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http://www.dhakatribune.com/business/commerce/2017/07/30/bangladesh-42bn-export-target-2018-fiscal/
Export target set at $41bn for FY2017-18
Commerce Minister Tofail Ahmed on Sunday presides over a meeting at his ministry's conference room PID
The garment sector is expected to contribute $30.16bn to the total targeted amount
The Bangladesh government has set its export target at $41 billion, with a growth target of 7.87%, riding on apparel products, for the FY2017-18.
Of the amount, $37.50 billion is expected to come from the manufacturing sector, including the RMG sector, while $3.50 billion will come from the service sector, including computer services.
Commerce Minister Tofail Ahmed made the announcement at his office in the capital on Sunday. Commerce Secretary Shubhashish Bose was also present during the meeting.
“Taking into consideration the global economic outlook, policy changes in import and export destinations, fluctuating exchange rate, stakeholders’ feedback and supply-side capacity, we have set the target for FY18,” Tofail told reporters.
“I think we can achieve because it is a conservative target.”
The government wants to earn $30.16 billion from the RMG sector with an 8.12% growth. It also plans to earn $1.38 billion from leather industry, followed by jute and jute goods at $1.05 billion and $880 million from home-textile products.
Meanwhile, export-oriented business representatives present in the meeting urged the government to provide policy support, along with incentives, to help achieve the export target.
“The lead time is very import as businesses have to export products after importing raw materials, but we struggle to ship products due to congestion in Chittagong port,” said FBCCI president Shafiul Islam Mohiuddin.
Due to rise in e-commerce business, the buyers have broken down RMG products into several categories to have more unique and different designs to meet consumer demand, he added.
“Retailers want quick delivery, but due to congestion we are losing the competitive edge.”
Mohiuddin claimed that businesses are still not getting adequate electricity supply and they have to use costly fuel-run generators to run their factories.
“The export target is achievable, but the sector needs government support, including gas and electricity connection in the newly built Leather Industrial Park in Savar,” said a representative of Bangladesh Tanners Association (BTA).
A good number of tanners are yet to get utility services, while the width and depth of sewerage lines are not enough for waste and water to pass through, he added.
Replying to a query, Industries Secretary Muhammad Abdullah said the ministry will sit with the stakeholders in the first week of August to resolve the issues.
Stakeholders and the government also lamented the price fall of RMG products by the global retailers, devaluation of Euro, Pound and Yen.
Despite a lot of spending on safety standard improvements, exporters, especially from apparel sector, are not getting enough price for their products, said Tofail.
Export earnings and the apparel sector will turn around as it has been modernised, added the minister.
The FBCCI president urged the government to find new ways to get rid of the devaluation of the exchange rate.
He also talked about the appreciation of Bangladesh’s currency against the dollar and called for a special dollar exchange rate for export-oriented businesses.
Bangladesh’s export earnings from the apparel industry – the lifeline of foreign currency earnings – have seen only a 0.20% rise to $28.15 billion, which is the lowest on record in the last one and a half decades, in the just-concluded fiscal year.
However, Bangladesh’s overall export earnings stood at $34.83 billion in FY’17, which is 1.68% higher than the $34.25 billion a year ago. It is also the lowest in the last 15 years.
Export target set at $41bn for FY2017-18
- Ibrahim Hossain Ovi
- Published at 07:18 PM July 30, 2017
- Last updated at 11:56 PM July 30, 2017
Commerce Minister Tofail Ahmed on Sunday presides over a meeting at his ministry's conference room PID
The garment sector is expected to contribute $30.16bn to the total targeted amount
The Bangladesh government has set its export target at $41 billion, with a growth target of 7.87%, riding on apparel products, for the FY2017-18.
Of the amount, $37.50 billion is expected to come from the manufacturing sector, including the RMG sector, while $3.50 billion will come from the service sector, including computer services.
Commerce Minister Tofail Ahmed made the announcement at his office in the capital on Sunday. Commerce Secretary Shubhashish Bose was also present during the meeting.
“Taking into consideration the global economic outlook, policy changes in import and export destinations, fluctuating exchange rate, stakeholders’ feedback and supply-side capacity, we have set the target for FY18,” Tofail told reporters.
“I think we can achieve because it is a conservative target.”
The government wants to earn $30.16 billion from the RMG sector with an 8.12% growth. It also plans to earn $1.38 billion from leather industry, followed by jute and jute goods at $1.05 billion and $880 million from home-textile products.
Meanwhile, export-oriented business representatives present in the meeting urged the government to provide policy support, along with incentives, to help achieve the export target.
“The lead time is very import as businesses have to export products after importing raw materials, but we struggle to ship products due to congestion in Chittagong port,” said FBCCI president Shafiul Islam Mohiuddin.
Due to rise in e-commerce business, the buyers have broken down RMG products into several categories to have more unique and different designs to meet consumer demand, he added.
“Retailers want quick delivery, but due to congestion we are losing the competitive edge.”
Mohiuddin claimed that businesses are still not getting adequate electricity supply and they have to use costly fuel-run generators to run their factories.
“The export target is achievable, but the sector needs government support, including gas and electricity connection in the newly built Leather Industrial Park in Savar,” said a representative of Bangladesh Tanners Association (BTA).
A good number of tanners are yet to get utility services, while the width and depth of sewerage lines are not enough for waste and water to pass through, he added.
Replying to a query, Industries Secretary Muhammad Abdullah said the ministry will sit with the stakeholders in the first week of August to resolve the issues.
Stakeholders and the government also lamented the price fall of RMG products by the global retailers, devaluation of Euro, Pound and Yen.
Despite a lot of spending on safety standard improvements, exporters, especially from apparel sector, are not getting enough price for their products, said Tofail.
Export earnings and the apparel sector will turn around as it has been modernised, added the minister.
The FBCCI president urged the government to find new ways to get rid of the devaluation of the exchange rate.
He also talked about the appreciation of Bangladesh’s currency against the dollar and called for a special dollar exchange rate for export-oriented businesses.
Bangladesh’s export earnings from the apparel industry – the lifeline of foreign currency earnings – have seen only a 0.20% rise to $28.15 billion, which is the lowest on record in the last one and a half decades, in the just-concluded fiscal year.
However, Bangladesh’s overall export earnings stood at $34.83 billion in FY’17, which is 1.68% higher than the $34.25 billion a year ago. It is also the lowest in the last 15 years.
