Bangladesh’s economic stability depends heavily on foreign currency reserves. These reserves are essential for importing fuel, machinery, raw materials, food products, and technology. They protect the country during global economic shocks and ensure currency stability. Over the past decades, remittance from overseas workers has been one of the strongest pillars supporting Bangladesh’s foreign exchange reserves.
However, there is a critical question that must be addressed:
Is Bangladesh maximizing the economic potential of its migrant workforce?
The answer lies in skill development. Skilled manpower export — rather than low-skilled labor migration — can significantly strengthen Bangladesh’s foreign currency reserve and transform its economic resilience.
The Importance of Foreign Currency Reserve
Foreign currency reserves are the backbone of macroeconomic stability. They help:
- Stabilize the national currency
- Pay for imports
- Service external debt
- Maintain investor confidence
- Manage trade imbalances
When reserves decline, the economy faces pressure: currency depreciation, inflation, higher import costs, and reduced investor trust.
Therefore, strengthening foreign currency reserves is not optional — it is essential for economic sovereignty.
Remittance plays a central role in maintaining this reserve.
Remittance: A Lifeline of Bangladesh’s Economy
Bangladesh is one of the top remittance-receiving countries in the world. Millions of Bangladeshi workers contribute to the economy by sending money home from abroad.
Remittance:
- Supports millions of families
- Reduces poverty
- Boosts rural development
- Strengthens banking liquidity
- Increases foreign currency supply
However, most migrant workers are engaged in low-skilled jobs such as general labor, domestic work, and basic construction. While their contribution is immense and honorable, the income level per worker remains relatively low.
This is where transformation is necessary.
The Income Gap Between Skilled and Unskilled Workers
The difference between skilled and unskilled manpower is not small — it is dramatic.
For example:
- A low-skilled worker may earn $300–$500 per month.
- A certified technician or healthcare professional may earn $2,000–$4,000 per month.
- An IT professional or specialized engineer may earn even more.
If Bangladesh upgrades even a portion of its migrant workforce to skilled categories, remittance inflow can multiply significantly without increasing the number of workers abroad.
Higher skill means higher income.
Higher income means stronger foreign currency reserve.
From Labor Export to Skill Export
Bangladesh must move from a labor-exporting nation to a skill-exporting nation.
Labor export focuses on quantity.
Skill export focuses on quality and value.
The global labor market is increasingly demanding:
- Certified technicians
- Electrical and mechanical specialists
- Healthcare professionals
- IT developers
- Automation operators
- Renewable energy technicians
Countries in the Middle East, Europe, East Asia, and North America require skilled professionals.
If Bangladesh aligns its training system with global demand, the economic return will be transformational.
The Multiplier Effect on Foreign Currency Reserve
Skilled manpower export creates multiple economic advantages:
- Higher Remittance per Worker
- Increased Banking Deposits
- Strengthened Foreign Exchange Liquidity
- Reduced Pressure on National Currency
- Improved Credit Rating
When remittance increases, the central bank gains stronger control over exchange rate stability.
A stable currency reduces inflation pressure.
Inflation control protects purchasing power.
Thus, skill export indirectly strengthens domestic economic stability.
Reducing Dependence on External Borrowing
Countries with weak foreign currency reserves often rely on external loans from international institutions.
Strong remittance inflow reduces:
- Dependence on IMF support
- External borrowing pressure
- Sovereign risk perception
Skilled manpower export strengthens national financial independence.
A country with strong reserves negotiates better in international trade and finance.
Strengthening Trade Balance
Bangladesh imports:
- Fuel
- Machinery
- Industrial raw materials
- Technology
- Consumer goods
These imports require foreign currency.
If remittance from skilled workers increases, it offsets trade deficits.
A stronger inflow of foreign currency improves the balance of payments.
This supports long-term economic sustainability.
The Role of Technical and Vocational Education
To achieve this transformation, investment in Technical and Vocational Education and Training (TVET) is crucial.
Bangladesh must:
- Modernize training institutes
- Introduce international certification standards
- Partner with global training bodies
- Encourage industry-linked apprenticeship
- Provide language and cultural training for migration
Skill development must be market-driven.
Training programs should align with global workforce demand, not outdated curriculum.
Quality training ensures global competitiveness.
Digital Skills: A New Frontier of Export
Skilled manpower export is no longer limited to physical migration.
Digital skill export is a powerful opportunity.
Bangladesh’s youth can provide:
- Software development
- Graphic design
- Digital marketing
- Data analysis
- Cybersecurity services
through remote platforms.
This generates foreign currency without migration cost.
Digital freelancing and IT outsourcing can significantly strengthen reserves.
The global digital economy offers enormous potential.
Protecting Migrant Workers Through Skill
Skilled workers are generally less vulnerable to exploitation.
They receive:
- Better contracts
- Legal protections
- Higher bargaining power
- Professional growth opportunities
Improved worker welfare ensures stable remittance flow.
Protection of workers protects the national economy.
Women in Skilled Migration
Encouraging women to participate in skilled professions such as healthcare, IT, and education abroad can diversify remittance sources.
Inclusive skill development strengthens both social and economic stability.
Women’s participation increases household resilience and national income.
Global Examples of Skill-Based Economic Growth
Countries like:
- Philippines (skilled healthcare workers)
- India (IT professionals)
- South Korea (industrial technicians)
have significantly strengthened foreign reserves through skilled manpower export.
Bangladesh can follow similar pathways.
The global market values competence.
Competence commands premium wages.
Premium wages strengthen foreign currency reserves.
Policy Recommendations
To maximize the benefit of skilled manpower export, Bangladesh should:
- Establish national skill mapping aligned with global demand
- Introduce internationally recognized certification programs
- Improve English and foreign language training
- Negotiate bilateral labor agreements for skilled categories
- Provide financial incentives for skill training
- Strengthen overseas employment governance
- Encourage remittance through formal banking channels
Strategic coordination between education, labor, and foreign affairs ministries is essential.
Skill export must be treated as national economic strategy.
Long-Term Economic Impact
Skilled manpower export does more than increase remittance.
It:
- Transfers global knowledge back home
- Encourages domestic industrial modernization
- Improves productivity standards
- Promotes technological adoption
- Strengthens entrepreneurial mindset
Workers returning with advanced experience contribute to domestic growth.
Skill export becomes skill import.
This knowledge cycle accelerates national development.
Transforming 180 Million People into Strength
Bangladesh’s population is its greatest asset.
If unskilled, it creates economic pressure.
If skilled, it becomes economic power.
Strengthening foreign currency reserve through skilled manpower export requires:
- Vision
- Investment
- Policy reform
- Quality training
- International collaboration
The path forward is clear.
Bangladesh must shift from exporting labor to exporting expertise.
Conclusion: A Strategic Economic Imperative
Foreign currency reserve stability is fundamental to Bangladesh’s economic security.
Skilled manpower export offers a sustainable and scalable method to strengthen reserves.
Higher income per worker leads to:
- Greater remittance
- Stronger banking liquidity
- Improved currency stability
- Reduced economic vulnerability
In a competitive global economy, skill is power.
Bangladesh must invest in its people — because people are the nation’s most valuable resource.
By prioritizing skilled manpower export, Bangladesh can:
- Strengthen its foreign currency reserve
- Enhance economic independence
- Build global competitiveness
- Secure long-term prosperity
The future of Bangladesh’s economic resilience lies not in population size — but in population skill.
The time to act is now.
