'Free visa' scams drained over Tk30,000cr extra from Bangladeshis to Gulf in 2022: Study
The study found that this massive financial loss stems from post-arrival extortion, inflated recruitment fees, and hidden costs faced by migrants who travel under “free visa” schemes
Bangladeshi migrants in Gulf Cooperation Council (GCC) countries lost an estimated Tk30,000 crore in 2022 alone due to unethical and fraudulent recruitment practices under so-called "free visa" arrangements — an amount equivalent to 0.54% of Bangladesh's total GDP that year, according to a new study by the Ovibashi Karmi Unnayan Program (OKUP) revealed today (19 October).
The study found that this massive financial loss stems from post-arrival extortion, inflated recruitment fees, and hidden costs faced by migrants who travel under "free visa" schemes.
The Tk30,000 crore in additional expenses was effectively siphoned off to destination countries, representing costs inflated by three to six times the official migration rates.
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The report warns that the total economic loss poses a significant macroeconomic threat, eroding remittance earnings and draining potential national investment.
Titled "A Critical Assessment of Remittance Drain: Unveiling the Macroeconomic Consequences of Bangladesh's 'Free Visa' Migration," the study was unveiled at a hotel event in Dhaka. It surveyed 1,084 migrants from eight migration-prone districts between late 2023 and mid-2024.
Among the respondents, 51% migrated to GCC countries through so-called "free visa" channels. Of these, 57% eventually obtained official work permits without additional payments, while 21% had to pay an average of Tk148,880 to secure their permits.
Another 4% paid around Tk44,000 to find jobs, and a similar portion spent roughly Tk48,889 on return flights after job failures. Additionally, all migrants faced unavoidable pre-employment living costs — including food, rent, and accommodation — averaging Tk30,000 before receiving their first salary.
In total, the study estimated Tk30,027 crore in costs borne by Bangladeshi workers in GCC countries in 2022. When compared with Bangladesh's GDP of Tk55.22 trillion ($460.13 billion), this loss accounts for over half a percent of the national economy.
OKUP Chairperson and lead researcher Shakirul Islam said the findings reveal not just individual hardships but a macro-level capital drain.
The report highlights three key consequences:
Lost national investment: Billions of taka that could have supported local enterprises or education are drained through unregulated channels.
Eroded remittance capacity: High-interest loans taken to pay fraudulent recruitment fees reduce remittance inflows, as much of the income goes into debt repayment.
Capital flight: The Tk30,000 crore in illicit payments acts as unrecorded outbound capital, bypassing the formal banking system and weakening financial integrity.
The findings underscore how systemic recruitment malpractice continues to undermine Bangladesh's migration economy.
In 2022, around 11.35 lakh workers went abroad, of whom 9.38 lakh migrated to GCC states, according to Bureau of Manpower, Employment and Training (BMET) data.
The term "free visa," the study noted, is misleading — it is neither free nor legally recognised. Instead, it serves as a tool for exploitative networks, inflating migration costs, pushing families into debt, and draining remittance inflows.
Neyamot Ullah Bhuiyan, senior secretary of the Ministry of Expatriates' Welfare and Overseas Employment, attended the event as the chief guest. He said the findings could serve as a roadmap for reform in the migration sector.
Highlighting the report's revelations, he noted that 54% of recruitment was carried out through illegal sub-agents, stressing the need to bring the sector under a transparent and accountable ecosystem.
The study, conducted under the Strengthened and Informative Migration Systems (SIMS) project, was funded by the Embassy of Switzerland in Bangladesh and supported by Helvetas Swiss Intercooperation Bangladesh.
