With a 6.78% growth projection, Bangladesh government hast set exports target of $32.69 billion for the apparel sector, the lifeline of the country’s export earnings for the current fiscal year. Meanwhile, Bangladesh has also set overall export target of $39 billion for goods for the FY19.
Commerce Minister Tofail Ahmed on 8 August set the target for the Fiscal Year 2018-19.
“In the last fiscal year, Bangladesh has been able to achieve the export target of $41 billion as most of the sector has registered positive growth except leather and leather goods,” Tofail Ahmed said.
“Considering the global business scenario and exporters capacity, we have set export target at $44 billion, of which $39 billion come from goods and $5 billion from service sector,” said Ahmed.
Of the target from goods, $32.69 billion will be expected to come from the apparel sector, the minister added. Of the total amount, $16.15 billion and $16.53 billion will come from Knitwear and woven products respectively.
In the FY 18, Bangladesh’s export earnings from the RMG sector stood at $30.61billion, posting 8.76% growth. Of the total amount, Knitwear products earned $15.18 billion, which is 10.40% higher than the $13.76 in the same period a year ago. Woven products earned $15.42 billion, up by 7.18%, compared to $14.39 billion a year ago.
This year we have given importance on products diversification as well as market diversification, said Ahmed adding that the target would be achievable.
Meanwhile, Bangladesh’s export earnings rose by 5.8% to $36.66 billion in the last fiscal year, while the country earned $34.65 billion from exports in FY17.
Exporters Association of Bangladesh (EAB) Abdus Salam Murshedy said that this target is achievable as the country has approved capacity in terms of workplace safety. However, the government has to provide proper policy support, said Salam also a former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He also called for increasing the logistic support at the Chittagong port and to improve efficiency of the employees.
Meanwhile, the Federation of Bangladesh chamber of Commerce and Industry (FBCCI) Shafiul Islam Mohiuddin urged the government to concentrate on products diversification to meet the target.
As of now, Bangladesh export is highly dependent on RMG sector. Therefore, the government has to take steps to create opportunities for non-RMG sector, said Shafiul Islam Mohiuddin.
He also called for looking beyond the traditional markets such as Japan, China, Russia and Middle East countries.