Expat dreams dimmed by budget shadows
Tk1b special fund proposed to create young entrepreneurs
Rajib Kanti Roy, Dhaka
Published: 02 Jun 2025
Despite promising to focus on developing a skilled workforce for the global job market, the government has proposed a reduced allocation for the Ministry of Expatriates’ Welfare and Overseas Employment in the 2025–26 national budget.
The ousted government allocated Tk1,140 crore in the revised budget for FY2024–25, but the amount has been reduced to Tk855 crore in the proposed budget for FY2025–26. There has also been no increase in the 2.5% cash incentive offered on remittances sent by Bangladeshi expatriates.
“The Ministry of Expatriates’ Welfare and Overseas Employment likely had the lowest budgetary allocation last time. Now, even with a new government in place—and despite the vital role expatriate workers played in the movement that led to the fall of the Awami League—the allocation has been reduced further,” said Shakirul Islam, chairman of the Ovibashi Karmi Unnayan Program (OKUP), speaking to the Daily Sun.
“This is a clear case of negligence toward expatriate workers and an example of discrimination against them,” he added.
The migration expert noted that they have long been advocating for the government to double the remittance incentive to better support expatriate workers and accelerate remittance inflows. However, he said these calls have been repeatedly ignored.
“Like in previous years, expatriate workers had hoped for an increase in the remittance incentive, but that expectation has once again ended in disappointment,” he added.
Shakirul also expressed frustration over the lack of initiatives to ensure legal and financial protection for expatriate workers.
In his televised speech on the proposed 2025–26 budget, Finance Adviser Dr Salehuddin Ahmed focused primarily on the government’s commitment to maintaining support for the existing 70 Technical Training Centres (TTCs) at the district level and 40 TTCs at the upazila level, as well as plans to establish 50 new TTCs in additional upazilas.
He also mentioned that the interim government has taken steps to introduce internationally recognised technical training certificates by developing a curriculum designed to prepare young people for the demands of both domestic and global labour markets.
“Efforts are underway to establish linkages between industries, training institutes, and academia to ensure job placement by assessing demand, developing curricula based on that demand, and delivering education and training accordingly,” he said.
The adviser said that to sustain the growing trend of developing skilled human resources, a special programme is being implemented to connect export-orientated and small and medium enterprises with global high-value chains, enhance their competitiveness, and provide training to 220,000 people across various professions.
Stating that the government has spent Tk651.37 crore to ensure continued productivity by resolving labour unrest in the industrial sector since the fall of the Sheikh Hasina government, he said the annual wage increment rate for the industrial sector has been increased from 5% to 9%, effective from December 2024, in light of prevailing high inflation.
Special fund of Tk1b proposed to create young entrepreneurs
Dr Salehuddin Ahmed announced the creation of a special fund of Tk100 crore for young entrepreneurs—the first of its kind—and proposed providing training and credit facilities to 9 lakh youths by 2028.
“I propose to create a new fund of Tk100 crore for the young entrepreneurs. This is the first time such a fund is going to be created. Besides, a project has been undertaken to create employment opportunities by providing training and credit facilities to 9 lakh youths by December 2028,” he said in his speech on the proposed budget for the 2025-26 fiscal year.
The adviser said his government is working to develop a pool of skilled youth and create self-employment opportunities by utilising their immense energy and potential.
Keeping that in mind, the government has increased the allocation.
In his televised speech, Dr Salehuddin said, “To create self-employment, the ceiling of youth loans given to trained youths across the country has been increased to a maximum of Tk2,00,000. The loan ceiling for successful young entrepreneurs has been increased to Tk5,00,000.”
Highlighting different pro-youth activities of the interim government, the adviser said freelancing training activities have been started for 28,800 educated and job-seeking youths in 48 districts of the country since January this year.
According to him, self-employment projects have been implemented to support the families of those injured or martyred during the July uprising.