Remittance flow to Bangladesh grew marginally in April from a month earlier as low oil prices, weak global economic growth and fiscal tightening in the Middle East continue to hurt the key source of foreign exchange.

Some $1.09 billion flew in as remittance, up 1.9 percent from March but down 8.4 percent year-on-year, according to Bangladesh Bank statistics.

In fiscal 2016-17, remittance inflow has been lower in every month from a year earlier, meaning the full-year receipts could be way below last fiscal year's $14.93 billion.

April's receipts take fiscal 2016-17's tally to $10.28 billion, down 16.08 percent year-on-year.

Globally, remittance has fallen.

Workers' remittances to developing countries fell for a second consecutive year in 2016, a trend not seen in the last three decades, said the World Bank's Migration and Development Brief last month.

The WB said low oil prices and weak economic growth and fiscal tightening in the Gulf Cooperation Council countries and the Russian Federation were taking a toll on remittance flows to South Asia and Central Asia.

Besides, weak growth in Europe reduced flows to North Africa and Sub-Saharan Africa.

The decline in remittances, when valued in US dollars, was made worse by a weaker euro, British pound and Russian ruble against the US currency.

Remittances to Bangladesh slumped 11.1 percent to $13.7 billion in 2016, as per the WB report.

The amount though made Bangladesh the eighth largest remittance recipient of the year.

Remittance is the largest source of foreign exchange in Bangladesh after exports.

Money sent by Bangladeshi workers, which accounted for about 6 percent of the gross domestic product in fiscal 2015-16, also supports growth through their impact on household income and consumption.

Remittances accounted for about 30 percent of current account receipts in fiscal 2014-15, more than offsetting the trade deficit.

However, inflows have declined as labour demand from the GCC economies, the source of about 55 percent of all remittances, has eased, said global credit rating agency Moody's last month.

The ratings agency expects remittance flows to stabilise near current levels, and potentially pick up in line with future increases in global oil prices.

It said an increase in Bangladeshi overseas worker emigration in 2016 should provide some support to inflows later this year.

“Nonetheless, if the current trend of falling remittances does persist, it would likely have a negative credit impact by dampening consumption and widening the current account deficit.”

Moody's expects the recent decline in remittances, along with a rise in import demand, to result in a very small current account deficit of about 0.2 percent of GDP in fiscal 2016-17.

In January, the BB said the recent decline in remittance reflects a combination of global and local factors. But, it was mainly driven by weaker economic activities in the Middle East.

The slow growth in remittance flow stands in stark contrast to the huge number of people taking jobs overseas in recent years.  

In 2016, some 749,249 workers went abroad compared to 555,881 a year earlier, according to the Bureau of Manpower, Employment and Training.

The Global Human Development Report suggested Bangladesh set up a remittance bank for easy and transparent inflow of foreign wage earnings into the country.

As the Asia and the Pacific region faces a water crisis with its demand being projected to see about 55 percent rise by 2050, the Asian Development Bank (ADB) is going to double its funding on water security issues in 2017 of which Bangladesh is likely to get a good chunk.

"The ADB's assistance in the pipeline in the water sector for 2017 for the Asia and the Pacific region will be $4.2 billion which was $2.4 billion last year," said Amy Leung, Deputy Director General and Chief Thematic Officer of the ADB, at a briefing on 'Securing Asia's Water' at the Pacifico Yokohama on Wednesday prior to the launching of the 50th Annual Meeting of the ADB billed for May 4-7, 2017.

As breakup for the sub sectors, the Manila-based lending agency is going to provide the highest 38 percent of its overall allocation, totaling $ 1.5 billion, for the water sector in the current year to irrigation and drainage followed by 35 percent or $ 1.4 billion to water supply, sanitation and waste management.

Of the allocation, the hydropower generation will get around 13 percent or $ 530 million, followed by the water resources, management, wetlands, and watershed protection with 9 percent or $365 million and flood management with 6 percent of $256 million.

 According to the Country Operations Business Plan (COBP) of ADB for Bangladesh for the year 2017-2019, the multilateral lending agency is likely to come up with around $990 million assistance against seven priority projects on water security over the next three years.

Of these, the ADB has made an overall allocation of $ 250 million for Bangladesh in 2017, including $ 100 million for the flood and riverbank erosion risk management investment programme (tranche 2) followed by $ 150 million for the 3rd urban governance and infrastructure improvement project (additional financing).

