Where Is the Foreign Income of Bangladeshi Freelancers Going?

Where Is the Foreign Income of Bangladeshi Freelancers Going?

Freelancing has become a booming career path in Bangladesh, especially among the youth. With the rise of global digital platforms like Upwork, Fiverr, Freelancer.com, and Toptal, thousands of skilled individuals from Bangladesh are earning money by offering services such as graphic design, programming, content writing, digital marketing, and more. According to the Oxford Internet Institute, Bangladesh is one of the top freelancing countries globally. But a serious question arises: where is all this foreign income going?

This article takes a closer look at the financial path of freelancing earnings in Bangladesh, why a significant portion is stored outside the country, and what that means for the national economy.


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Freelancers: Earning Big, But Not Spending Locally

Many Bangladeshi freelancers earn in U.S. dollars or euros, and these payments usually arrive through international payment platforms like Payoneer, Wise (formerly TransferWise), and sometimes even cryptocurrency wallets. While the money is technically earned by a Bangladeshi citizen, it often doesn't get fully transferred into the local banking system.

Some freelancers choose to keep their earnings in foreign accounts or digital wallets instead of bringing them to Bangladeshi banks. Why? The answer is quite simple: flexibility, currency strength, and limited financial options locally. U.S. dollars are more stable than Bangladeshi Taka, and keeping earnings in foreign currency allows freelancers to shop online internationally, invest in global assets, or even save for future emigration plans.


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Why Do Freelancers Avoid Local Banking?

There are several reasons why freelancers hesitate to transfer their money into the Bangladeshi economy:

1. High Conversion Rates and Hidden Fees: When transferring money from foreign platforms to local banks, freelancers often face high conversion rates and additional charges. For someone earning just a few hundred dollars a month, these deductions matter a lot.


2. Tax Confusion and Fear: Although the Bangladeshi government currently offers tax exemptions on remittance through legal channels, many freelancers are still unsure about taxation laws. Fear of being taxed unfairly makes them hesitant to declare full earnings.


3. Lack of Investment Opportunities: Once the money is in a Bangladeshi bank, there are limited attractive opportunities to invest or grow that money. International platforms offer options like stock trading, crypto investment, or high-yield savings accounts — things that are either unavailable or too complex in Bangladesh.


4. International Spending Needs: Many freelancers purchase online tools, courses, domains, software, and gadgets from abroad. Keeping money in foreign wallets makes such transactions smoother.




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Economic Impact on Bangladesh

While freelancers contribute foreign currency to the national economy when they transfer money legally, the partial or full retention of earnings outside Bangladesh means the country loses valuable foreign reserves. If this continues to grow, the government might lose a significant portion of the remittance potential from digital workers.

This also limits the government's ability to track income and ensure fair financial policies. Moreover, if earnings are not entering the mainstream banking system, it becomes difficult for freelancers to access loans, mortgages, or even proper retirement savings — which eventually affects their own financial security.


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What Can Be Done?

To encourage freelancers to bring their earnings into Bangladesh, the government and financial institutions must take several steps:

Simplify the process of receiving payments through better integration of global payment platforms with local banks.

Offer better exchange rates and fewer fees for freelancers transferring foreign currency.

Provide training and clarity on taxes for digital workers, so they can operate confidently and legally.

Introduce digital investment options (like bonds, stocks, mutual funds) tailored for freelancers.

Enable smooth international transactions through prepaid cards and digital wallets approved by the Bangladesh Bank.


If these steps are taken, freelancers will feel more confident about using Bangladeshi banks and contributing more directly to the economy.


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Conclusion

Bangladeshi freelancers are bringing in millions of dollars in foreign income every year. However, due to a lack of proper infrastructure, trust, and incentives, much of this money remains outside the country. If addressed properly, this sector could become a major force for economic growth. It’s time for policymakers to recognize the importance of freelancers — not just as individuals earning money, but as key contributors to Bangladesh's digital future.