Remittance falls 8pc in May

Remittance fell 8.33 percent year-on-year to $1.21 billion in May as low oil prices continue to erode the incomes of the Middle Eastern countries that host the most Bangladeshi migrant workers.

In the first 11 months of the outgoing fiscal year, Bangladesh received remittance worth $13.45 billion, down 3.37 percent year-on-year. April's receipts fell 7.75 percent year-on-year, according to data from the central bank.

With a decline in crude oil prices impacting the fortunes of the oil exporters, remittance from workers in the Middle East appears to have contracted, the World Bank said in a report recently.

About 68 percent of Bangladeshi migrant workers reside in the Gulf Cooperation Council countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- which have been hit by the slump in oil prices.

These workers had accounted for 64 percent of last fiscal year's record of $15.32 billion in remittance receipts.

Remittance income has not accelerated although manpower exports went up significantly in recent months. Some 311,642 Bangladeshis went abroad for jobs in the first six months of 2015-16, up 43.2 percent from a year earlier.

Remittance sent by more than eight million migrant workers play a crucial role in the country's economy, helping reduce the overall incidence of poverty as well as maintain a healthy balance of payments.

It has helped reduce the poverty level in Bangladesh by 1.5 percent, according to the WB. It also accounts for about 66 percent of the country's foreign currency reserves, providing Bangladesh with a strong and stable external position.