A Study on Performance and Challenges of Remittances Inflows in Bangladesh

Bangladesh witnessed a surge in remittances inflow since 2002, especially as measures had been taken to encourage remitters to send their money through official channels. The multifaceted benefits generated from remittances include increasing the living standards of recipient households, easing national saving-investment and exports-imports gap, and the building up of foreign exchange reserves. Reaping continuous benefits from remittances depends on addressing two key issues, namely increasing number of remitters, particularly skilled and professionals and maintaining the sustainability of remittances inflow. Though the remittances inflow into Bangladesh is increasing and is proportionate to the growth in world remittance flows, continued increases are not guaranteed. This paper attempts to analyze the present performance of remittances inflows in Bangladesh as well as investigate the challenges in the acceleration of remittances inflows. The paper also suggests coherent policies that can facilitate smooth emigration, ensure sustainable remittance inflow and divert a significant share of received remittances into productive sectors aiming at achieving higher growth, generation of employment, and alleviation of poverty