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Editorial

Towards achieving sustainable export growth

Time to lessen over-reliance on RMG


Bangladeshpost
Published : 21 Aug 2019 06:23 PM | Updated : 07 Sep 2020 01:08 PM

Bangladesh fetched $3.89 billion from exports in July this year, which is 8.55 percent over the earning in the same month last year. The inflow was $3.58 billion in July 2018. The fact that we have outdone our export earning target of USD $3.83 billion set for July 2019 by such a large margin is a testament to the robustness of our export sector. Much of this growth is attributable to the relative political stability the nation has seen recently.

We are told that 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. Experts opine that because of the widening trade dispute between the world’s two biggest economies, lion’s share of RMG exports from China to the US now would be diverted to Bangladesh and other potential RMG manufacturing countries like India, Vietnam, Chile and Mexico.  It is needless to say that such a situation has opened up a window of opportunity for Bangladesh to give a boost to its export earnings. In this regard, Bangladesh needs to undertake massive plans to develop skilled manpower in Ready-Made Garments (RMG) in order to invite foreign investments.


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


Bangladesh is now capable of making 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.

Bangladesh needs to pay more attention to devise an alternative strategy that encourages diversification of exports, both in terms of products and destination. There is no denying that the 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.

And finally, a comprehensive policy package coupled with supportive governmental incentives will help our export industry grow further. .