Reintegration steps for migrants to be of little use: Experts

• Around 4.8 lakh migrants returned home amid pandemic                                      
• Only 2.6% took out reintegration loans 
• Government provided Tk700 crore low-interest loan facility for returnees                 
• Probashi Kallyan Bank distributed Tk298.16 crore in loans among 12,767 returnees till July 2021 
• Experts critical of a Tk427 crore new reintegration project 

The government's reintegration initiatives for 4.8 lakh returnee migrants amid the Covid-19 pandemic have not been very effective so far due to coordination gaps, say experts. 

One of the initiatives is providing reintegration loans. This has elicited a very poor response among returnees as only 2.6% of them took out this loan in the one year till July 2021. This loan is provided by Probashi Kallyan Bank (PKB).

Stakeholders are now critical of a new project approved by the Executive Committee of the National Economic Council (Ecnec) on 28 July under the Wage Earners' Welfare Board. The project is aimed at reintegrating around two lakh migrants between 2021 and 2023 at a cost of Tk427.3 crore. 

CR Abrar, executive director of the Refugee and Migratory Movement Research Unit, said the pandemic had greatly impacted business. 

He said all returnees cannot be entrepreneurs as training, social connections, market access, financial literacy, etc., are needed to be businessmen.  

Starting a business is not easy for all returnees even through using bank loans as they have to pay installments amid the pandemic, he said. 

"That is why we observe that taking out PKB loans has not generated a great response among returnees," he added. 

He further said the needs and orientations of all returnees are not the same. 

"Some have skills that they can use to get suitable jobs. Some have savings, and they want to invest in reliable financial schemes." 

Under the new project, each of the two lakh migrants will receive a one-time cash support of Tk13,500. 

Besides, some of them will be allocated Tk5,000 each to receive training at reputed training centres. This will turn them into skilled workers for overseas jobs.  

Moreover, 23,500 returnees will be selected depending on their skills, and they will also be trained. After that, they will be given assistance in getting jobs at home and abroad. 

Shariful Hasan, head of Brac Migration Programme, is doubtful about whether the one-time cash support of Tk13,500 is enough for a returnee's reintegration.   

He said the money would be spent in a month or two. "What will happen then?"

Returnees should be trained so that they can gain skills, he said. 

"But after receiving training, they will need seed money to become entrepreneurs. Where will they get that? In this aspect, there is scope for coordination among many projects of the government and non-government organisations," he explained. 

He noted that a trained returnee can get a loan from PKB. "So, coordination is needed among these projects."                                                    
CR Abrar also said there is a lack of coordination in reintegration initiatives.                             
He suggested involving non-government organisations in the process to develop a more effective reintegration programme.                                                  

After the 28 July Ecnec meeting, Dr Shamsul Alam, state minister for planning, told reporters nearly five lakh migrants had come back home due to the pandemic. 

He said the government would work in 32 districts to reintegrate two lakh returnees under the project.                               

Planning Minister MA Mannan said all returnees would receive various benefits in phases. 

Of the Tk427 crore project, the World Bank will provide Tk425 crore, and the rest will come from the government.                                 

Why reintegration loans got poor response?
  
PKB distributed Tk298.16 crore among 12,767 returnees till July this year from the government's Tk700 crore special reintegration loan fund, according to Md Jahangir Hossain, general manager of the bank. 

In his FY21 budget speech, Finance Minister AHM Mustafa Kamal said the government would expand the system of distributing low-interest loans among returnees to engage them in business and self-employment activities in rural areas, such as agriculture, agriculture-related production and services, and small and cottage industries. 

To support this initiative, the government has created a low-interest loan facility of Tk500 crore, which will be distributed through PKB, he said.

Apart from this loan, the government has set up a Tk200 crore fund from the Wage Earners' Welfare Board. Loans from this fund will also be distributed by PKB among returnees.

PKB is giving returnees loans of Tk1-5 lakh at 4% interest. Those receiving loans will enjoy a grace period ranging from a month to a year before the repayment process begins. A returnee can borrow a maximum of Tk2 lakh without collateral.

According to a rapid study conducted by Ovibashi Karmi Unnayan Programme last year, around 80% of returnees were keen to reintegrate, but the number of loan recipients was still very poor.

The main goal of the loan distribution programme could not be met due to a lack of manpower at PKB, communication, promotion, and a very short grace period for repayment, said the study.

PKB started disbursing loans among returnees in July last year and till December, it had disbursed Tk12 crore. The disbursement process picked up in January this year, according to the expatriates' welfare ministry.

According to the Ovibashi Karmi Unnayan Programme study, approximately 37% of returnees do not know about the loan.

The PKB general manager also admitted that a manpower shortage had created a communication gap between returnees and the lender.