An increasing number of foreign nationals are seeking permits to work in Bangladesh because of a lack of skilled managers and an education system not tailored to meet industrialisation in the country.

A total of 16,303 applications from nationals of 101 countries were approved by the Bangladesh Investment Development Authority (Bida) in the fiscal year of 2022-23, up around 8 percent year-on-year.

Of the files, 6,256 are for new work permits while 10,047 are renewals, according to the annual report of the state-run investment promotion agency.

In 2021-22, some 15,128 applicants from 106 countries received the permit, which is a staggering 87 percent increase from that in the fiscal year preceding it. Of them, 7,790 were for new work permits and 7,338 renewals.

The Bida issued 8,076 permits in 2020-21.

Besides, government agencies such as the Bangladesh Economic Zones Authority (Beza), the Bangladesh Export Processing Zones Authority (Bepza), the NGO Affairs Bureau and some ministries grant permits to foreign nationals to work on projects.

For example, as of June 2024, the Bepza has issued over 1,800 permits for foreign nationals to work inside export processing zones, while the Beza gave its consent for 1,350 applications.

Nationals from India secured the highest number of work permits at 3,159 from the Bida in FY23, followed by those from China (2,339), Sri Lanka (759), and Belarus (727).

Industry insiders say foreigners were hired based on their skills and on their past records of being industrious as they can contribute to outstanding outcomes for industrial development.

Mohsina Yasmin, executive member of the Bida, said the rise was not all that bad as the professionals were meeting the skills gap in the national workforce of the industrial sector, abiding by the laws of Bangladesh and paying taxes.

"We provide work permits as per the guidelines for skilled technicians and managerial level positions as they can help generate skills for our manpower," she told The Daily Star recently.

Yasmin pointed out that the Bida issued work permits solely to those foreign nationals who were engaged in Bida-registered industrial projects, commercial offices and other organisations.

The agency does not maintain the data relating to the total number of foreign workers in Bangladesh, she added.

Abdul Matlub Ahmad, president of the Indo-Bangla Chamber of Commerce and Industry, said Bangladeshi investors, especially in the garment and automobile sectors, usually hire highly skilled Indian engineers and managers.

"Besides, there are a lot of Indian entrepreneurs of small and medium enterprises who avail long-term work permits instead of short-term visas for having to regularly travel to Bangladesh."

Ahmad said he had also hired six highly skilled Indian engineers for his Nitol Niloy Group to develop the skills of local engineers and managers.

He acknowledged that the investors prefer to hire such skilled professionals as they contribute to business growth and expansion.

"On the other hand, industries are expanding through foreign direct investments and joint ventures with local investors, all of which require skilled manpower."

Mohammed Amirul Haque, managing director of Premier Cement Mills, said investors hire foreign professionals to train local managers and engineers but at the end of the day, this was not always realised.

"So, investors have continued to depend on foreign professionals. However, in some cases, it is better to hire local professionals than foreigners."

If investors get skilled professionals locally, the outflow of funds in the form of remittances will reduce, which will help the economy.

Foreigners working in Bangladesh sent home $137 million in 2022, World Bank data showed although analysts believe the exact figure would be much higher since many people from other nations are employed in the country without valid permits.

In 2020, the Transparency International Bangladesh (TIB) said an estimated $3.1 billion was siphoned away every year by foreign nationals employed in the country.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, said the yearly increase in the number of foreign nationals indicate that the labour market of Bangladesh offered flexibility and satisfaction.

"However, a continuous rise of foreign nationals in the industrial sector was a clear indication that the local graduates and professionals are not as skilled as the foreigners."

"Even though local professionals can be hired at a lower pay, investors recruit foreign professionals offering high remunerations due to their professionalism and skills."

The economist also said this trend raises questions and sends a negative impression about the knowledge being imparted by the educational institutions in the country.

Moazzem suggested building skilled manpower by ensuring quality education to reduce dependency on foreign nationals and to reduce pressure on the forex reserve.

Ferdaus Ara Begum, chief executive officer of think tank Business Initiative Leading Development, blamed the skills gap in the local workforce and a lack of quality education at the tertiary level.

Besides, public university graduates tend to leave the country after gaining skills as they do not get the facilities as per their expectations although the government spends a huge amount of money on their education, she alleged.

Ferdaus Ara also said there were allegations that some foreign nationals come to Bangladesh without job visas and work on a temporary basis.

"It is really tough to identify these temporary workers who come under tourist visas."