Exports witness rapid growth

Necessary steps should be taken to sustain the growth momentum

Published : 06 Sep 2023 08:21 PM

It is good to note that Bangladesh’s export earnings witnessed a rapid growth for two months in a row to stand at $8.59 billion in July-August in the current fiscal 2023-24, up 9.12 percent over the corresponding period of the previous fiscal. Reportedly, in August, exports soared by 3.8 percent year-on-year to $4.60 billion, the second month of the new fiscal. It needs to be mentioned that the country’s exports rose by 15.26 percent year-on-year in July driven by an acceleration in the shipment of readymade garments, according to the Export Promotion Bureau (EPB).

RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth. Reportedly, Bangladesh holds the second position in the European market and the third position in the US market in the export of ready-made garments. However, Bangladesh needs to diversify its export basket in order to sustain accelerated economic growth, increase investment opportunities and create more jobs.

New and potential markets

 must be explored for diversification 

and sustainability of the sector

The existing policies implemented by the government over the last years have played an important role in boosting the country’s export earnings. Over the last few years we have seen some remarkable changes in our industrial infrastructures. Also, 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. 

New and potential markets must be explored for diversification and sustainability of the sector. In order to boost the export earning, export of Halal products can play a big role. Halal products have a huge demand in the international market, even in the European market, because of their distinct quality. We believe, with proper support from the authorities concerned, Bangladesh can earn more by exporting Halal products. 

A comprehensive policy package coupled with supportive governmental incentives will help our export industry grow further. Bangladesh needs to pay more attention to devise an alternative strategy that encourages diversification of exports, both in terms of products and destination.

The government's recent initiatives to promote thrust sectors including pharmaceuticals, agro-products, plastics, ICT, shipbuilding, furniture, are moving in the right direction. But at the same time it is true that 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.