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Outbound remittances remain largely untraceable
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Kazi M Aminul Islam, a former executive chairman of the Bangladesh Investment Development Authority (Bida), said there is a lack of skilled workforce at higher levels that compels the private sector to hire foreign citizens for better output.
He also thinks that the central bank data is inaccurate. “Former finance minister AMA Muhith himself publicly disclosed the actual remittance outflow of around $4 billion to $5 billion per year.”
According to him, the BB records the outflow based on the salaries of the officially appointed experts or consultants. But the amount is nominal in comparison to the salaries paid by the private sector to foreign citizens.
“During my tenure at the Bida, I initiated a move to find out the exact figure of outbound remittance. But it did not complete during my time,” he said.
Islam urged the government to find out the real figure of remittance outflow by carrying out a study.
“It is important to unearth the data to ensure the outflow through the official channel. The government will get tax from it.”
Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, said the record of the BB is unrealistic as the actual remittance outflow is far higher than the official data.
There are a lot of foreigners from India, Sri Lanka, and Pakistan who work in the private sector and at multinational companies, he said.
The private sector depends on foreign employees at the managerial level as they are sincere. On the other hand, Bangladeshis are not skilled and do not work sincerely, Mansur said.
Foreigners send their incomes through the unofficial channel as the private sector does not want to face unnecessary hassles in securing permission, he said.
There are thousands of Chinese citizens employed at various projects and do business in Bangladesh. They earn legally but transfer their earnings through the unofficial channel, said Mansur, also a former senior official of the International Monetary Fund.
Paban Chowdhury, executive chairman of the Bangladesh Economic Zones Authority, said the Beza provides permit to work in the economic zones but it has no authority to keep the record how foreign citizens send their salaries and other allowances to their country.
The employers and government agencies are responsible for ensuring that the outbound remittance goes through the official channel, he said.
Md Sirazul Islam, executive chairman of the Bida, said the agency grants work permits to foreign citizens against the demand of investors.
The Bida does not have data or study on remittance outflow, he said, suggesting that banks could keep the record and provide it to the central bank.
According to him, the Bida has the scope to keep the records of the payments made for technical assistance and royalty.
Zahid Hussain, a former lead economist of the World Bank Dhaka office, said the number of foreigners working in Bangladesh without securing work permits is far higher than those who have the availed the permission.
“So, payments made to them have to be done through informally as there is no other option.”
The economist blamed the complexities in issuing work permits for the situation.
“If the process had been transparent, the foreign workers would have received payments officially and thus sent home the money through official channels.”
Hussain said if skilled workers had been available locally, employers would not have gone for foreign hiring since the latter creates a lot of liabilities for them.
He said if skilled workers are not available locally and companies do not hire them from other countries, production would be hampered. “This would ultimately hurt the economy.”
“The lack of adequate skilled workers also points to the weakness in our education system. Until the country can plug the skill shortage, employers would have to rely on foreign workers.”

Nilphamari farmers pinning hopes on early variety potato
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“It is inspiring to see that Kishoreganj’s early harvested potatoes are taken to vegetable markets in the capital at the very beginning of the season,” said Habibur Rahman.
Traders from Dhaka and other big cities come directly to different villages in Kishoreganj with trucks to purchase early potato in November and December, said Md Farhanul Haque, senior vice-president of Nilphamari Chamber of Commerce and Industry.
“We try to cooperate with them as the crop is harvested here much earlier than other districts in the country,” he added.
Liaquat Ali, sub assistant agriculture officer of Kishoreganj, said this year they target to cultivate the short-duration early variety potato in around 7,000 hectares, up from 6,500 hectares last year.