Export earnings of Bangladesh are likely to rise by 20 percent more if transport costs drop, says the World Bank.
“Expenditure in the transport sector in Bangladesh is very high. If this cost can be reduced, the country's export growth will increase by 20 percent,” Martha B Lawrence, global lead of the Regional Connectivity and Logistics Knowledge Group at the World Bank, said.
He said this while speaking at the closing ceremony of the two-day workshop in the capital on Thursday.
The Ministry of Industries, World Bank Group and private research organization Business Initiative Leading Development (BUILD) jointly organized this workshop with the aim of formulating development policy in the transport sector.
Two essays were presented on the final day. One of these was presented by lead Martha B. Lawrence.
The other article was presented by ABM Amin Ullah Noori, Secretary of Road Transport and Highways Department.
The World Bank official said that Bangladesh ranks 100th among 160 countries in the cost performance index in the transport sector.
To improve this index, the government should reduce traffic congestion and modernize the traffic system, he mentioned.
For this, coordination between the government’s agencies involved in the communication system is required, he said, adding that coordinated initiatives should be taken now for the development of railway and waterway systems.
Speaking as the chief guest at the event, Railways Minister Nurul Islam Sujan said, “It is not possible to reduce the cost of transportation without modern railway system. The ongoing projects of the Ministry of Railways will help Bangladesh connect with the Trans-Asian Railway Network, which will help create new export markets.”
He said that the Ministry of Railways will provide all kinds of support to make Bangladesh a multimodal logistics hub in South Asia.
Shamik Raj, World Bank's South Asia Market and Transport Officer, said, the World Bank has been providing assistance in the modernization of Bangladesh's railways, roads, waterways, bay-terminals and land ports. This support will continue in the future, he mentioned.
Stakeholders and experts urged the government at the event to improve logistics efficiency and quality, improve the logistics infrastructure, and improve regional connectivity while formulating the National Logistics Industry Development Policy to develop a balanced multimodal transport system.
Meanwhile, exports earnings rose by 7.01 percent to $ 16.85 billion in July-October of FY23 over the same period of that in the previous fiscal, amounting to $15.75 billion.
Apparel exports stood at $13.95 billion in July-October of FY23, up by 10.55 percent from $12.62 billion in the same period of FY22.
The country has set a target of $58 billion for the current fiscal year.
However, Bangladesh's export earnings declined by 7.85 percent in October over the same period of previous year, according to the Export Promotion Bureau (EPB) data.
The country has faced a dollar crisis for several months for rising imports and decreasing remittance inflows and export earnings.
Meanwhile, Bangladesh Bank governor Abdur Rouf Talukder said on Thursday that there will be no foreign exchange crisis from January 2023, as exports and remittances have recently become surplus against imports.
The government has taken various initiatives to boost export earnings to meet higher forex demand.
Since Bangladesh would have to face many challenges for smooth LDC graduation by 2026, massive preparations had been undertaken to face these challenges.
Commerce minister Tipu Munshi had said recently that the country needs to move forward with a long-term plan to increase exportable items and also to expand the export markets considering the smooth LDC graduation.
Experts said the government should increase competitiveness in logistics services through integrated development of transport sectors, and engaging all sectors in the formulation of the national logistic industry development policy to boost export earnings.