency without declaring it to appropriate authority. These are often sold in the local market and dollar in the
local market.

2.4 Uses of foreign remittance:

Remittances are mostly used by the individuals for purchasing apartment & land and in other consumables at
the individual level. Generally remittance is used in the following expenditures:

A. Repaying loans for migration.

B. Purchasing land and constructing house.
C. Investing in business and share market.

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 D. Increased in income and savings.
E. For Community development.
F. Improved living standard.
G. Gift & Social ceremonies.

Use in Household:

The part of remittance, usually the families are use in consumption in different purposes such as food and
clothing, purchase of land, marriage and ceremonies, trading, education, health care and so forth. They use
maximum portion in food and clothing than in purchase of land than in home construction.

Saving & Fixed deposit:

The part of remittance which received by our country people save in different banks. They deposit a big amount
of money as fixed deposit for their future needs.

Investment in business:

They also use remittance money in existing business or to open a new business. The business may be small of
big. It depends on the remitted money them received.

Repayment of loan:

Most of the cases remittance money is use for payment of lone that takes from different banks or people.

Gift or Donation:

This money is use for present gift to relatives or for donation for a while.

Furniture:

Most of the low or middle classes people depend on remittance money to purchase home furniture.

Home construction repair:

In major cases most of remittance money is used for construction of new home and repairing of house

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Table no 01: Utilization pattern of Remittance

Purposes Remittance used %

1. Home construction / Repair 15.02

2. Purchase of Agricultural land 11.24

3. Repayment of loan for Migration 10.55

4. Gift & Social ceremonies 9.07

5. Sending family member abroad 7.19

6. Investment in Share market & business 4.76

7. Repayment of loan other purposes 3.47

8. Saving or Fixed deposit 3.07

9. Child education 2.75

10. Release of mortgage land 2.24

11. Taking mortgage of land 1.99

12. Homestead land purchase 0.96

13. Gift or Donation to relatives 0.94

14. Send relative for pilgrimage 0.92

15. Furniture 0.69

16. Insurance 0.33

17. Community development activities 0.09

18. Others 1.05

Total 100%

Figure 01: Uses pattern of Remittance:

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 Uses pattern of Remittance:

Home construction / Repair

Purchase of Agricultural land

Repayment of loan for

Migration

Gift & Social ceremonies

Sending family member abroad

4% 20%
1% 1% 1% 0% 0% 1%
4% 3% Investment in Share market &
3% 1% business

5% Repayment of loan other

purposes

Saving or Fixed deposit

6% 15%
Child education

Release of mortgage land

9% 12% Taking mortgage of land
14%
Homestead land purchase

Gift or Donation to relatives

Send relative for pilgrimage

Furniture

Insurance

Community development
activities

Others

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 CHAPTER 3

Last Five years Performance of Remittance,

Overseas employment
&
Impacts of Remittance in Bangladesh.

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 3.0 Remittance inflows in Bangladesh:

In FY 2012-13, the rate of growth in remittance was 12% which was 1.76% more than that of FY 2011-12.
Bangladesh received US$ 14.5 million remittance which is highest ever in 2013. In FY 2012-13, Bangladesh
received remittances of 14461.14 million which was 1617.71 million more than that of FY 2011-12. In FY
2011-12, the rate of growth in remittance was 10.24 percent, which was 4.21 percent more than that of FY
2010-11. In FY 2010-11, the rate of growth in remittance was 6.03 percent, which was respectively 7.36, 9.02
and 9.97 percent less than those of FY 2009-10, FY 2008-09 and FY 2007-08. In FY 2011-12, Bangladesh
received remittances of USD 12843.43 million which was 1193.11 million more than that of FY 2010-11.
Especially, the inflow of remittance had been increasing from the FY 2001-02.

