High hopes on promising export earners to add $6bn more in FY22

Bangladesh has set an export earning target at $51 billion for the current fiscal year, mainly banking on four promising earners alongside the biggest contributor RMG industry in this pandemic time. 

The government expects agriculture, home textile, jute and jute goods, leather and leather products, which registered strong growth with three of them clocking a 1$ billion mark in FY21, to put up an even better performance to ensure a 12.37% year-on-year growth in the new fiscal year. 

Some $43.50 billion has been fixed for merchandise shipment and $7.5 billion for services in the new fiscal year, Commerce Minister Tipu Munshi said while announcing the export target at a virtual meeting on Tuesday.

Leaders from export-oriented industries at the meeting said the target is achievable but to increase exports, the government should take necessary measures to bring an end to different types of harassment they face at customs, ports and other departments. 

Seeking cooperation from businesses in reaching the export target, Tipu Munshi said the government has set the target after consulting with all parties concerned and will provide all necessary support for the purpose.

All major sectors will now have to go the extra mile to reach the new export target, aiming at earning $5.61 billion more in FY22.

The RMG sector will have to earn an additional $3.5 billion, jute and jute goods $269 million, home textile $238 million, leather and leather goods $89 million and agriculture $76 million in the ongoing fiscal year.  Besides, engineering products need to contribute $115 million and non-leather goods $56 million more, while the service sector will add an extra $860 million.

In the just-concluded fiscal year, the country raked in $45 billion in both merchandise and service exports, recording a growth rate of 15.10% over FY20, but still fell short of the over $48 billion target for the year. 

To boost exports amid the pandemic, the government has been giving a 1% incentive against all types of exports since FY21. Besides, new entrepreneurs in agro-processing and engineering sectors have been given a 10-year tax break from the current fiscal year.

The government had aimed at taking the country's annual export to $60 billion by 2021, expecting $50 billion from the RMG sector. But the target has not been achieved yet even after taking service exports into account for calculation. 

"We are not far behind our $60 billion target and will go close to it soon," said commerce secretary Tapan Kanti Ghosh.

Exporters say Bangladesh's exports, which plummeted after the pandemic hit in 2020, made a turnaround in the just-concluded financial year, but have not yet reached the pre-pandemic level. The Bangladesh Export Promotion Bureau (EPB) statistics showed the same.

The commerce minister said, "We have not been able to achieve the desired growth because of Covid-19. There are many challenges that our economy is facing, which might have long-term impacts."

Mohammad Hatem, first vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association and Md Saiful Islam, president of Leathergoods & Footwear Manufacturers and Exporters Association Bangladesh, said it is possible to achieve this export target. 

Terming the export target realistic, Md Siddiqur Rahman, former president of BGMEA, highlighted mismanagement and various forms of harassment in the field of exports.

Container congestion at ports is supposed to ease amid Covid-19, but it has increased instead. Thousands of containers are now lying at the Chattogram port, he said adding that the ports are not kept open 24 hours a day despite the prime minister's instruction to do so. 

Siddiqur called upon the commerce minister to take initiatives to resolve such issues.

Besides, he also demanded a 1% increase in incentives against exports.

Among others, AHM Ahsan, vice-chairman of the Export Promotion Bureau and Md Shaheen Ahamed, chairman of Bangladesh Tanners Association, also spoke on the occasion.