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Published : 22 Jul 2026, 09:50 AM
Economy's Lifeline
New record: Overseas Bangladeshis have sent home $35.60bn, the highest annual total on record.
What's next: Economists say stronger export earnings remain vital despite the remittance surge.
Big ambition: Former Bangladesh Bank governor Ahsan H Mansur says annual inflows can reach $50 billion
Bangladesh's crisis-hit economy owes its momentum to migrant workers, whose labour and sweat continue to keep the nation's dreams alive.
The country received a record $35.60 billion in remittances in the 2025-26 fiscal year, which ended on Jun 30, up 17.34 percent from the previous fiscal year.
That figure becomes even more significant when set against how this five-decade journey began.
No official data is available on remittance inflows during the first three to four years after independence.
According to the Bangladesh Economic Review 2025, remittances through formal banking channels began arriving in FY1975-76.
That year, migrants sent home $10 million, worth around Tk 150 million at the exchange rate of the time.
The survey does not record how many Bangladeshis were living abroad at the time.
As the years passed, Bangladeshis went abroad in search of work to countries across West Asia and beyond, with that number now exceeding 15 million.
As overseas migration expanded, remittance inflows kept climbing, eventually crossing the $35 billion mark in the last fiscal year.
In local currency, the amount stands at roughly Tk 4.35 trillion, almost half the size of the national budget.
The journey, however, has been anything but smooth.
Remittances, one of the economy's most important indicators, have suffered setbacks at different times and have frequently become part of political debate.
Following the 2024 July Uprising, the Awami League government promoted remittance growth as evidence of its economic success.
During the subsequent 18 months under the interim administration, rising inflows were again highlighted as an achievement.
The current BNP government has also embraced the same narrative.
Conversely, whenever remittance inflows have slowed, governments have come under fire from political opponents.
During the July Uprising, many social media users urged expatriates not to send money home as a form of protest.
Foreign exchange reserves, another key measure of economic strength, had already become a source of concern during the final months of the Sheikh Hasina administration.
Those worries continued after the Muhammad Yunus government assumed office in August 2024.
The surge in remittances has since eased that pressure.
As of Jul 19, Bangladesh's reserves stood at around $32.02 billion under the Balance of Payments (BPM-6) calculation, while gross reserves totalled $36.68 billion.
That is enough to cover about five months of imports.
The picture is less encouraging elsewhere.
Export earnings, another major source of foreign currency, declined by around 1 percent in the last fiscal year compared with the previous one.
Meanwhile, foreign loans and foreign direct investment (FDI) have remained below expectations.
Economists and bankers warn that if remittance inflows weaken for any reason, reserves could once again come under pressure.
$50bn 'Within Reach'
Former Bangladesh Bank governor Ahsan H Mansur believes the country can raise annual remittance inflows to $50 billion within the next few years.
Speaking to bdnews24.com, he said: "We are now receiving $35.60 billion. There is still room for expatriates to contribute more. I believe we have the capacity to reach $50 billion, but a significant portion of remittances is diverted through other channels.
"If expatriates send money directly through Bangladeshi companies or channels linked to Bangladeshi banks, there will be little scope for those funds to leak elsewhere. If that happens, reaching $50 billion will not be difficult."
He also stressed the need to export more skilled workers.
"I believe this is where the greatest emphasis should now be placed."
Explaining why, he said: "The Philippines has a per capita income around three times higher than ours because its people have much stronger English-language skills.
“When I worked in the United States, including at the World Bank, I found administrative assistant positions in many major organisations were largely held by Filipinos. These are highly attractive jobs, yet South Asians are barely represented."
According to Mansur, Bangladesh continues to lag behind in service-sector employment because of shortcomings in education and mindset.
"There is huge global demand for nurses, yet we do not have enough skilled professionals. Policymakers must recognise the importance of these issues."
Warning Against Complacency
Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), warned against becoming complacent because of the recent jump in remittance inflows.
He said, "Remittance inflows are undoubtedly strong. One could say they are keeping the economy afloat. But assuming they will continue rising indefinitely would be a mistake. Global conditions are changing rapidly.
“The Iran conflict has entered a new phase. Remittance flows could come under pressure at any time. Even in June, the final month of the last fiscal year, inflows remained below $3 billion."
He also pointed to weak export earnings.
"Exports have struggled for quite some time and the last fiscal year ended with negative growth. If remittance inflows also decline, reserves will inevitably fall, with broader consequences for the economy."
Mustafizur said the new government must focus on strengthening exports alongside remittances.
"My advice is not to become complacent. The government needs effective measures to raise export earnings as well as sustain remittance growth."
"It is true that reserves have increased because remittances have grown. But weaker imports have also contributed,” he added. “Foreign loans and assistance are not arriving as before.
“If imports begin to rise while export earnings fail to keep pace, remittances alone will not be enough to maintain comfortable reserve levels."
Role in the Economy
The World Bank publishes annual data on remittance flows around the world.
According to its latest figures, remittances accounted for 7.4 percent of Bangladesh's gross domestic product (GDP) in 2025, the highest level in a decade.
The contribution stood at 10.6 percent in 2012 before falling steadily to 5.1 percent in 2016.
It has gradually recovered over recent years to reach 7.4 percent.
World Bank data also placed Bangladesh seventh among the world's top remittance recipients in 2025.
It moved up from eighth place in 2024, overtaking China, and retained seventh position in 2025 after receiving $33.88 billion in remittances.
India remained the world's largest recipient, with $150.71 billion.
Mexico ranked second with $64.39 billion, followed by the Philippines with $41.56 billion.
Egypt received $41.52 billion to take fourth place, while Pakistan ranked fifth with $40.48 billion.
France came sixth with $40.40 billion.
China ranked eighth after receiving $30 billion, followed by Nigeria with $22.78 billion.
Guatemala completed the top 10 with $21.64 billion.
