The country’s export earnings from the service sector witnessed strong growth in the last fiscal year - 2018-19, up by 31.53 percent to reach $6.34 billion over the previous fiscal. The export earnings from this sector beat the strategic target of $5 billion set for the last fiscal by 21 percent. In July this year, this flow was $532.67 million, up by 3.62 percent from $514.05 million in the same period of previous year.
Government’s initiatives to facilitate smooth export, developing transportation and telecommunication and improve information services played a crucial role in securing the steady growth, experts said. Market analysts have attributed the healthy growth in the country’s export earnings to stronger dollar price against Taka, quality services in export and time-befitting measures adopted by the government.
The inflow was $4.34 billion in fiscal 2017-18, according to an Export Promotion Bureau (EPB) data. Economists said policymakers and government should increase knowledge, experience and capacity in service-trade negotiations in global forums to increase export earnings from this sector further. They said, we are mostly depended for export earnings from only one product that is readymade garments (RMG), which is very risky for the country’s economy.
They mentioned that the earnings from RMG, which in the previous 2017-18 fiscal was $30.61 billion, saw an increase at $34.13 billion in the FY- 2018-19. The RMG accounted for 84.2 percent of $40.53 billion total export earnings during the last fiscal, they added. They said the country should lay emphasis on regional and bilateral trade agreements regarding service sector, which will increase export earnings from this sector.
As per EPB sources, earnings from transportation sector went up by 34.51 percent to $662.76 million in FY 2018-19. Sea transportation brought in $305.77 million, growing by 29.54 percent during the time from that in the corresponding period of the previous fiscal. Export of air transport services increased by 14.64 percent to $354.24 million. Export of travel services increased to $367.86 million in the period from $344.81 million in the previous fiscal. Export of construction services increased to $434.93 million during the time.
Besides, office maintenance service stood at $1719 million in FY 19. Export of personal, cultural and recreational services increased by 46 percent to $14.99 million in the period. Meanwhile, export of telecommunication and information services decreased to $549 million during the time. In the category of computer services earnings also declined by almost two percent to $225 million.
Abdus Salam Murshedy, President of Exporters Association of Bangladesh, told Bangladesh Post that export earnings in the service sector have gradually increased, which is contributing to the country’s economy. “Time has come to expand the service sector to more global markets to boost foreign currency reserves to reduce US dollar crisis on foreign exchange market,” he said.
He added that the government should identify various challenges in this sector including quality education system, language and training problem, cultural barrier and lack of skilled nurses in the process. Murshedy said, “The authority should give emphasis on improvement of four areas such as services in tourism and travel, computer, transport and human health to boost export earnings from this sector.”
