'Free visa' scams drained over Tk30,000cr extra from Bangladeshis bound for Gulf in 2022: Study
In Bangladesh’s migration context, so-called “free visa” schemes have become a vehicle for fraud and exploitation.
Bangladeshi migrant workers 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.
The amount is equivalent to 0.54% of Bangladesh's total GDP that year, according to a new study by the Ovibashi Karmi Unnayan Program (OKUP), unveiled at a Dhaka hotel today.
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.
Although the term "free visa" originally refers to a legitimate policy in which employers or governments cover the costs of the visa and airfare to reduce the financial burden on migrant workers, the study notes that this concept has been widely distorted in practice.
In Bangladesh's migration context, so-called "free visa" schemes have become a vehicle for fraud and exploitation.
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"The term 'free visa' is entirely misleading – it is neither free nor legally recognised," the report noted. "It typically involves migrants paying inflated, off-the-books fees to intermediaries for visas that are not linked to a bona fide, pre-arranged job and lawful work authorisation."
The findings suggest that the additional Tk30,000 crore in expenses was effectively siphoned off to destination countries, an amount separate from the already inflated migration costs that are three to six times higher than the official rates.
The report warns that such losses pose a serious macroeconomic threat, undermining remittance inflows and draining potential domestic investment.
Cost burden, survey findings
The study, titled "A Critical Assessment of Remittance Drain: Unveiling the Macroeconomic Consequences of Bangladesh's 'Free Visa' Migration," 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, while the remaining 49% were recruited on visas for specific sectors, such as agriculture, cleaning, and manufacturing.
Of the free visa holders, 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.
According to the study, the average recruitment cost for migrants who paid extra for post-arrival regularisation stood at approximately Tk650,695. For those who incurred additional expenses to legalise their status, the total cost rose to Tk722,450 – about 67% higher than their annual household income, the study found.
OKUP Chairperson and lead researcher Shakirul Islam said the findings expose not only individual hardship but also a macro-level capital drain.
The report identified three major 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.
As the chief guest at the report's unveiling event, Neyamot Ullah Bhuiyan, senior secretary of the Ministry of Expatriates' Welfare and Overseas Employment, 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 ministry is committed to ensure transparency in the sector," he added.
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.
