Bangladesh could create jobs and strengthen local economies by directing funds from overseas workers into small and medium enterprises (SMEs), according to the International Organization for Migration. The approach would spread the benefits of migration beyond individual households, officials said at an event marking International Day of Family Remittances.
Remittances fuel economic growth but face spending challenges
Funds sent by Bangladeshi migrant workers have become essential to the country’s economy, said Hasan Ahmed Chowdhury Kiran, chairman of Debate for Democracy. He noted these transfers have improved foreign exchange reserves and boosted local economic activity.
About a quarter of Bangladesh’s working-age population depends on jobs abroad. Without these opportunities, the poverty rate would rise by roughly 10 percentage points. Migrant families have gained better standing in their communities, allowing many to escape poverty.
Kiran pointed out that most remittances go toward daily expenses rather than investments. He urged policies that guide migrants and their families to put money into productive areas, especially SMEs, to build long-term economic security.
IOM urges structured investment to maximize impact
Dr. Laura Tomm-Bond, IOM Bangladesh Chief of Mission, said safe migration practices could increase the positive effects of remittances. “Each transfer shows the effort and determination of Bangladeshi workers,” she said. “Putting even a small part of these funds into SMEs can create jobs, support local economies, and open doors for the future.”
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IOM is working with the Bangladeshi government to improve migration policies and protect workers overseas. The group views remittance investment as a way to ensure development lasts beyond short-term financial help.
A shadow parliament debate in Dhaka examined strategies for supporting migrant families. The winning team, from Dhaka International University, backed SME investment as the strongest option. Judges, including journalists and academics, assessed the debate on practicality and economic effects.
Dr. Ishita Shruti, IOM Bangladesh’s Head of Migration Policy and Sustainable Development, opened the event. Debate for Democracy and the European Union co-organized it. Participants received awards at the end.
Efforts to redirect funds could benefit from broader economic planning that addresses multiple priorities at once.
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