Towards achieving sustainable export growth

Prioritize export diversification

It is good news that the country’s export earnings witnessed a robust growth in first ten months of the ongoing fiscal year (FY2018-2019).

Reportedly, in July-April period the country’s total export earnings stood at $33.93 billion, up by 11.61 percent over the corresponding period of the previous fiscal. The RMG sector has attained a steady growth in the current fiscal while some other sectors have also been successful in maintaining the momentum of their export growth.

Reportedly, the government expects to fetch more than USD 60 million by 2021. In order to do that, making our export growth sustainable is a must. In this regard, the government should look forward to adding more diversified products to the export basket. Also, focus should be given on potential export items such as processed agro-products, Halal-products, jute and jute goods, leather, pharmaceuticals and so on.

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, China, the largest apparel exporter, has been losing its share in global apparel trade because of higher costs of production and shortage of workers. As a result, the work orders are being diverted to Bangladeshi factories. Therefore, we should take the privilege of low cost production that we are enjoying here. 

Bangladesh is now capable of making the best quality products at low prices. Therefore, the government needs to encourage entrepreneurs by giving several fiscal and technical supports. Also 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. However, 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. Reportedly, the global Islamic market is around USD 2 trillion which is 11.9 percent of the global market size. Brazil, Australia, New Zealand and Thailand are leading suppliers in Halal market. We believe, with proper support from the authorities concerned, Bangladesh can earn more by exporting Halal products.