Table no 02: Remittance Inflow: (from 2013 to 2009)

Remittance Remittance
YEAR

In million US Dollar In million Taka

2012-13 14461.14 1156460.78

2011-12 12843.43 1018827.79

2010-11 11650.32 829928.90

2009-10 10987.40 760109.59

2008-09 9689.26 666758.50

Figure 02: Remittance Inflow: (from 2013 to 2009)

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 Remittance Infow: ( from 2013 to 2009 ) in million

9689.26 Year 2008-

14461.14 09
Year 2009-
10
Year 2010-
10987.4
11
Year 2011-
12843.43 12
Year 2012-
13
11650.32

3.1 Country-wise remittance inflows:

The remittance earned in 2013 was amounted to US$ 14.50 billion. KSA tops the list comprising (US$ 3.82b)
of the total. KSA occupies the ever 1st position in regard to remittance flow to Bangladesh till 1976. UAE stands
at 2nd position possessing (US$ 2.82b). The United States and the United Kingdom do not host many
Bangladeshi short-term workers in cumulative counting, but they hold the 3rd 1.85b) and 6th position (US$
0.991 b) respectively highlighting the role of permanent migrants in remittance transfers. The cumulative figure
of remittances from Kuwait constitutes 4th (US$ 1.18 b). Malaysia scores the 5th position (US$ 0.997b). In 2011,
the migration from Bangladesh is very negligible to the KSA, Kuwait and Malaysia, but the position of
remittance sending are 1st , 4th and 5th respectively, which indicates that the remittance flow depends on the
aggregate numbers of migrants. Next positions are occupied by Oman 7th (US$ 0.61b), Singapore 8th (US$ 0.49
b), Bahrain 9th (US$ .36 b), and Qatar 10th (US$ 0.28b).

Table no 03: Position wise flow of remittance 2012-13.

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 Position Country US$ in Billion

1st KSA 3.82

2nd UAE 2.82

3rd USA 1.85

4th Kuwait 1.18

5th Malaysia 0.997

6th U.K 0.991

7th Oman 0.61

8th Singapore 0.49

9th Bahrain 0.36

10th Qatar 0.28

Figure 03: Country-wise flow of remittance 2012-13.

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 Contry-wise flow of remittance 2012-13 US$ in million

25.81 21.18 61.77

526 362 Baharain
1186.93 Kuwait
1859.76 Oman
610.11
286.89 Qatar
K.S.A

991.59 U.A.E
Libya

498.79 Iran
Australia
3829.4
997 Hongkong
Italy
233.23 Malaysia
60.91 Singapore
57.65
2829.78
U.K.
U.S.A
Germany
Japan
S.Korea
Others

Table no 04: Country-wise flow of remittance to Bangladesh in FY 2011-12 and 2012-13.

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Country KSA U.A.E U.S.A Kuwait Malaysia U.K. Oman Singapore Bahrain Qatar

FY 11-12 3684 2404 1498 1190 847 987 400 311 298 335

FY 12-13 3829 2829 1859 1186 997 991 610 498 361 286

Figure 04: Country-wise flow of remittance to Bangladesh in FY 2011-12 and 2012-13.

4500

4000

3500

3000

2500

2000 FY 11-12
FY 12-13
1500

1000

500

0
t e ar
SA .A .E .S
.A
w
ai ysia U
.K an or rai
n
at
K a m p h
U U K
u al O
ng
a
Ba
Q
M Si

3.2 Overseas Employment of Bangladesh:

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Year 1976 to 2013 around 8.6 million Bangladeshi migrants are working in different countries of the world.
Government is providing addiction and importance to the economic impact of overseas employment sector for
the development of Bangladesh. As per official record available at BMET, Bangladesh started sending
manpower abroad officially in 1976. Starting with the number of 6087 in 1976, now it reached at 371,647 in
2013. In the year of 2012, the number of overseas employment from Bangladesh was 607,798. The number of
oversea employment rapidly increased in the year of 2010 to 2012. But unfortunately in 2013 it decreased than
previous years, because of bad political situation, violence, Strike and different unsuitable circumstance.

Table no 05: Last 5 Years overseas employment (2009 to 2013)

Year Number of Employment

2009 475,278

2010 390,702

2011 568,062

2012 607,798

2013 371,647

3.3 Worth of overseas employment:

In my point of view, human resources and the limitation of creation of local employment opportunity on
overseas employment is now conceived as a manifest development of economic independence and
empowerment for Bangladesh. It has become an added advantage for poverty aid. Migration and the remittances
from manpower export have established a great development of Bangladesh economy. Remittances from
Bangladeshi migrants have contributed a bigger portion of the country’s development budget than foreign aid.
Successful migration can be established through safe and profitable stay at workplace.

