Bangladesh's IT exports declined in July-March of the outgoing FY24, highlighting the country's struggle to gain a foothold in the global information and communications technology sector.
According to data from the Export Promotion Bureau (EPB), earnings of IT firms dropped 2.33% to $407.07 million in the first nine months of FY24.
In the same period a year prior, shipments stood at $416.79 million.
Software exports dropped by 25% to $28.6 million and computer consultancy services plummeted 45% to $14 million.
Earnings from IT-enabled services, however, increased by 4.64% to $361.30 million.
If the current IT export trend persists, the sector might see a drop in shipments for the second year in a row.
In FY23, overseas sales from the industry fell for the first time in five years.
Industry people said the fact that the country has failed to produce big IT firms is an ominous sign for the government's export diversification efforts.
Readymade garments account for about 85% of Bangladesh's earnings from the external sector.
The export fall in July-March came although exporters are benefiting from a higher dollar rate, which has gained by 35% against the taka in the past two years.
An explanation might be that exporters are not bringing in proceeds since the local currency is expected to weaken further amid the persistently lower level of foreign currency reserves.
Pakistan's IT exports increased 25% year-on-year to $2.93 billion in July-May of FY24 although the country is far behind Bangladesh in various economic and social indicators.
Industry insiders said Bangladesh is poised to miss its target to export IT products worth $5 billion by 2025.