Tk1,013cr Project Set to Raise Remittance Flow

The Ministry of Expatriates’ Welfare and Overseas Employment has taken an initiative to implement a new project worth around Tk1,013 crore to help increase remittance inflows and ensure better use of money sent home by migrant workers.

Titled “Leveraging Remittances in Bangladesh”, the proposed project focuses on three key areas: training family members of remittance earners, simplifying remittance transfer procedures, and reducing the cost of sending money through formal channels.

According to officials, around 3.41 lakh family members in 31 districts will receive training under the project. The goal is to raise awareness among remittance-receiving families so that the money sent by expatriates is used more productively for household welfare and the national economy. Around Tk440.82 crore has been proposed for this component.

Another major part of the project is aimed at making remittance transfers easier and more accessible for Bangladeshi workers abroad. Plans include expanding banking services and ensuring faster, more reliable transactions through trusted financial institutions. About Tk300 crore has been earmarked for this purpose.

The project also seeks to lower the cost of sending money home, as many migrant workers still face charges and service fees when using legal channels. A separate Tk250 crore allocation has been proposed to reduce transfer costs.

The Wage Earners’ Welfare Board under the ministry will implement the project, with a target to complete it within three years.

Officials said a preliminary project proposal has already been sent to the Planning Commission for policy approval. Once cleared, it will be forwarded through the Economic Relations Division (ERD) to development partners in an effort to secure foreign financing, particularly from the Asian Development Bank (ADB).

If external funding is not available, the government may consider implementing the project with its own resources.

Officials said the initiative is designed not only to support expatriates but also to guide their families at home, so remittances are not wasted on unnecessary or unproductive spending. The training is expected to focus on responsible financial management, savings and long-term economic benefits.

The project also aims to encourage more expatriates to send money through formal channels such as banks and mobile financial services by making the process faster, easier and cheaper. Institutions including Probashi Kallyan Bank and other reliable banks are expected to be involved.

Experts say the initiative is both timely and necessary, as remittances remain one of the country’s most important sources of foreign currency.

A remittance sector expert said awareness among migrant families is critical, as simply receiving money is not enough if it is not used effectively. He also stressed the need to discourage illegal channels such as hundi or hawala, which continue to pose a major challenge.

He suggested creating a central database of expatriate workers so the government can communicate directly with them when necessary. He also pointed to manpower shortages at Bangladeshi embassies abroad, saying stronger staffing and improved services would help make the remittance system more efficient.

On transfer costs, he noted that even small service charges can place a heavy burden on low-income workers. He proposed introducing digital platforms where expatriates could compare exchange rates and fees across banks, helping improve transparency and competition.

Stakeholders say the project could play an important role in boosting remittance inflows and ensuring better use of migrant workers’ hard-earned income, provided it is implemented effectively with expert input and practical oversight.

Remittances continue to play a vital role in supporting Bangladesh’s foreign exchange reserves and easing pressure on import payments, making the initiative particularly significant at a time of economic strain.