Clicky
National, Front Page

$48bn export target for FY21


Published : 16 Jul 2020 10:40 PM | Updated : 07 Sep 2020 11:26 AM

The government has set the export target at $48 billion for the current fiscal 2020-21, with growth of product exports likely to be projected at 21.75 percent over that in the previous fiscal.

The product exports would contribute $41 billion and the services sector $7 billion.
The products export target was $45.5 billion in the last fiscal year and earnings fell by 16.93 percent to $33.67 billion during the time.

The services sector export target was $8.5 billion last year.
Commerce Minister Tipu Munshi on Thursday announced the export targets for fiscal 2020-21 at a press conference through the Zoom platform.

Commerce Secretary, Zafar Uddin, the Prime Minister's Private Industry and Investment Adviser Salman F Rahman, FBCCI President Sheikh Fazle Fahim, Garment Manufacturers and Exporters Association (BGMEA) President Dr Rubana Haque also were present at the conference.

Tipu Munshi said, “It is expected that the Covid-19 epidemic will come down by the end of 2020. After that, the country’s export earnings also will rebound as the government is taking several initiatives to boost export earnings.”

Besides, the world economy will return to its normal trend by 2021 as the countries of Europe and America will see demand jump in the fourth quarter of this year. As a result, the country’s export earnings will also increase with those of the exporting countries.
The Commerce Minister said, “The government has taken many steps including diversifying the readymade garment products and market to increase export earnings.”

The government also emphasized developing many potential sectors including IT, e-commerce, leather and jute sectors as those products have created huge demand in the global market, he mentioned.

However, the country’s export earnings have witnessed a negative growth to stand at $33.67 billion in the last fiscal 2019-20, which is 16.93 percent less caused by Covid-19 pandemic than that in the previous fiscal, and 26 percent less than the target.
The country’s earnings from readymade garment (RMG) exports witnessed a negative growth to hit $27.94 billion during FY20 against $28.49 billion during the same period a year earlier, posting a 18.12 percent negative growth.

The earnings also missed the target set for the period by 26.83 percent.
Meanwhile, the knitwear export stood at $13.90 billion during FY20, posting 17.65 percent lower than that the previous fiscal year.

Export earnings from woven fabric declined by 18.58 percent to $14.04 billion from the previous fiscal’s.
On the other hand, export earnings from leather and leather goods witnessed a large negative growth during last fiscal due to the coronavirus pandemic.

In the last fiscal year, the export income of this sector decreased by 21.79 percent. Income from this sector decreased by 27.3 percent to $797.6 million from $1,019 million.

However, Jute, the golden fiber of Bangladesh, may bring a golden future for the country. It may also contribute to becoming the new growth driver of the country’s economy.

Export earnings from jute and jute-made goods stood at $882.3 million during the last fiscal, 2019-20, which is 8.10 percent more than the earnings in the previous fiscal, according to the Export Promotion Bureau (EPB).

It is also higher than the strategic export target of 7 percent during the time.
Economists said the demand for jute and jute products has increased due to the reduction in the use of polythene in the world in response to the demands of environmentalists.

Hence, it is high time the government expands this sector through ensuring quality and diversifying the market across the globe to boost the export earnings during the corona crisis, they added.
Besides, the export earnings from medicines increased by 4.49 percent.