Bangladesh sets $63.5b export target for FY26, 16.5% higher than FY25

Infographics: TBS

Highlights:

• The target is 16.5% higher than the earnings in FY 2024–25.
• $55 billion is expected to come from goods
• $8.5 billion from services
• Projected export earnings from goods include:
  • Woven garments: $20.79b
  •  Knitwear: $23.70b
  •  Leather and leather goods: $1.25b
  •  Jute and jute goods: $900m
  •  Agricultural products: $1.21b

The government has set a target to earn $63.5 billion from the export of goods and services in the 2025–26 fiscal year. Of this, $55 billion is expected to come from goods and $8.5 billion from services.

The target is 16.5% higher than the earnings in FY 2024–25. The Bangladesh Bank expects service sector earnings to surpass the commerce ministry's projection.

Commerce Secretary Mahbubur Rahman announced the target today (12 August) at a press conference organised by the commerce ministry at the Secretariat. Commerce Adviser Sk Bashir Uddin, senior ministry officials, and leaders from various business sectors were also present.

The secretary said the targets were set after discussions with stakeholders from relevant sectors. Starting next week, the ministry will hold meetings with industry leaders to identify one or two major bottlenecks for each sector and work with the concerned agencies to resolve them.

Commerce Adviser Sk Bashir Uddin described the target as "quite conservative" and expressed hope that actual exports would exceed expectations.

Industry leaders present expressed optimism about achieving the target but stressed the need to address domestic challenges, particularly the gas crisis, banking sector instability, customs inefficiencies, and law-and-order issues.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), who attended the press conference, said the government's target was achievable, and that exports could surpass the target, especially due to progress in reciprocal tariff negotiations with the United States.

However, he stressed that certain domestic challenges must be addressed, particularly the gas crisis, severe problems in the banking sector, improvement of customs services, and law-and-order conditions.

Mohammad Hasib Uddin, a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said exports could exceed the target if energy, banking, and customs problems were resolved.

FTA negotiations ongoing

Commerce Adviser Bashir said that Bangladesh is working on market expansion for non-traditional products and exploring new destinations. Negotiations for free trade agreements (FTAs) are ongoing with Japan, South Korea, and Singapore, though he cautioned that not all FTAs may be favourable for Bangladesh.

The adviser emphasised maximising duty-free market access, especially in the UK and EU, and said discussions are underway to lower the United States' reciprocal tariff from 20% to 15%.

The adviser said that the United States' counter-tariff was not reduced to 20 per cent by making concessions on any issue that would cause economic harm to the country. The trade deficit between the two countries will be addressed by increasing imports of food and agricultural products.

When asked when a formal agreement on reciprocal tariffs with the United States would be signed, the commerce adviser said that no specific date has been set yet, and the US side has not provided any information so far.

Asked about India's ban on jute product exports through land ports, he said it would not significantly affect exports. The commerce ministry had sent a letter to its Indian counterpart and was addressing the matter with due sensitivity.

In response to another question, Sheikh Bashiruddin said that although there are problems with the law-and-order situation in the country, it is not so unstable that it would affect business and trade. Therefore, the export targets that have been set will not face any issues.

The adviser also stated that permission will be granted to import onions to increase supply in the local market. He said, "This time, onions will be imported based on demand and supply. Not only from India, but traders will be allowed to import from wherever they want."

"Our main objective is to lower onion prices and increase supply," he said.