The number of Bangladeshi workers departing for overseas employment fell to a five-year low in the fiscal year 2025-26, signaling a sustained contraction in a critical source of foreign currency for the South Asian economy.
The decline reflects weakening demand from Middle Eastern employers amid ongoing uncertainty following the US-Israel war on Iran.
This drop in labour migration exacerbates pressure on Bangladesh’s balance of payments, as remittances have historically served as a primary buffer against external deficits.
The contraction is not isolated to Bangladesh; broader regional data indicates that new labour permits across South Asia fell nearly 19 percent as job opportunities shrank in Gulf countries and labour regulations tightened.
The trend underscores the vulnerability of South Asian economies to geopolitical shocks in West Asia.
With the Gulf region accounting for a significant share of overseas employment, any escalation in regional tensions or regulatory shifts directly impacts household incomes and national foreign exchange reserves.