The country has set an export target of $60 billion in 2021 as the government has taken many steps to achieve this stupendous achievement, Commerce Minister Tipu Munshi said. He said, “We are working together with businesspersons to achieve this target. Hopefully, we can export $60 billion as we are moving towards that goal.”
Tipu Munshi came up with these observations at a program in Chattagram City on Sunday. The Commerce Minister said, “I have recently been to Russia, Brazil, Argentina, Uruguay, Paraguay, Czech Republic and Belarus to diversify our businesses, where may be new destinations for our products.” He said, “Bangladesh is now the role model of the world today in terms of GDP growth, which has encouraged foreign investors to inject more funds in the country.” However, the country fetched record $40.53 billion export earnings in the last fiscal year (FY2018-2019), up by 10.55 percent over the previous fiscal.
The inflow was $36.66 billion in fiscal 2017-18.
The export earnings beat the strategic target of $39 billion set for the last fiscal by 3.94 percent. Experts have attributed the healthy growth in the country’s export earnings to strong dollar rate against Taka, quality products and time-befitting measures adopted by the government to support the industrial sector. The experts said foreign buyers are slowly switching to Bangladesh as the country is shifting towards making high-value products.
They, however, urged the government to ensure a more business-friendly environment. Besides, the country needs some fiscal supports including reducing time of discharging export items from ports as well as improving communication systems which can help boost the export flow further, they added. Official data shows export earnings from readymade garments, which accounts for more than 84 percent of the total export earnings, went up by 11.49 percent during the FY19 from $34.13 billion in the previous fiscal.
On the other hand, export earnings from agricultural products stood at $908.96 million during the time, up by 34.92 percent against $673.69 million earned in the previous fiscal. Besides, the plastic sector also witnessed a positive growth of $119.8 million during the time, which was 21.65 percent higher from $98.48 million in the previous fiscal.
Meanwhile, export earnings from chemical, petroleum bi products, cotton and cotton products, furniture, ceramic products and handicrafts also saw a positive growth. Export earnings from the respective sectors were $205.18million, $203.74 million, $152.16 million, $74.89 million, $68.97 million and $19.95 million respectively.
However, the leather sector needs special care for a rebound due to its facing huge difficulties to compete in the global market. Export earnings from this sector stood at $1019.78 million during the last fiscal, which was 6.06 percent lower than that in the previous fiscal. During the FY18, the figure was $1085.51 million.
Besides, jute and jute goods and engineering finished products also decreased by 20.41 percent to $816.27 million and by 4.12 percent to $341.3 million during the time. Frozen and live fish, home textile, wood and wood products also witnessed a negative growth during the period. The figures were $500.4 million, $851.72 million and $3.91 million respectively.
Former lead Economist of World Bank Dr Zahid Hussain told the Bangladesh Post export earnings have been increasing gradually, a positive news for Bangladesh. He said, “Bangladesh has fully depended on only one product (readymade garments) of export earnings, which accounts for more than 84 percent of the total export earnings.”
“It is high time to focus on new and potential export items, like jute and jute goods, leather, agricultural products and pharmaceuticals in order to come out of overdependence on readymade garments as well as reducing risks,” he said. To compete with other Asian countries, notably China, India, Indonesia, Malaysia, Sri Lanka, Thailand and Vietnam, it is necessary to come up with more diversified products, he mentioned.
Hussain suggested that the government should act promptly to reduce trade barriers with different countries, which will help enhance export earnings by diversifying the market globally.