Figure 05: Last 5 Years overseas employment (2009 to 2013)

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 Last 5 years overseas employment (2009-to 13)
200
371,647 9
475,278 201 3.4
0
201
607,798 390,720 1
201
2
201
568,062 3

Destination of overseas employment:

Major countries of migration are Saudi Arabia, UAE, Jordan, Kuwait, Oman, Qatar, Bahrain, Malaysia,
Singapore, Libya and Lebanon. Destinations for women migration from Bangladesh are UAE, Lebanon, Saudi
Arabia, Jordan, Kuwait, Oman, Bahrain, Mauritius, Maldives, etc. Presently almost majority manpower is
migrating to the UAE occupying the first position.

3.5 Future prospect of overseas employment:

Demand for Bangladeshi workers is day by day increased because Bangladeshi workers are work hard and took
reasonable wages for their work. Bangladeshi workers are governing mostly in the middle-eastern and south-
eastern countries. Demand in the countries of European Union and USA in some specific professions also
exists. Bangladeshis have a good opportunity to be absorbed in this demanding employment market with
significantly higher wages. European and Nordic countries also feel the shortage of appropriate hands for baby
care, old age care, sick persons care, etc. To accrue this achievement, the basic need is training in specific trade
and communication skill. So I can easily say that if government should take proper steps for the wage earner
workers training and other basic needs may be they will more contributed to our country.

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 3.6 Categories of Migration:

Different types of Bangladeshis are working outside of the country. A large portion of them are un-skilled
(377,120 up to 2012) and skilled (209,368 up to 2012) workers. Four types of skill groups have been
identified for workers. These are Professionals, Skilled, Semi-skilled and Less skilled (unskilled).
Accountants, Computer programmers, Pharmacists, Nurses, Foremen, Diploma Engineers, Paramedics, Sales
personnel, Doctors, Engineers, Architects, University and College teacher etc, are treated as professionals.
Skilled workers group includes Carpenters, Electricians, Mechanics, Welders, Masons, Painters, Cooks, Tailors,
Blacksmiths, Tile fixers, Operators, Drivers, Plumbers, etc. Semiskilled category includes Farmers, Gardeners
and different types of helpers in various trades. Finally Cleaners, Servants, Laborers, General workers, etc, are
grouped into the Less-skilled category. They have very little or no educational background and have not
received any kind of training.

Table no 06: Category-wise overseas employment (from 2008 to 2012)

Year Workers category

Professional Skilled Semi-Skilled Less-Skilled

2008 1864 292,364 132,825 448,002

2009 1426 134,265 84,517 255,070

2010 387 90,621 20,016 279,678

2011 1192 229,149 28,729 208,992

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 2012 812 209,368 20,498 377,120

3.7 Causes of Migration:

Migration from Bangladesh is mostly occurred by the following reasons: Some reasons are given here:

1. Demand for cheap labor in the developed countries.

2. Desire for a better living standard.
3. Poverty and insecurity of livelihood.
4. Scope of better earning in the countries of destination and
5. Increased participation of women in the labor force.

3.8 Women migration:

Women play a vital role in our economy. Now-a-days women are contributed their income to our economy.
They achieved lots success to our country. In the beginning women migration from Bangladesh constituted only
1% up to 2004 after that presently this trend has attained the level of 5%. The number of women migration is
decreasing from 1991 to 1999 even the overall migration declined due to economic crisis worldwide. But the
period of 2000 to 2013 it was increased than before. From 1991 to 2013, more than 270,993 women migrated
to overseas employment in different countries. Presently women’s employment opportunity in the overseas
labor market is mostly confined to some specific occupations like house-keeper (Domestic aide), cleaner,
garment worker, etc. These workers usually come from the village and sub-urban areas with poor economic
background. There is a good demand of women workers in some other trades like nursing, care giving,
cashiering and catering Electronic factory etc.

Table no 07: Last 5 years women migration (from 2009 to 2013)

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 Year Number of employment
2009 22,224
2010 27,706
2011 30,579
2012 37,304
2013 51,071

Figure 06: Last 5 years women migration (from 2009 to 2013)

Last 5 years women migration (from 2009 to 2013)

22,224
Year 2009

51,071
Year2010
27,706
Year 2011

Year 2012
30,579
37,304
Year 2013

3.9 Impact of Remittance on different socio-economic factors:

Remittance is playing an effective role in development of Bangladesh economy through the following
outcomes:

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 1. Poverty alleviation.
2. Economic factor development.
3. Increased purchasing capacity.
4. Meet import financing.
5. Sustain balance of payment.

