Governor calls for joint efforts to cut high remittance costs from KSA

Bangladesh Bank Governor Dr. Ahsan H. Mansur on Tuesday called for coordinated action between the financial sectors of Bangladesh and Saudi Arabia to reduce the high cost of remittances from  KSA.

“The cost of sending remittances from Saudi Arabia is disproportionately high as the expatriates are paying between 6 to 10 percent which imposes a heavy burden on them,” he said at inauguration of Saudi Arabia-Bangladesh Business Summit 2025 at a hotel in the capital.

Governor Mansur said Saudi Arabia is Bangladesh’s largest source of remittances, making it a crucial stream of foreign currency inflow.

He urged both countries’ central banks, financial institutions, and relevant agencies to collaborate in creating a more efficient and low-cost money transfer system.

Highlighting Bangladesh’s economic prospects, the Governor said the country’s economy currently stands at half a trillion dollars and is on track to become a trillion-dollar economy.

Bangladesh is remarkably resilient and despite natural, political, and global shocks, our growth has never been negative, and for the past 30 years, it has never fallen below 3.5 per cent, he said and urged the Saudi investors to consider long-term investments in Bangladesh.

BNP Standing Committee Member Amir Khosru Mahmud Chowdhury was present as a special guest at summit organised by the Saudi Arabia-Bangladesh Chamber of Commerce & Industry (SABCCI).

Khosru said, “Our goal is to upgrade the capital market from a ‘Frontier Economy’ to an ‘Emerging Market.’ Saudi funds can play a significant role in this transition.”

He urged collaboration beyond the traditional energy and textile sectors.

In his welcome address, SABCCI President Ashraful Haq Chowdhury highlighted the formation of the first joint business chamber between the two countries in 53 years.

He outlined plans to expand Bangladeshi exports of textiles, ready-made garments (RMG), agricultural goods, IT services, and skilled manpower while boosting Saudi investment in Bangladesh’s infrastructure, logistics, and IT sectors.

Presenting a paper, Dr. M. Masrur Reaz, Chairman of Policy Exchange, highlighted untapped trade and investment potential between the two countries, noting that neither currently ranks among the other’s top five trading partners.

He identified Bangladeshi exports with high potential, including RMG, agro-processed goods, leather products, footwear, plastics, and pharmaceuticals.

Saudi Arabia, in turn, could expand exports and investments in mineral and chemical products, LNG, fertilisers, renewable energy, and logistics, he said.

Dr. Reaz said among 2.1 million Bangladeshis employed in Saudi Arabia, only 22 per cent are skilled workers.

He suggested joint ventures with Saudi training and educational institutions to increase the share of skilled workers for unlocking major economic potential.

The summit included an exhibition and product showcase featuring 20 Bangladeshi companies.

A 20-member Saudi delegation attended the exhibition and the closing ceremony.

The event also drew businessmen, academicians, and trade experts.