Incentives and hassle free remittance help the increase of economic growth
Dhaka: Finance Minister AHM Mustafa Kamal has said that there has been an incredible growth in remittances as incentives and the hassles of sending remittances through legal channels have been reduced.
He made the remarks in response to a question from reporters after a meeting of the Cabinet Committee on Public Procurement on Wednesday (September 2) through Zoom Apps.
Even in Corona, expatriates sent about 50 per cent more remittances in July and August than last year, he said. In July and August of this year, the growth in remittances was 50 percent. Last year was the highest earning year in terms of remittances. Last year, 18 billion dollars in remittances came. This is an incredible increase of 50 percent over last year. What I got in six months has come in two months.
The finance minister said, we want the entire amount of remittance income to come to the country legally. When I was the planning minister, I did a study on my own initiative. The study found that 51 per cent of remittances came through legal channels and 49 per cent through illegal or hundi channels. From then on, I started thinking that 100% of remittances should be legalized. That’s why we did two things. One is to provide incentives at the rate of 2 percent on remittances. This incentive has worked to increase remittances. And the second is that sending remittances legally before was very complicated. Various questions were asked, now I have made them easy. No one has been questioned about remittances in the last one year. No one's remittance was hit. That is why remittances have increased so much.
He further said, expatriates are supporting us by earning money with great difficulty. Besides, they are getting stronger themselves. I thank them on behalf of the Prime Minister because they have started sending their hard earned money legally. You send remittances legally. You will get the benefits one day or another. '
According to the Bangladesh Bank report, remittances sent by expatriates in the second month of the current financial year in August was 196.39 crore US dollars. In July this year, expatriate Bangladeshis sent remittances amounting to 259.95 lakh dollar. As a single month which is the highest remittance collection in the history of Bangladesh. Earlier, the highest record remittance came in June this year. In that month, remittances came to 183 crore 30 lakh dollars.