The relation between migration and remittance are self evident. Both have a strong co-relation to poverty
reduction. Migration is gradually being considered as the development of workers particularly the illiterate and
un-skilled workforce. Remittance is amplified with the foreign currency reserve of the country and reducing the
dependency on overseas development support. It simplified the balance of payment, import financing, adoption
of new development plans and its implementation. It contributes directly in stretch the opportunities to increase
individual income and standard of living. It allows households to enhance their capability in purchasing goods
and services. At the community level, remittances generate multiplier effects in the local economy, creating jobs
and spurring new economic and social infrastructure and services. At the national level, remittances provide
foreign currency and contribute significantly to GDP. Sometime remittance creates motivation and develops
awareness of the migrants towards the investment in education, health and uplifting the standard of living.

3.10 Impact on the Economy of Bangladesh:

In Bangladesh, Remittances shows a positive sign on the social and economic indicators like social security,
nutrition, and investment activities, living condition, housing, education, health care, poverty reduction, of the
recipient households. Bangladesh has been able to avoid any imbalances in BOP current account. Bangladesh is
continuously contributing to the achievement of the Millennium Development Goals. If remittances can be
saved and invested in infrastructures and productive capacity may be these positive impacts become greater.
The benefits of remittance at social level and household level are two implications for development. It has
significant positive impacts on household well-being and economic growth through improved. Remittances
have been continuously playing an important role to the economic growth and the livelihoods of people in
Bangladesh. Remittance income is more valuable for any developing country like Bangladesh. Remittance is the
portion of international migrant workers earnings. The demand of migrant workers’ remittances has now
increased tremendously in Bangladesh in a number of reasons. These are as follows:

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 A. Remittance contributes is a large scale to our national economy by increasing foreign exchange reserve,
per capital income and employment opportunities.
B. It has been continuously rescuing-up the GDP of Bangladesh.
C. The government has been paid various government and non-government import bills and different
foreign debt & donation of installments from the remittance income.
D. Remittance has been continuously keeping the contribution to reduce the poverty of Bangladesh through
generating substantial employment and income.
E. Remittance income helps the government of Bangladesh to reduce dependency on foreign aid.
F. It helps to improve the balance of payment position of Bangladesh.
G. Remittance income makes more strong local currency (Bangladeshi Taka) against US dollar.
H. Remittance also contributes to the expansion of financial market activities and the development of
payment systems.
I. The government of Bangladesh is using remittance income to build schools, colleges, universities
hospitals, roads, & highways, bridges, culverts, etc.
J. Remittance income is positively the socio-economic condition of migrant families.

3.11 Impact of remittance on women development:

At Present time, the contributions of women are too many ways in our country. Contribution of women in the
overall earning of remittance is increasing day by day. Remittance is a direct benefit of the migration for
women workers. Women workers save a big portion of their income and send to the family monthly, yearly or
regular basis. Their remittance is mostly used for development of personal purpose family education and health
affairs which boost the socio-economic development of the country at the micro level.
So all relevant point of view, I can easily say that the impact of remittance everywhere in Bangladesh. It is now
a big portion of our economy so we can think about it that how we can achieve more success in this sector.

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 CHAPTER 4

Findings
&
Recommendations

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 4.0 Findings and Analysis:

In over all foreign remittance sectors I find out some problems: those are given below

