According to a report published in this daily on Tuesday, the country’s remittance inflow crossed the $20 billion mark in the first 10 months of this fiscal year (FY 2020-21). Remittance inflow crossed the $20 billion mark in a single fiscal year for the first time in the country's history. This has helped the government to breathe a sigh of relief and helped them in order to recover from the economic shocks posed by the pandemic.
Now in order to sustain that, government wants to augment the current cash incentive to further encourage them and discourage the hundi channel for which government loses a huge amount of revenue. Relevant authorities have proposed to increase the remittance incentive to four percent from the existing two percent.
If we can send more skilled workers to new
and potential destinations, the remittance
flow will increase manifold in the future
The idea of increasing incentive worked before and if implanted properly again along with other time befitting measures, country can earn more than $20 billion mark in a fiscal year as more incentive will encourage more expatriates to send their hard-earned money through legal channels.
The government should take necessary steps to increase the speed at which the money can be remitted by the expatriates to their loved ones back home. Therefore, more inward remittance surge will not only help to add to our foreign exchange reserves but will also enhance our balance of payments.
Remittance is perceived to be a driving force for fostering a country’s economic growth. Therefore, if we can send more skilled workers to new and potential destinations, the remittance flow will increase manifold in the future.