Export earnings hit record high

Lessen over-reliance on RMG, diversify explore basket

Published : 03 Jun 2022 09:11 PM

It is encouraging to note that the country's export earnings witnessed a record high to stand at $$47.17 billion during the July-April in the current fiscal year of 2021-22, up 34.09 percent over the same period of the previous fiscal. As reported by this daily on Friday the country’s export earnings stood at $38.52 billion from the ready-made garments (RMG) in July-April this fiscal, up around 34.87 percent over the previous fiscal. The overall export earnings also surpassed the set target by 19.61 percent for the first 11 months of the current fiscal, according to EPB data.

The existing policies implemented by the government over the last years have been fruitful towards boosting the country’s export earnings. It is worth mentioning that the country’s export earnings continued an upward trend for the last several months in the current fiscal 2021-22 even during the coronavirus pandemic, thanks to a strong rebound in apparel shipment. Over the last few years we have seen some revolutionary changes in our industrial infrastructures. Consequently, international retailers have got back their confidence to invest in Bangladesh. Besides, some of the biggest apparel exporters have been losing their share in global market because of higher costs of production and shortage of workers. As a result, work orders are being diverted to Bangladeshi factories. Therefore, we should take the privilege of low cost production that we are enjoying in Bangladesh.

Bangladesh needs to pay more

 attention to devise an alternative 

strategy that encourages diversification of 

exports, both in terms of products and destination

In order to sustain the current tempo of the country’s export growth, our efforts to solve infrastructure, power, and institutional bottlenecks need to be followed through. Also, a comprehensive policy package coupled with supportive governmental incentives will help our export industry grow further. We are capable of making the best quality products at low prices. Hence, the government needs to encourage entrepreneurs by giving several fiscal and technical support. 

Bangladesh needs to pay more attention to devise an alternative strategy that encourages diversification of exports, both in terms of products and destination. It is time to add more diversified products to our export basket in order to sustain economic growth, increase investment opportunities, and create more jobs, particularly for women. Last but not least, there is a need for an exemption of taxes on raw materials and backward linkage industries to survive competition with others, which will help expand the country’s export earnings.