Remittance outflow issue

FINANCE Minister AMA Muhith underlined an issue of considerable import at a pre-budget discussion with the Economic Reporters' Forum (ERF) on Saturday. He flagged a concern over remittance outflow to the tune of $4 billion per year. Government was 'worried', he added, inasmuch as such a high amount of outward remittance tended to affect the country's current account balance.

We think the finance minister has voiced a timely concern because (a) the issue, so far figuring only tentatively in the public domain, merits fuller discussion and deeper analysis; and (b) it has not become unwieldy as yet, thus allowing for reining in under some regulatory but not stifling mechanism.

With the economy growing and diversifying, the demand for employment in the high skill category has increased. The gaps in our human resource development efforts and the brain drain from the country have induced foreigner employment in the skill-intensive professions. Hence, the consequent repatriation of large sums of money from their incomes and Bangladesh is one of the big sources of remittance for neighbouring India.

There are standard procedures for such employees to be registered in the host country with work permits being issued to them for a stated period which are extendable. Questions have, however, arisen whether taking advantage of the slack in monitoring many have been working without authorisation in Bangladesh. A thorough survey resulting in a reliable, updated data base is highly imperative.

The bottom line though is we have to address the core issue of human resource development in the higher skill categories.