There are several export-oriented sectors in the country that can earn more foreign revenue, if the government provides those with cash incentives, like it does to other major export-earning sectors, according to industry insiders. It becomes obvious from the analysis of the country’s export that even though the volume of earnings is increasing gradually, the process of product diversification is very slow.
Business people are not showing the necessary enthusiasm to create diversify products as well as to tap in new export markets. As a result, a few products are dominating the country’s export market. 90 percent of the country’s total export earnings are coming from four types of products. Of them, readymade garments are earning 80 percent, and the rest 10 percent is earned from frozen food, jute and jute goods, and leather products.
However, industry insiders say, there are such products that have wide range of possibilities and demand in foreign markets to which the government needs to pay more attention. These products include ceramics, medicine, leather goods, furniture, cow-buffalo bone, coconut husk fiber, IT products, cuchia fish, vegetables, and halal meat, identified as special development sector.
These sectors are not having government incentives, proper cash incentives in these products may increase more export earnings- industry insiders add.
Mentionable, in order to encourage exports in accordance with the export-led economic growth strategy of the country, the government provides export incentives to selected export sectors.
The sectors to enjoy such cash incentives and the respective rates to be provided are updated every year through circulars issued by the Bangladesh Bank.
According to Bangladesh Bank information, to encourage the country’s export sectors, the government has decided to provide export subsidy or cash incentives to certain export-oriented products since the 2016-17 fiscal that still continues.
According to commerce ministry information, it was learnt that apart from RMG, there are other such export-oriented products, which are encouraging to earn more revenue. Among them are garments accessories, software, IT-enabled services and IT products, medicine, ship, leather and leather goods, jute and jute goods, plastic, agri products, furniture, home textile and terry towel, home furnishing and luggage.
To increase export earnings, the ministry has identified 14 products like jute diversified products, electronics and electronic products, ceramic products, light engineering products, frozen fish, printing and packaging, uneven diamond and jewelry, paper and paper products, rubber, silk, handmade designed products, lungi and tant products and coconut husk fibers.
In this regard, commerce minister Tipu Munshi said, the government has taken initiatives to create more diversified products to increase export earnings. In such situation, 12 sectors have been identified with highest priorities in the three-year export policy 2015-18. The government is providing incentives to these products at a fixed rate. As the government is cordial, the export earning is increasing.
About new export destinations, he replied, there are such products which have vast opportunities in the foreign markets, the government is also encouraging businessmen of these sectors, for which, export is increasing. Commerce ministry information further showed that to expand foreign destinations for export earnings, discussion at government level is continuing. New possible export destinations may include Turkey, Australia, China, Japan, Korea, Russia, Brazil, the Middle East, Thailand, Singapore, Argentina, Chili, Uruguay, Portugal, United Arab Emirates and others.
As per the government target, this fiscal, export earnings are set at $39 billion. To achieve such a target, the government is emphasizing on increasing export of agricultural products, medicine, ICT, ships and other products.
