DHAKA: They are upbeat on Bangladesh’s export growth saying that the country’s economy would achieve a new dimension if the government extends support to reach the goal. According to exporters, Bangladesh exports around 715 categories of products, including readymade garments, jute and jute goods, textiles, frozen fish, hides and leather goods, to 187 countries.
In a recent informal meeting with journalists at the Secretariat, both the finance minister and commerce minister pointed to the rising exports every year. The government has already been encouraging the export- oriented entrepreneurs with cash incentive from 5 to 20 per cent in certain items covering cloth, frozen fish, skin products, agro products, jute and jute goods and light engineering and shipbuilding.
Besides cash incentive, measures have been taken by the government to ease bank credits. In industrial sector, proper measures for electricity connection and removal of gas crises will help strengthen the export growth and boost earnings in the next five years. Such measures accompanied by congenial political atmosphere will stabilize the export sector and boost annual export earnings to more than $50 billion in 2020, the business leaders hoped.
Meanwhile, the government has also explored new export markets in India, Japan, Malaysia, China, Russia, Australia, New Zealand, Korea, Chile, South Africa, Brazil, Argentina and few other countries. In countries other than Russia, South Africa and Brazil, Bangladeshi garments have been enjoying duty free facilities. However, the government is now negotiating with those countries to win zero tariff benefit. Fiji has given duty-free access of Bangladeshi products since February, 2015, Bangladesh entered the global export market through a modest export earning of only $348.42 million in the financial year 1972-73.
Export Promotion Bureau (EPB) data shows exports grew to $16.20 billion in FY 2009-10 from $15.56 billion in FY 2008-09. The export earning in FY 2010-11 was $22.93, while it was $24.92 billion in 2011-12. The FY 2000-01, the last year of the past Awami League government’s tenure, witnessed exports of only $ 6.46 billion. In the first year of the BNP government’s rule, export earning was $ 5.98 billion.
The 2016-17 Financial Year (FY) growth target is 10 per cent and export target is $37 billion (US$ 3700 crore). In the previous year growth target was 8 per cent and export target was $33.50 billion. But both targets had been exceeded, said sources at the Export Promotion bureau (EPB). RMG remains the lead export earner having accounted for 80 per cent of total exports. But introduction of “tax at source” in the new budge may have a negative impact on the export, BGMEA leaders said.
Bangladesh’s exports crossed a $34 billion in FY 2015-16 for the first time, overcoming the fear of fallout from political unrest in last two years despite prickly queries by foreign buyers in the readymade garment sector. BGMEA President Siddiqur Rahman told the Daily Observer: “If infrastructural problem and power crisis are over and the government’s present cooperation goes on, Bangladesh will be able to export $ 50 billion worth of apparels. BKMEA former Vice President Mohammad Hatem said, “If the government assistance continues political situation is normal and there is no gas and power crisis it will be possible to increase export earnings from present $ 34 billion to $ 50 billion.”