[Bangladesh] Migrant workers will have access to social security and easy loans

[Bangladesh] Migrant workers will have access to social security and easy loans
01 Apr 2022

Bangladesh’s Government intends to ensure social security for returnee migrants struggling with socio-economic problems. It has also decided to provide aspiring migrants with easy and low-cost loans to relieve their financial stress while seeking work abroad, The Business Standard reports.

The state-owned Probashi Kallyan Bank (PKB) has decided to lower the interest rate of migration loans to 8 per cent, a change which will come into effect in July. The bank was established in 2011 to support overseas job-seekers, it will also simplify the lending procedure.

The changes reportedly followed the prime minister's directives to make loans hassle-free and cheaper for overseas job-seekers at a time when the country's remittance earnings have been on the decline for several months.

Meanwhile, sources in the government said the expatriates' welfare ministry is preparing a policy framework to help migrant workers reintegrate into economic activities when they return home.

The state-owned Jiban Bima Corporation earlier entered into talks with a Saudi Arabian company regarding insurance for all Bangladeshis working in the Middle East against deaths and workplace injuries under its Probashi Kormi Bima.

Expatriate workers have enriched the central bank's reserves with their hard work providing sufficient foreign currencies to absorb external financial shocks. These workers were among the hardest hit by the COVID-19 pandemic as several hundred thousand of them were forced to come back home empty-handed after losing jobs. 

The PKB, which is mandated to give loans to migrant workers, was tasked with standing by the returnee migrants who were faced with financial hardships.    

However these targeted beneficiaries hardly gained from the initiative at all, prompting Prime Minister Sheikh Hasina to ask the authorities concerned to ensure easy loans from the PKB so that job-seekers do not need to resort to selling land to go abroad.

At a cabinet meeting on February 7, the Prime Minister instructed the expatriates' welfare ministry to make the overseas employment process transparent and carry out extensive mass media campaigns to inform overseas job-seekers of the exact employment authorities and the total expense needed to go abroad.

"As per instructions from Prime Minister Sheikh Hasina, we have decided to ease the process of the migration loan. In the first stage, the board of the bank has decided in principle to decrease the interest rate to 8 per cent from 9 per cent," PKB Chairman Ahmed Munirus Saleheen said.

"The decision would come into force in July this year. We are even thinking of implementing the decision before July."

Addressing concerns that many people are still not aware of the loan, he said more initiatives are now being taken to raise public awareness in this regard.

National Reintegration Policy

In spite of their outstanding contribution to the economic development of the country, expatriate Bangladeshis have yet to be covered by any government social security programme to offer support for these workers if they fall into crises of different sorts – including physical, psychological, social, and economic ones – after returning.

The government has now taken initiatives to ensure social security for this group and will formulate a "Comprehensive National Reintegration Policy".

Nasreen Jahan - joint secretary to the expatriates' welfare ministry - said her ministry has already started working on the policy, which will be universal in nature.

"Opinion is being sought from various ministries and divisions of the government for the formulation of the policy. The views of civil society members, private development agencies, and experts in the relevant fields will also be taken before framing the policy," she said.

The authorities aim to complete the policy formulation by this year, Ms Jahan said, adding the implementation work will start thereafter.

Meanwhile, initiatives have reportedly been taken to train 200,000 migrants who have returned home during the pandemic to establish them as entrepreneurs or provide them with employment opportunities abroad under a project funded by the World Bank.

The Wage Earners' Welfare Board is implementing the project. The World Bank is providing $200 million funding for it.

Officials at the Wage Earners' Welfare Board said work is underway to compile a list of 200,000 returning expatriates in 32 districts.


Source: The Business Standard

(Quotes via original reporting)

Bangladesh’s Government intends to ensure social security for returnee migrants struggling with socio-economic problems. It has also decided to provide aspiring migrants with easy and low-cost loans to relieve their financial stress while seeking work abroad, The Business Standard reports.

The state-owned Probashi Kallyan Bank (PKB) has decided to lower the interest rate of migration loans to 8 per cent, a change which will come into effect in July. The bank was established in 2011 to support overseas job-seekers, it will also simplify the lending procedure.

The changes reportedly followed the prime minister's directives to make loans hassle-free and cheaper for overseas job-seekers at a time when the country's remittance earnings have been on the decline for several months.

Meanwhile, sources in the government said the expatriates' welfare ministry is preparing a policy framework to help migrant workers reintegrate into economic activities when they return home.

The state-owned Jiban Bima Corporation earlier entered into talks with a Saudi Arabian company regarding insurance for all Bangladeshis working in the Middle East against deaths and workplace injuries under its Probashi Kormi Bima.

Expatriate workers have enriched the central bank's reserves with their hard work providing sufficient foreign currencies to absorb external financial shocks. These workers were among the hardest hit by the COVID-19 pandemic as several hundred thousand of them were forced to come back home empty-handed after losing jobs. 

The PKB, which is mandated to give loans to migrant workers, was tasked with standing by the returnee migrants who were faced with financial hardships.    

However these targeted beneficiaries hardly gained from the initiative at all, prompting Prime Minister Sheikh Hasina to ask the authorities concerned to ensure easy loans from the PKB so that job-seekers do not need to resort to selling land to go abroad.

At a cabinet meeting on February 7, the Prime Minister instructed the expatriates' welfare ministry to make the overseas employment process transparent and carry out extensive mass media campaigns to inform overseas job-seekers of the exact employment authorities and the total expense needed to go abroad.

"As per instructions from Prime Minister Sheikh Hasina, we have decided to ease the process of the migration loan. In the first stage, the board of the bank has decided in principle to decrease the interest rate to 8 per cent from 9 per cent," PKB Chairman Ahmed Munirus Saleheen said.

"The decision would come into force in July this year. We are even thinking of implementing the decision before July."

Addressing concerns that many people are still not aware of the loan, he said more initiatives are now being taken to raise public awareness in this regard.

National Reintegration Policy

In spite of their outstanding contribution to the economic development of the country, expatriate Bangladeshis have yet to be covered by any government social security programme to offer support for these workers if they fall into crises of different sorts – including physical, psychological, social, and economic ones – after returning.

The government has now taken initiatives to ensure social security for this group and will formulate a "Comprehensive National Reintegration Policy".

Nasreen Jahan - joint secretary to the expatriates' welfare ministry - said her ministry has already started working on the policy, which will be universal in nature.

"Opinion is being sought from various ministries and divisions of the government for the formulation of the policy. The views of civil society members, private development agencies, and experts in the relevant fields will also be taken before framing the policy," she said.

The authorities aim to complete the policy formulation by this year, Ms Jahan said, adding the implementation work will start thereafter.

Meanwhile, initiatives have reportedly been taken to train 200,000 migrants who have returned home during the pandemic to establish them as entrepreneurs or provide them with employment opportunities abroad under a project funded by the World Bank.

The Wage Earners' Welfare Board is implementing the project. The World Bank is providing $200 million funding for it.

Officials at the Wage Earners' Welfare Board said work is underway to compile a list of 200,000 returning expatriates in 32 districts.


Source: The Business Standard

(Quotes via original reporting)

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