Dhaka, Bangladesh
Remittance of first four months surges by 6.9 pc

Remittance of first four months surges by 6.9 pc

The remittance of the first four months till October in the current fiscal 2017-2018 surged by 6.9 per cent more compared to the remittance in the corresponding period of the last fiscal 2016-2017, reports BSS. Finance Minister Abul Mal Abdul Muhith said this while replying to a query from treasury bench lawmaker M Mamunur Rashid Kiron of Noakhali-3 in the house in the city on Tuesday. The remittance of the first four months from July to October in the current fiscal fetched at 4,550 million US dollars which is 6.9 per cent more compared to the remittance of the corresponding period in the last fiscal, he said. The monthly remittance received by Bangladesh dropped in September by 39 percent to $853 million, which is the lowest in five and a half years. In August, the expatriate remitted over $1.41 billion while the previous lowest of $928 million was recorded in February 2012. The flow of remittance in the first quarter of the current fiscal year, however, rose by 4.37 percent to around $3.39 billion. Bangladesh Bank spokesperson Shubhankar Saha said that usually the expatriates send less money after Eid. “That’s what happened in September,” he said. The amount of money sent by non-resident Bangladeshis in July and August grew by 16 percent year-on-year to $2.53 billion this year after a nosedive to a six-year low of $12.77 billion in the last fiscal year. The World Bank in a recent report said remittances to developing countries declined for the second straight year in 2016. Taking notice of the report, Finance Minister AMA Muhith had said the government had taken measures to increase remittances. The International Monetary Fund has lowered its growth forecast for Saudi Arabia, the largest source of Bangladesh’s remittance, for next year. Bangladesh receives the bulk of remittances from six Middle-East countries—Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain. Money sent by the expatriates contributes to 12 percent of Bangladesh’s GDP. Earlier, Bangladesh started the fiscal 2017-18 on an upbeat note by posting growths in both exports and remittance inflow in the first two months. Exports fetched the country $6.84 billion in July and August, which is around 14 percent more than the same period last financial year and nearly 8 percent more than the target set in the budget. To top it off, the amount of money sent by expatriate Bangladeshis grew by 16 percent year-on-year to $2.53 billion after a nosedive to a six-year low of $12.77 billion in the last fiscal year. Economists and exporters are seeing the growths as a good sign for Bangladesh’s economy. Bangladesh Institute of Development Studies researcher Zaid Bakht said, “Export did not grow so well last year. Remittance dropped around 15 percent...Now, the good position of the two indices will impact our economy positively.” According to data released by the Export Promotion Bureau, the country exported goods worth $3.2 billion in July and $3.64 billion in August. As usual, the exports grew on readymade garments that contributed $5.52 billion or over 83 percent of the total figure. Bangladesh Garments Manufacturers and Exporters Association Vice President Mahmud Hasan Khan Babu was happy with the growth in exports. He, however, was worried over the drop in the prices of garments. “It will need at least three to four months to understand the condition,” he said. The government targets to export $37.5 billion in the current financial year. Last year, the country exported goods worth over $34.65 billion with a growth of 3.39 percent against a target of $37 billion.

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