1. Most of the time migrants workers are used informal channel like Hundi.
2. Government is unable to handle investors and entrepreneurs.
3. Not only the Middle East country, but also expand other areas of manpower export. There is a lacking of
the government and also from the recruiting agencies to find out more track of employment in other
regions of the world. Even the opportunities for employment have not been fully utilized in the Middle
East country.
4. Many policies of government are not efficient. 
5. Lacking of undocumented workers to send the remittance through legal channel like banks.
6. Language barrier is a major problem to fulfill the formalities in sending the remittance.
7. Transmitting cost and commission of remittance in banking channel is still high.
8. Banking facility is not enough. It was not available at door to door of the migrant workers family.
Distance of banks from residence or work place in sending countries also creates problems. At last they
bear extra charge for withdrawing money.
9. Still huge restriction in going to abroad by the women migrants. Safety issues in carrying money are also
an obstacle.
10. In some countries there is no bank directly linked with any Bangladeshi bank. It needs transaction
through third bank raise the sending cost.
11. Lacking and restriction on sending remittance in full from some countries.
12. Unskilled workers form the majority of the people working abroad. Although their remittances are low,
the total forms the highest amount of income to the country from overseas employment.
13. Migrant workers are not fulfilling abroad demand because they don’t have any training.
14. Government website has not enough data about foreign remittance.
15. Government accent on increasing flow of remittance through Training of skill in different categories and
Human Resource Development, awareness development and simplify the sending mechanism.
16. To the migrant workers hundi is the favored unofficial channel for exchanging an amount of money and
now it is a common practice.
17. Some development countries have come forward to extend their co-operation to the Government of
Bangladesh with a view to helping migration of workers and increasing remittances.

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 18. Bangladesh realizes the importance of overseas employment and the remittances received but the overall
initiatives in main streaming it towards the economy of the country is still not sufficient.
19. Lacking of initiative in negotiating with receiving countries about higher wages for Bangladeshi
workers.
20. Employment opportunities for women workers abroad have not yet expand fully.
21. Action Plan has not yet been prepared for the implementation of the Overseas Employment Policy.
22. There exists miss-match between the demand and supply of skilled manpower in the overseas
employment market both in quantitative and qualitative terms.
23. In our country there is a big issue of polities. In the period of election all the economic sides are badly
damaged.
24. Without Islami bank Bangladesh other commercial banks are not perform as well as in remittance sector.
25. Limited mobility of the women workers is also an impediment to send the remittance freely.
26. Use of Hundi as an unofficial channel for sending money by the migrant workers is still prevailing.
Consequently, the govt. is deprived of a significant amount of valuable foreign currency.
27. Female migrants are usually facing lack of a common understanding on a gender sensitive and right
based approach to employment. This gap exists among both the aspiring migrant workers as well as all
other stakeholders.
28. Lack of online banking system in some banks
29. Delay in payment to the client.
30. Mistakes in writing bank name, branch and account number by the remittance sender.

4.1 Recommendations:

The remittance is the second largest income sector of Bangladesh. The remittance income has also contributed
to help the foreign exchange reserve, per capital income and employment opportunities. If the government
should take the following necessary measures to save the significant income generating sector may be the
remittance will more increased in Bangladesh.

A. Government has been proved that the official channels are more easy and safe to send money from
abroad.

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B. The policy about foreign remittance which is applied by the government should easy and favorable
to the migrant worker and should efficiently collect and organize the data about foreign remittance.
C. Government can hold the attention of potential investors and entrepreneurs by offering them differenet
investment policy.
D. Government can start training for unskilled workers so that unskilled workers can take training to make
them skill and skill workers can make them more expertise.
E. The government should establish information booth or center in Union, Upzila and Zila Parished
throughout the country so that the people can collect relevant necessary information from these booths/
centers.
F. If the government should also establish booth opportunities & facilities in abroad where migrant workers
are employed. If the government could establish these opportunities & facilities for the migrant workers
within and outside the country then the people would be able to reduce their problems and it will create
trust & confidence on government.

G. The government should set-up the certain amount as expenditure that have to be submitted by the
migrant workers to the recruiting agencies and it must be applicable for both the private & public
recruiting agencies. In addition to that the government may provide financial subsidy & bank loan to
migrant workers. However, the government should eliminate additional taxes to workers.

H. The government should establish different training & learning centers so that the migrant workers could
learn about language, behavior, culture, norms, values, behavior, working & geographical environment
and so on before going to abroad. The private recruiting agencies have also to establish different training
& learning centers in order to train –up their sending people before pre departure.

I. The government and private recruiting agencies should send the trained people abroad so that they can
fight & survive with the migrant workers of other countries in their working place.

J. The government should take quick decision to distribute passport according to particular village or
district in a particular day or time. If government could distribute passport from the respective village or
district in particular day or time then the cost and time for getting passport would be more affordable.
The government may use information technologies to facilitate the process.

K. The government should arrange emergency phone numbers and services for migrant workers within and
out the country and should these provide to them so that they contact and seek assistance.

