Finance Minister AHM Mustafa Kamal has sought innovative advice from experts to increase expatriate income.

He asked for this advice while addressing the chief guest at the PFM Summit-2023 at Sonargaon Hotel on Monday (September 25).

Finance Minister AHM Mustafa Kamal said that specific reasons should be found as to why remittances are not increasing. A solution must be found. That is why we seek innovative advice from those who are economists, who are experts in this sector. If you propose or suggest reforms to fix the remittance flow, we will accept it.

He said, currently many people are going out of the country. But remittances are not increasing in that proportion. So the government is looking for structural reforms to increase expatriate income. That is why I call upon the concerned to come forward with innovative suggestions. If the expatriate income is increased, all the ongoing problems of the economy can be solved.

The finance minister also said that now the youth are settling abroad with scholarships. Workers are also going abroad legally. But remittances are not coming to the country in that proportion. If remittances come in the same way as before, then economic problems will be solved.

The workshop was chaired by the Secretary of the Ministry of Finance Khairuzzaman Majumdar. World Bank's Country Director for Bangladesh and Bhutan Abdullaye Sek and South Asia Practice Manager of World Bank's Governance Global Practice Hishas Weli were special guests.

Earlier, a panel discussion on restructuring of public financial management took place around 11 am. The negotiators were five former finance secretaries. They are - Md. Zakir Ahmed Khan, Dr. Mohammad Tarek, Md. Fazle Kabir, Mohammad Muslim Chowdhury, Abdur Rauf Talukder.

Export earnings have suffered major setbacks for two consecutive months amid the dollar-crisis. The rate of decline in export earnings in the recently concluded November is 6.05 percent. And in October, the export of goods decreased by 13.64 percent.

The Export Promotion Bureau (EPB) released the figures on Monday (December 4).

According to the statistics published by the Export Promotion Bureau-EPB, products worth 478 crore 48 lakh dollars were exported in November. In the same month last year, the amount was 509 crore 26 lakh dollars. In the previous month of October, the export of goods was 376 crore 20 lakh dollars, which was 13.64 percent less than the same month of 2022. Export income has been negative for two consecutive months.

The entrepreneurs of the main export product of the country said that their orders are decreasing. Its impact is evident in the latest figures on export earnings.

Adding the November figures, exports in the first 5 months of the current financial year 2023-24 have been worth 2,223 crore dollars, which is only 1.30 percent more than the same period (July-November) of the previous financial year. During this period, exports fell short by 9 percent compared to the target.

An analysis of EPB data shows that exports of most products except ready-made garments have declined. These include frozen food, jute and jute products, home textiles, engineering products etc.

According to EPB data, in the first 5 months of the current financial year, 1 thousand 884 crore dollars worth of garments have been exported. This export is 2.75 percent more than the same period of last financial year. Export of knitwear has increased by 8.66 percent among ready-made garments during the period under review. However, the export of oven garments decreased by 4.5 percent.

Foreign debt in the country has increased by 349 crore dollars in the last one year. In sum of Tk. 38 thousand 940 crores. In June last year (2022), the total foreign debt position was 9 thousand 545 crore dollars. And in June of this year, it has increased to 9 thousand 894 crore dollars.

During this period the amount continues to rise despite massive repayment of foreign debt. During the discussion period, long-term loans increased, short-term loans decreased.

These data were obtained from a research report of the central bank published on Sunday (December 3). The report was prepared on the basis of data till June last on foreign credit and investment.

According to the report, compared to June 2022, the foreign debt status of the country has increased in June this year. Foreign direct investment or FDI coming into the country has decreased. And the investment status of Bangladeshi entrepreneurs abroad has also decreased slightly.

In June 2022, long-term debt was 7,480 crore dollar. And in June of this year, it has increased to 8290 crore dollars. In June last year, short-term loans were 2,650 crore. And in June of this year, it decreased to 1603 crore dollars. In recent times this debt has further reduced.

According to sources, there has been a severe dollar crisis in the country for the past one and a half years. This crisis has been exacerbated by short-term foreign debt repayments. But overall short-term debt has decreased but now long-term debt has increased. As a result, the overall gross external debt position has increased, which may put further pressure on the dollar for repayment.

However, the central bank believes that the flow of dollars in the market has increased. The deficits that were there earlier have now reduced. Long-term debt repayments will not put additional pressure on the dollar.

From the report, it can be seen that despite the increase in foreign debt, the growth rate has decreased. In June 2021, total debt rose by more than 19 percent. In June last year, it decreased to 17 percent. In June this year, it further reduced the loan growth rate to 3.70 percent.

