Bangladesh recorded its highest-ever remittance inflows in the April-June quarter of FY25, underscoring the resilience of overseas earnings even as migration slowed and reliance on Gulf economies deepened.
Official data from Bangladesh Bank published on Tuesday show that remittances reached $8.54 billion in the final quarter of FY25, a 6.7 percent increase from the prior three months and 25 percent higher than the same quarter last year.
For the fiscal year as a whole, inflows climbed to an unprecedented $30.32 billion, marking a 26.8 percent jump from FY24.
Much of the growth was fuelled by transfers from the Gulf region, which accounted for nearly half of total inflows. Saudi Arabia led all countries, sending $1.49 billion during the quarter – nearly double the amount from a year earlier. The United Arab Emirates, the United Kingdom, and Malaysia followed, while remittances from the United States fell sharply, down 45 percent from the prior quarter.
Bangladesh Bank officials say the shift stems from a change in how remittance sources are recorded. Previously, the central bank logged the country of the aggregator company that processed the transfer as the “source country,” regardless of where the money originated. Under the new method, remittances are now attributed directly to the country from which expatriates send their earnings.
At the same time, US remittances have fallen, which officials partly attribute to a 5 percent tax on remittance transfers imposed by the Trump administration.
Meanwhile, banks remained the primary conduits for inflows. Private commercial banks handled 62 percent of transfers, led by Islami Bank Bangladesh PLC, which collected $1.39 billion, representing 16.3 percent of the total market share.
Among state-owned institutions, Agrani Bank PLC received $964 million (11.3 percent), while Janata Bank PLC handled $601 million (7 percent) and Sonali Bank PLC $484 million (5.7 percent). Bangladesh Krishi Bank, a specialized lender, accounted for another $826 million (9.7 percent), making it one of the top five channels.
Collectively, the ten largest banks absorbed more than 70 percent of total remittance flows during the quarter.
Bangladeshi officials credited favourable exchange rates and policy incentives, including a 2.5 percent cash bonus on remittances sent through official channels, for the surge in transfers.
“These measures have clearly steered more expatriates toward banking routes, boosting transparency and formal flows,” the report said.
The momentum in remittances comes despite a decline in outbound migration. The Bureau of Manpower, Employment and Training reported that just 155,383 workers left the country during April-May, compared to 160,303 in the first two months of the year.
Roughly two-thirds of these migrants headed to Saudi Arabia, highlighting the risks of heavy reliance on a single labour market.
Analysts warn that while record inflows are stabilizing the country’s external balance, Bangladesh must diversify both its migrant destinations and remittance sources to avoid overexposure.
“Expanding into non-traditional markets and upgrading worker skills could be key to sustaining growth,” said Policy Think and Economic Research Centre Chairman Md Mazedul Haque.
