Govt expects to touch $50bn milestone in export earnings in FY22

[Black_cats]

Govt expects to touch $50bn milestone in export earnings in FY22

ECONOMY
Reyad Hossain
26 June, 2021, 10:40 pm
Last modified: 27 June, 2021, 09:41 am

Govt expects to touch $50bn milestone in export earnings in FY22

Due to the negative growth in the last fiscal year and the slow growth in the current one amid the pandemic, the EPB reduced the export earnings target by $10 billion

www.tbsnews.net

Due to the negative growth in the last fiscal year and the slow growth in the current one amid the pandemic, the EPB reduced the export earnings target by $10 billion
Representational Image. File Photo: Mumit M/TBS
" style="box-sizing: inherit; cursor: pointer;">[IMG alt="Representational Image. File Photo: Mumit M/TBS
"]https://tbsnews.net/sites/default/f....jpg?itok=RkHm8sc-&timestamp=1622740365[/IMG]
Representational Image. File Photo: Mumit M/TBS

Highlights:

• In 2016, the commerce ministry aimed to increase export earnings to $60bn by 2021.
• The authority has reduced the target by $10bn, and expect to reach it in FY22
• In FY21, export earnings may reach $45bn
• 10% growth in export earnings expected in FY22
• Expected export earnings growth in different sectors in FY22:
• Bangladesh's exports fell by about 17% in FY20 due to Covid-19

The Ministry of Commerce and the Export Promotion Bureau (EPB) expect Bangladesh's product and service exports to reach the $50 billion milestone in the upcoming FY22.
Exporters and economists believe that this amount of exports will be possible as the developed countries' economies have started turning around after tackling the Covid-19 crisis.

Five years ago, the commerce ministry set a target to increase Bangladesh's export earnings to $60 billion by 2021. Of this, the exporters were dreaming of earning $50 billion by exporting garments, the country's main export item.

Due to the negative growth in the last fiscal year and the slow growth in the current one amid the pandemic, the EPB reduced the export earnings target by $10 billion, said officials concerned.

EPB Vice-Chairman AHM Ahsan told The Business Standard, "In FY21, the earnings from product exports may reach around $38.5-39 billion and services exports $6.5 billion. That means export earnings may reach around $45 billion in total. We expect more than 10% growth in export earnings in the next fiscal year."

The EPB estimates that the knitwear exports will grow by 11% and woven garment exports by 9% in the next fiscal year.

Mohammad Hatem, first vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association, thinks that the knitwear exports will grow by 15% in the next year. In the 11 months of the current financial year, the export growth in this sector was more than 20%.

On the other hand, Bangladesh Garment Manufacturers and Exporters Association Vice-President Md Shahidullah Azim told TBS that the woven garments exports could grow by 7%, but it will depend on the Covid-19 situation in the country.

Despite the Covid-19 situation, the country's agricultural products exports have grown by more than 16% till May this year. The EPB has projected 12% growth in this sector in the upcoming fiscal year.

The home textile exports have grown by 55% until May this year, and the EPB expects 20% growth in the next fiscal year.

In FY21 the exports of the jute and jute products were positive, while the local jute mills faced a raw material crisis to meet the demand for such products in the international market. The exports of these products have grown by more than 33% till May in this fiscal year and the EPB expects it to grow by 20% in the new fiscal year.

In the first 11 months of FY21, exports of leather and leather goods have grown by 14%, while the EPB expects 12% growth in the next fiscal year.

The exports from the pharmaceuticals sector have also increased due to the Covid-19 pandemic. So far, these exports have increased by 19%, while the government is expecting 15% growth in the next fiscal year.

Besides, the EPB expects 20% growth in the engineering product exports, 8% growth in the frozen fish exports and 15% growth in ceramic products exports.

In the first 11 months of the current fiscal year, the engineering products exports grew by 79%, frozen fish exports by less than 1% and ceramic products by 5%.

The EPB officials said production and international trade collapsed in the wake of the Covid-19 pandemic last year. As a result, Bangladesh, like other countries, witnessed negative growth in exports in the last fiscal year, compared to FY19.

An EPB official said high growth has been achieved in the export of goods in various sectors in the current fiscal year, compared to the weak growth in the last fiscal year. But, it will not be possible to achieve growth at this rate in the next fiscal year. Therefore, in most sectors, the growth target for the next fiscal year has been set lower than this time.

Abdus Salam Murshedy, president of Exporters Association of Bangladesh, told TBS that if the current barriers to exports are removed, it is possible to achieve the target of $50 billion in the next fiscal year. He called for simplification of port infrastructure, customs and VAT system.

Contradicting the EPB's expectation of 8% growth in frozen fish exports, SM Amzad Hossain, one of the country's largest frozen fish exporters and former president of the Bangladesh Frozen Foods Exporters Association, said their exports would not increase in the current situation, but could fall by 25%.

However, if the production and export of the vannamei shrimp (whiteleg shrimp) is allowed, the export may increase.

Dr Ahsan H Mansur, executive director of the Policy Research Institute, told TBS, "Demand is growing in Europe and America, and it will grow more. It is a big export market for Bangladesh.

So, we have an opportunity to increase our exports in the next fiscal year. The EPB's target of $50 billion export earnings is easily achievable."

According to the EPB, Bangladesh's exports fell by about 17% in the FY20 due to the Covid-19 pandemic. That year, Bangladesh exported goods worth $33.67 billion and services worth 6.13 billion - $39.8 billion in total.

In the first 11 months of the current fiscal year, exports of goods stood at $35.18 billion. The EPB did not release data on service exports after the three-month period from July to September. The country exported services worth $1.45 billion in these three months.

