With heavy reliance on RMG, Bangladesh revises down export target to $70b

The Bangladesh government has revised down the export target to $70 billion for the fiscal year 2023-24.

Earlier in 2022, the Cabinet Committee on Economic Affairs had approved the draft of "Export Policy 2021-2024", setting the $80 billion export target for FY2024.

The new target was set during a meeting of the commerce ministry today (26 June).

Of the total, $60 billion is expected from goods and $10 billion from the service sector.

The target was revised down to the turbulent global economic situation, sources said.

Garments will play a major role in goods export, comprising $50.5 billion of the total target. Of this $50.5 billion, $27.35 billion will be made up by knitwear and $23.15 billion will be woven fabrics.

Speaking to The Business Standard, Vice-President of the BGMEA Shahidullah Azim said, "This target demands on both the global and local situations. If these are stable, the target is attainable."

He further said before the breakout of the Russia-Ukraine conflict, Bangladesh's exports were experiencing moderate growth. But the volatile economic situation meant businesses were struggling as buyers were not paying on time.

"If this is normalised, then we can meet the target," he said, adding, however, it also relied on the local situation as it was election year.

"Apart from the local and global political and economic situation, for industries the utility supply still remains a challenge," he said.

In the current fiscal year, the RMG export target was $46.8 billion. In 11 months, $42.6 billion has been achieved.

Expectation from other sectors

Among other major sectors, home textiles is expected to contribute $1.23 billion, jute and jute products $1.02 billion, leather and leather goods $1.30 billion and agriculture $0.96 billion to meet the export target.

In FY22, agricultural exports had touched $1 billion. But in the past 11 months, it has earned $795 million.

Export target for the fiscal year 2021 was $60 billion.