Compared to June of last year short-term loans decreased by 22.30 percent and long-term loans decreased by about 10.80 percent in June this year. In June last year (2022), short-term loans increased by 47 percent and long-term loans by 11 percent.

The data of the report also shows that in the fiscal year 2021-22, FDI came to the country at 344 crore dollars. 325 crore dollars came in the last financial year. FDI decreased by 5.52 percent during the period under discussion. Of the total FDI, only 800 crore dollars came as capital from abroad. The rest is reinvested from the profits of foreign companies operating in the country and loans from one company to another.

FDI came as reinvestment from profits earned by foreign companies operating in the country to the tune of 237 crore dollar. Only 80 crore dollars came as loans from one company to another.

In the last financial year, the highest net capital came from the United States of 260 million. All together came to 29 million dollars. In the fiscal year 2021-22, US investment came to 26 crore dollars. Investments from the country have declined over the past year.

The investment status of Bangladeshi entrepreneurs abroad was 40 crore dollars in June last year, it has slightly decreased to 38 crore dollars in June this year. During the discussion period, the investment status of Bangladeshi entrepreneurs abroad decreased by 2 crore dollars.

The decision to depreciate the dollar has had an impact on expatriate income. In the recent month of November, Bangladeshi expatriates living in different countries sent remittances worth 193 million dollars. In Bangladeshi currency the amount is Tk. 21 thousand 181 crore 75 lakh (equal to 109 taka 75 paisa per dollar). In the previous month (October), expatriates sent remittances worth 197 million 75 million dollars.

This information is known from the updated report published by Bangladesh Bank on Sunday (December 3).

According to the central bank data, the largest number of remittances in November came through private commercial banks. Through 41 banks of this sector, expatriate income came to 172 million 66 million dollars which is 89.46 percent of the total remittance sent in a month. In November, remittances through five state-owned banks reached 144.42 million dollars. At this time remittances equivalent to 53.1 million dollars came through the specialized Bangladesh Agricultural Bank. And through 6 foreign banks operating in the country, expatriates sent remittances of 5.9 million dollars.

Among private commercial banks, Community Bank and Citizen Bank could not collect remittances last month. Expatriates did not send remittances through the state-owned Bangladesh Development Bank. Among the foreign banks, Habib Bank, National Bank of Pakistan and State Bank of India could not bring in expatriate income to the country in November.

Bank officials said that the banks are able to buy dollars at a higher price to overcome the crisis. With the government's 2.5 percent incentive on expatriate income, banks are able to buy dollars at an additional 2.5 percent higher price. Now remittances in the country through legal channels are getting a total incentive of 5 percent. As a result, every dollar of expatriate income is now available at Tk. 115.

Meanwhile, in the first month of the current fiscal year 2023-24, remittances came in  197 million dollars. After that, expatriate income decreased for two consecutive months. 1.6 billion dollars came last August due to the dollar crisis. And in the month of September, expatriate income suffered a major setback. In that month, the lowest expatriate income in the last 3 and a half years or 41 months came to Bangladesh, amounting to 1.34 billion dollars. Earlier, in April 2020, 109 million remittances came. Then came 197 million dollars in October.

Since the beginning of the Russia-Ukraine war, there has been a dollar crisis in the country. Since then, due to dollar-crisis with commercial banks, Bangladesh Bank has been selling dollars from the reserve in order to keep the import of energy and daily commodities normal. This increases the pressure on the reserves.

According to the data, Bangladesh Bank sold 13.58 billion or 1 thousand 358 million dollars from reserves in the financial year 2022-23. And in the 5 months of the current fiscal year 2023-24, more than 6 billion dollars have been sold from the reserve. In this, the reserve has decreased by more than 6 billion in 6 months. In other words, 1.2 billion dollars is decreasing from the reserve every month.

At the beginning of the last financial year, Bangladesh Bank imposed strict conditions on imports when there was a dollar crisis in the country. At this time, 100% margin is given on the import of luxury goods, except for everyday goods. This reduces settlement and payment of LCs.

A new layer of gas has been found in well number- 10 of Sylhet gas field. Engineer Mizanur Rahman, Managing Director of Sylhet Gas Field Limited confirmed to Barta24.com that 1.5 crore cubic feet of gas will be available from this layer.

He told Barta24.com that there was success during DST from the well expected to get 1.5 crore cubic feet of gas per day from the new layer. Drilling of the well started last June.

Excavation of well number- 10 of Sylhet is going to be implemented with the own financing of Gas Development Fund and Sylhet Gas Fields Limited. For this reason, an agreement was signed with Sinopec International Petroleum Service Corporation, China on September 11 last year with the gas field company.