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More products to reach export target by FY 20

Total export target is $54 billion


Published : 26 Aug 2019 09:59 PM | Updated : 01 Sep 2020 11:24 PM

To achieve the $54 billion export target by FY 20, the government will have to add more diversified products to the export basket, experts said. Commerce secretary Md Mofizul Islam said, “World economic outlooks, government policy supports, changes in the dollar exchange rate, market and product diversification, supply side capacity, improvement of safety standards in garment factories and effects of the US-China trade war have been taken into consideration during fixing of the target in FY 20.   The government has set a target of $45.50 billion earnings from merchandise exports in fiscal (FY) 2019-20, up 12.25 percent growth over the previous fiscal. It has also set an additional $8.50 billion in earnings from service exports, up 34.10 percent from that in the previous fiscal.

The total export target for the current fiscal year is set at $54 billion, up 15.20 percent from that in the previous fiscal. Meanwhile, the country fetched record $40.53 billion export earnings in the last fiscal year (FY2018-2019), up by 10.55 percent over the previous fiscal. The inflow was $36.66 billion in fiscal 2017-18. Experts are of the opinion that it is time to focus on new and potential export items, like jute and jute goods, leather, agricultural products and pharmaceuticals, in order to come out of overdependence on readymade garments, they said.

To compete with other Asian countries, notably China, India, Indonesia, Malaysia, Sri Lanka, Thailand and Vietnam, it is necessary to come up with more diversified products, they mentioned. On the other hand, exporters said the export target set by the government had many challenges to achieve it, but it is not impossible. 

They urged the authorities to increase the infrastructural facilities to produce more product.  Besides, the central bank should maintain bank’s interest in single digits to encourage entrepreneurs to invest more in this sector.

Although the country’s export earnings stood at more than 92 percent of total exports from only 10 countries, this amount came from only 5 products including readymade garment (RMG), agricultural, leather , jute and fish.

On the other hand, the contribution of exports of only readymade garments was almost 84.20 percent of total exports ($40.53 billion) to stand at $34.13 billion. He said, “It is achievable target.”

Eminent economist and former governor of Bangladesh Bank Saleh Uddin Ahmed told Bangladesh Post that for export diversification, the government needs to encourage entrepreneurs by giving several fiscal and technical supports. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq said, RMG exports have increased, but at the same time, we have to maintain quality of products to exports to different countries. The BGMEA head said that they are now working to create new markets by promoting their products in order to raise export earnings.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Sheikh Fazle Fahim said Bangladesh has one of the most liberal and flexible investment place in South Asia as the government has offered a lot of incentives to investors. He also said the FBCCI has given many supports including trade and investment facilitation and policy advocacy for creating business friendly environment in the country. Abdus Salam Murshedy, President of Exporters Association of Bangladesh (EAB), told Bangladesh Post that export earnings have been increasing gradually, which is a positive news for Bangladesh. Highlighting the government’s initiatives to establish the apparel sector in the global market, he said, “It is high time to extend similar support to other potential sectors like agriculture, ceramic and pharmaceutical industries.”

Policy Research Institute Executive Director Ahsan H Mansur said, "Achievement of the export target will depend on the global economic situation, demands of good and taking advantage of US-China trade war." "Since the export earnings is highly dependent on the apparel sector, the target should be achieved by the RMG sector. In doing so, Bangladesh has to attract work orders from China," he said.