At the beginning of the current financial year, the government had set a target of earning $41 billion from product exports and $7 billion from services – $48 billion in total.

 

[bluesky]

Govt expects to touch $50bn milestone in export earnings in FY22

A country should be ambitious and set many goals for which people would be working hard to achieve. Let us see what happens next year this time to our export earnings.

However, relief from the corona remains elusive and is not yet under control.

 

[Destranator]

I will celebrate they day we reach a sustainable (i.e., lasting) trade surplus. Despite so much progress in exports, we have struggled to arrest climbing import bills.

Non-essential imports should be taxed heavily. Any business which attempts to manufacture a new product locally which is otherwise imported in large quantities should receive tax holidays.

 

[SpaceMan18]

I will celebrate they day we reach a sustainable (i.e., lasting) trade surplus. Despite so much progress in exports, we have struggled to arrest climbing import bills.

Non-essential imports should be taxed heavily. Any business which attempts to manufacture a new product locally which is otherwise imported in large quantities should receive tax holidays.

Yes , a self sufficient BD is a good BD but sadly BD imports more than it exports in the end of the day. We should try to climb up the ladder and try to make most technologies our selves cause that matters a lot towards development.

 

[bluesky]

Yes , a self sufficient BD is a good BD but sadly BD imports more than it exports in the end of the day. We should try to climb up the ladder and try to make most technologies ourselves cause that matters a lot towards development.

I think it would be very difficult for us to make many of the machines that are used to produce consumer goods.

So, for now, we can concentrate on importing more technology products/ machines that are used to produce goods domestically and import less quantity of consumer luxury goods.

Within a few decades, many companies/ people will go for producing machines or machine parts for use by industrial factories.

 

[SpaceMan18]

I think it would be very difficult for us to make many of the machines that are used to produce consumer goods.

So, for now, we can concentrate on importing more technology products/ machines that are used to produce goods domestically and import less quantity of consumer goods.

Within a few decades, many companies/ people will go for producing machines or machine parts for use by industrial factories.

Well we have to develop these machines quick since we don't have time to waste due to us being a smaller nation. We must try our best to make these machines , reverse engineer or anything honestly.

BD can't afford to be less technologically advanced , we should try to make these machines in 15 years from now anyways.

I just can't accept a less technologically advanced BD , it just doesn't add up

 

[Bilal9]

we have struggled to arrest climbing import bills

You hit the nail on the head there.

However - at the risk of sounding like a broken record, I say - follow the money.

Why are our trade policies being manipulated to ease imports from a certain large neighbor? While they restrict our exports to them under shaky, flimsy pretexts? You can guess...

And we should not blame that country, we should blame our corrupt ministers and NBR for doing this. Our fault for not exposing this low-life crooks for taking a few crore Taka in bribes and then letting that country profit in the hundreds of Millions of dollars.

What country in the world lets another country do that? Not many.

 

[bluesky]

Well we have to develop these machines quick since we don't have time to waste due to us being a smaller nation. We must try our best to make these machines , reverse engineer or anything honestly.

BD can't afford to be less technologically advanced , we should try to make these machines in 15 years from now anyways.

I just can't accept a less technologically advanced BD , it just doesn't add up

You are in a hurry to produce mechanical goods in the country. But, the GoB is not. It does not understand how to mechanize but continuously talks about Digital Bangladesh.

We are led by stupid politicians.

 

[SpaceMan18]

You are in a hurry to produce mechanical goods in the country. But, the GoB is not. It does not understand how to mechanize but continuously talks about Digital Bangladesh.

We are led by stupid politicians.

Not just stupid , more like traitorous politicians

 

[bluesky]

Not just stupid , more like traitorous politicians

Some important person said if a country's top politicians want it to develop, whatever may be its current position it develops fast because any country has tremendous potential.

BUt, when BD is unable to produce even 200 years old1IR technology goods, for example, steam/ diesel locomotives, its politicians talk about 4IR technologies, rocket science, and jet planes.

 

[SpaceMan18]

Some important person said if a country's top politicians want it to develop, whatever may be its current position it develops fast because any country has tremendous potential.

When BD is unable to produce even 200 years old1IR technology goods, for example, steam/ diesel locomotives, its politicians talk about 4IR technologies, rocket science, and jet planes.

Under this video there's a pinned comment that summarizes what a nation should try to strive for , and Bangladesh has the brilliant minds , less resources which forces innovation and access to the seas which can make it developed if the dam leaders wanted.

Again BD is heavily corrupt and there is no nationalism amongst the people , if the politicians don't care about the country neither will it's people.

If BD leaders want to be corrupt , be the corrupt leader that industrializes the nation and eventually spreads it's own influence on foreign nations.

But yeah space program well if the Indians can do it , so can BD heck even better seeing the terrible leadership at the Indian Space Program

 

[VikingRaider]

Not just stupid , more like traitorous politicians

If Bangladesh will import less , then their commission will be less. So an industrial Bangladesh will in the end benefit common people and will be less beneficial for politicians and beurocrats, or other corrupted people.

Although I am in doubt that actually who isn't corrupted in Bangladesh?

Many people are honest because they don't have the options to become corrupted.

 

[F-6 enthusiast]

Under this video there's a pinned comment that summarizes what a nation should try to strive for , and Bangladesh has the brilliant minds , less resources which forces innovation and access to the seas which can make it developed if the dam leaders wanted.

like these soviet montages

this ones called time forward, shows how the USSR industrialised and became a global power in a 3 minute montage video