For the next year, Bangladesh is set to get $ 150 million ADB financing for the city region economic development investment programme (tranche 1) followed by $ 210 million for the rural infrastructure maintenance programme.

The ADB will come up with $ 80 million assistance for the flood and riverbank risk management investment programme (tranche 3), followed by $ 150 million assistance each for the Ganges-Kobadakh irrigation project and for Dhaka Sewerage Management System Development Project in the year of 2019.

Highlighting the water security issues in the Asia and the Pacific region, Amy Leung said its people are facing a critical situation on water security as the water demand is projected to increase by 55 percent in the region by 2050 due to the growing demand from the domestic and industrial sector.

She also said by this time, the demand of food will grow by 50 percent while that of energy by 66 percent. "The population growth alongside economic growth will increase the demand of water," she said adding, "It's very urgent that we need to have coordinated efforts on water."

Noting that climate finance is still very low by the ADB which was only $ 518 million in adaptation and $ 33 million in mitigation in 2016, Amy said this is one area where the ADB is looking forward to provide much more support.

Quoting the Asian Water Development Outlook (AWDO) for 2016, she said with increasing climate vulnerability, up to 3.4 billion people could be living in water-stressed areas of Asia by 2050.

In total, some 2,495 water-related disasters struck Asia between 1995 and 2015, killing some 3.32 lakh people and affecting 37 lakh more.

South Asia has the lowest score for resilience to water-related disasters, notably Bangladesh and India. Several countries increased resilience between 2013 and 2016, including Pakistan and the Philippines.

About the ADB's engagement in the water sector in 2017, she said it will scale up and expand its water sector operations as it will push to promote innovative and transformative technologies in water sector projects. "We expect that the water projects to get assistance by about 50 percent more in the coming year."

Mentioning that some 29 out of the 48 countries are out of the water security in the Asia and the Pacific region, the ADB Deputy Director General said about 30-40 percent increase of water demand in all areas like agriculture, industry and domestic use will result in the lowest per capita use of water by many of the Asian countries in the coming days.

She said, "All of us need to be more responsible to ensure more efficient use of water."

Replying to a query, Amy said all water-related issues like water insecurity, inefficient use of water, increasing demand and dirty water have technical solutions. "All we can manage if we've the right governance system."

She said water leakages happen a lot in pipes and if these poorly managed pipes are managed, it will be possible to provide water to another 150 million people without building new facilities. "Asset management and good governance is probably the most important thing to ensure more secured water security in this region."

Replying to another question about the conflict of water sharing of the trans-boundary rivers, she said this is a 'political issue' and the ADB's support is being extended only to the knowledge side making the countries concerned to be aware of.

She also informed that the ADB is going to provide $2 billion over the next four years for the Yangtze River in China to revitalise and improve the river while GIS-based integrated water information project will be introduced for the first time in Pakistan.

Later, making a PowerPoint presentation on the livable cities initiatives, Technical Adviser (Urban) of the Sustainable Development and Climate Change Department of ADB Vijay Padmanabhan said the fund is also being provided for building resilience of vulnerable communities of Bagerhat and Patuakhali in Bangladesh.

Rajshahi, Correspondent :
Rajshahi Krishi Unnayan Bank (RAKUB) commits to bring all its 379 branches under computerization by the end of this 2016-17 fiscal through the best uses of Information and Computer Technology (ICT) aimed at bringing more dynamism into service delivery activities.
The specialized bank has adopted the online banking plan in order to reach the banking services towards the clients' doorsteps in country's northwest region along with bolstering its foundation in the era of globalisation.
RAKUB authority revealed this while launching computerized banking activities in Huzripara Branch under Paba Upazila in the district yesterday afternoon.
RAKUB has been operating its banking activities as the largest development partner in all 16 northwest districts of Rajshahi.

Malek Mollah, Director of Al-Arafah Islami Bank Limited, inaugurating \'Service Month 2017\' from 2nd to 31st May 2017 at its Motijheel Branch in the city on Wednesday. Kazi Towhidul Alam, Deputy Managing Director of the bank was also present.

Ahmed Kamal Khan Chowdhury, Managing Director of Prime Bank, inaugurating the commercial operation of Anwar Auto Rice Mill (Unit-2) at Chapai Nawabganj on Wednesday. Abdul Wahed, Former President, Chamber of Commerce & Industries, Chapai Nawabgonj, Md. Ra