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L. The government and private banks should increase the speed of their services throughout the country
and also decrease the paper work & documentation, which make it very simple & easy for less educated
or illiterate migrant workers to send their remittances through formal channel.

M. The government should take necessary legal actions against those people who are involved with
undisciplined activities in the airports of the country.

N. The government should create investment friendly environment in order to use the remittance money in
productive sector. Otherwise, the large part of the remittance money will spend in consumption purpose
by the family members & relatives of the migrant workers.

O. The government should formulate clear and precise pre-departure legislation so that the migrant workers
can easily understand which will encourage them to follow.

P. Migrant workers face lots of problems in abroad due to lack of information, knowledge & education.
The government and private recruiting agencies should expand their training centers in different parts of
the country in order to reduce this problem. The return workers may help prospective workers by giving
basic knowledge like how to use toilets, how to talk/ behave with employers, how to proceed in the
airport and others, which will minimize the conflicts between employers and migrant workers that
creates a bad reputation of Bangladeshi workers.

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CHAPTER 5

Conclusion

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 5.0 Conclusion:

In Bangladesh 156 million people live in an area of 143,998 sq. km, which means 1,083 persons per sq.km, or
one person per square meter. In terms of population, Bangladesh is the 7th largest country in the world whereas
in terms of GDP its position in the world is 196. About 45% of the population lives below the poverty line and
each year natural calamities like devastating flood, cyclone, drought, etc. push millions of people below the
poverty line. A big percentage of its 70.86 million labors are either unemployed or nominally employed.
Currently, about 6 million Bangladeshis work abroad, and when they send money to their families back home
these are in foreign currencies, and for the government these remittances are one of the most important sources
of foreign exchange earnings. According to the Bangladesh Bureau on Manpower and Training (BMET),
Bangladesh received more than $14.5 billion as remittances in 2013. According BMET, during the last 37 years
(1976-2013) Bangladesh experienced a significant rise in remittance growth -- it was only $23.71 million in
1976 where as it has reached $14.5billion (formal remittance) in 2013. As one of the Least Developed Countries
(LDC), foreign currency is needed for socio-economic development. Remittances help Bangladesh to make
investments for industrial development, modernize its industries by importing high-tech machineries for export-
oriented manufacturing, modernize its agriculture, invest in education, etc. On the one hand, these factors create
more employment in the country and, on the other, help the country to increase its export of manufactured
goods as opposed to agricultural products, raw materials, low quality finished products etc., as they were in the
past. Remittances also help Bangladesh in making the balance of payments favorable, or make up the deficit
between total export and import.
"Remittance has been a key driver of economic growth and poverty reduction in Bangladesh." The migrants
send back billions of dollars and the country can then use these resources for investment for industrial
development, improvement of educational facilities and services, and extend and improve its health services.
The money that is sent back is also beneficial to the families and to the country in that it helps reduce poverty
and also allows for investment in small businesses and chances for furthering education.

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 References

1. Bangladesh Bank 2013. Economic data Bangladesh Bank.

Available at: < http://www.bangladesh-bank.org/econdata/wageremitance.php > [Accessed 11
November 2013]

2. ASSIGNMENT POINT. Definition of Remittance.

Available at: < http://www.assignmentpoint.com/business/economics/definition-of-remittance.html
> [Accessed 9 November 2013]

3. Scribd. Impact of foreign remittance on the economic development in Bangladesh

Available at: < http://www.scribd.com/doc/51867697/Impact-of-foreign-remittance-on-the-
economic-development-of-Bangladesh > [Accessed 11 November 2013]
Available at: < http://abrjournal.weebly.com/uploads/1/1/3/2/11327577/3.13_abr_template.pdf >
[Accessed 10 December 2013]

4. Migrant Workers Remittance and Economic Growth: Evidence from Bangladesh. Md Shoaib
Ahmed.
Available at: < http://www.asaub.edu.bd/data/asaubreview/v4n1sl1.pdf > [Accessed 18 November
2013]

5. http://www.bmet.org.bd/BMET/stattisticalDataAction

6. Bangladesh economic update. Remittance: October 2012.

Available at: < http://www.unnayan.org/documents/Governance%20Capability/MEU_Oct_2012.pdf
> [Accessed 27 November 2013]

End

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