Concerted efforts needed to fix huge mismatch in export data: Prof Mustafizur

Collaboration among policymakers, including the Bangladesh Bank, the National Board of Revenue (NBR), and the Export Promotion Bureau (EPB) is crucial to address huge mismatch in export data, said Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD).

Bangladesh's pursuit of a $1-billion annual loan from the IMF stands in stark contrast to the daunting challenge of handling over $12 billion in unrepatriated export proceeds in the last fiscal year 2022-23, he said.

Professor Mustafizur expressed his concern over the huge amount of unrepatriated export proceeds as per the Bangladesh Bank data against $55 billion exports calculated by the EPB during a seminar on "Global economic slowdown, Bangladesh's apparel industry and decent work" at the Bangladesh Institute of International and Strategic Studies (BIISS) in Dhaka on Sunday.

The widening gap between the EPB data and actual repatriation figures emphasises that the disparities have escalated annually, the CPD distinguished fellow said.

Questioning the whereabouts of the $12 billion, he cited potential factors such as discounts, order cancellations and double counting.
Stressing the critical role of accurate data for policymakers, Professor Mustafizur urged collaboration among the policymakers and government agencies concerned.

The CPD distinguished fellow called for government intervention to send a "zero-tolerance" signal to individuals involved in capital flights, stressing the need for concerted efforts to repatriate the earnings. He also highlighted the importance of identifying low-hanging fruits to enhance financial gains and savings.

Addressing as chief guest prime minister's former economic affairs adviser Mashiur Rahman said it is crucial for the people concerned to find the numbers very carefully as the gap between the figures of the EPB and the Bangladesh Bank is huge.

"It requires a more intensive inquiry into how the numbers are collected," he added.

Referring to his memory as a former NBR chairman, Mashiur Rahman said the EPB numbers are collected from the customs entries.

Bangladesh Bank figures are more reliable than the EPB data as the numbers are the receipt for the value of exports, he said.

Collaboration needed to overcome from any potential trade restriction

Addressing as special guest Foreign Secretary Masud Bin Momen acknowledged that recent statements by senior US officials regarding potential market restrictions have caused apprehension among the exporters.

"It may have negative consequences in sourcing materials from and exporting to other countries. The significant progress met so far for improving work conditions for our workers will be greatly hampered."

Overcoming these challenges and securing the industry's continued prosperity will require strong collaboration among various stakeholders, he said.

Mustafizur Rahman also pointed out the widely acknowledged pressure from the US regarding minimum thresholds for union membership in Bangladesh.

"We can say that we have signed all the conventions. But the issue is about enforcement and if you review the new EU GSP terms, you will see that there is so much pressure on ensuring gender rights and good governance and saving the environment."

He went on to say, "We cannot ignore what the US has said; we cannot ignore the EU either. So, we have to be more proactive rather than being reactive."

Among others, Commerce Secretary Tapan Kanti Ghosh and Labour and Employment Secretary Md Ehsan-E-Elahi were special guests at the seminar presided over by BIISS Chairman AFM Gousal Azam Sarker.

Bangladesh Garment Manufacturers and Exporters Association President Faruque Hassan, Bangladesh Knitwear Manufacturers and Exporters Association Vice-President Md Akhter Hassan Apurbo, Metropolitan Chamber of Commerce and Industry President Kamran Tanviur Rahman and ShaSha Denims Ltd Managing Director Shams Mahmud spoke as panellists.

Mahfuz Kabir, Research Director of BIISS, presented the keynote presentation at the seminar.