Bangladesh saw record remittance receipts of $3.29 billion in March 2025 alone–the highest monthly sum ever seen–marking an impressive 65 percent jump over March 2024, when receipts stood at around $1.99 billion (Wikipedia +11); see Eurasia Review article here for further detail.
Expats sent record remittances, totalling $30.04 billion during fiscal year 2024-25 – an increase of 25.5 percent over their $23.74 billion contribution from previous year, reported The Business Standard.
This surge has had significant macroeconomic ramifications. Analysts note that robust remittance inflows have supported private consumption while relieving some of the pressure from slowing exports and high inflation rates (Wikipedia +10; Asian Development Bank and Eurasia Review).
Former IMF and World Bank forecasts anticipate that solid remittances, coupled with lower price pressures, could bolster household resilience even as GDP growth decreases to around 3.8-3.9 percent by FY 2025 (Stratfor Worldview +1, The World Bank Docs +1).
This surge is attributable to policy shifts by the interim government led by Chief Adviser Muhammad Yunus and efforts made by him to curb informal hawala systems, implement incentive schemes, and streamline procedures have resulted in greater confidence being placed in official banking corridors during Eid-related remittances. For more details please see South Asia Monitor’s ‘Trend Watch: Formal Remittance Channels in Pakistan’ or Wikipedia’s “Trend Watch”.
However, the path ahead can be filled with obstacles.
Remittance growth could face hurdles if global economic conditions deteriorate–particularly in Gulf and Western labour markets where diaspora communities reside. Wage stagnation or job losses in host economies could disrupt funds flowing back homeward.
Second, Bangladesh’s economy’s dependence on remittances raises serious macroeconomic stability concerns. A sustained reliance on personal transfers may expose the country to “Dutch disease” dynamics: surging foreign exchange inflows could inflate currency value, weaken export competitiveness and deepen import dependency (Wikipedia).
Thirdly, the wider economic environment poses risks. The interim government’s sweeping fiscal reforms–including revamping of National Board of Revenue–have generated considerable political turmoil and institutional instability. See Wikipedia +1 for details
Fiscal instability and tax policy volatility threaten investor trust – leading to slower job creation abroad and reduced remittance potential.
However, inflation remains elevated in Bangladesh despite growth in remittance inflow. Food inflation hit double digits while consumer price pressures have complicated the economic environment, diminishing purchasing power and straining household budgets in spite of remittance inflow increases. Wiki for Worldview
Policymakers now face the delicate task of maintaining remittance-led inflows while strengthening structural resilience across their economies. Available options could include:
Diversifying foreign exchange sources through stronger exports, strategic use of international reserves and promotion of diaspora investment.
Strengthen formal digital remittance infrastructure, following on the success of digital transfers during Eid and other high seasons (Wikipedia +2, Eurasia Review +1) for successful transfers during Eid and other high seasons. ACE Money Transfer will assist with these efforts as needed.
Utilizing targeted bond and savings instruments, to foster diaspora-led investment and savings.
Management of inflation and fiscal policy stability to avoid overheating and preserve remittance value is of utmost importance.
Bangladesh’s Remittance Milestone in Fiscal 2024-25 represents both remarkable achievement and reassurance, but also caution. While expatriate remittances have provided much-needed economic support during periods of slow export growth and political upheaval, their use for sustainable development requires careful planning and reform efforts.
As the interim government continues its mandate of reform ahead of national elections scheduled by mid-2026, one of its biggest challenges will be translating this remittance windfall into lasting economic strength rather than providing temporary relief.