Bangladesh’s export growth rose to 11%, or more than $27bn, in the just concluded fiscal year, riding out the country’s political upheaval, labour unrests and global economic slowdown.
However, the growth fell 3.51% short of the target of $28b set by the Export Promotion Bureau (EPB) of Bangladesh for fiscal year 2012-13 ended on June 30, according to its data released yesterday.
In the previous fiscal year, exports registered about 6% growth to $24.3bn, which was 8.5% lower than the target.
The growth of the fiscal year was driven by woven garments that surged 14.96% to over $11bn and knitwear garment exports 10.43% to over $10bn.
In the previous fiscal year, the country’s knitwear garment export grew 0.05% to $9.5bn and woven garments 13.89% to $9. 60bn.
In June, the export was up by 16% to $2.7bn from the same time period a year ago, the EPB data showed. The June export achievement is 5% down from the target of $2.83bn.
Abdus Salam Murshedy, president of Exporters Association of Bangladesh, told the Dhaka Tribune that the double digit growth is not abnormal taking the current strength and capability of the country’s export-oriented sectors into account.
He termed the export growth satisfactory amid the political and industrial unrest, particularly in the readymade garment sector, in the country during the last fiscal year. Had there been no unrest, the export performance would have been even better than the present state.
However, he blamed the political and labour unrest for the failure to achieve the target in readymade garments exports.
Pointing fingers at the Rana Plaza building collapse that killed more than 1,100 people and the fire incident at Tazreen Fashion, he said these two incidents have brought a massive challenge for the country’s garment sector, leading to the target shortfall.
Murshedy, also an ex-president of Bangladesh Garment Manufacturers and Exporters Association, hoped that if we can ensure standard working environments and worker safety, we could meet the target with continuous growth in exports.
He also hoped that the US government would restore the suspended GSP facilities in due time as both the government and the stakeholders are very much sincere to this end.
Asked about the challenges ahead of the government and the industry owners in the new fiscal year, he said although it is the election year, hopefully there will be political stability for the sake of the export-oriented sector.
The export trend for leather and leather products except plastic products maintained their upward trend during the July-June period of last fiscal.
Leather exports totaled $399.73m, while leather products totalled $161.62m, cotton and cotton products together earned $124.96m, plastic products $84.51m and rubber $13.57m.
Ships, boats and floating structures registered a sharp decline in the fiscal year by 87.53% or $5.73m.
Frozen foods saw a 9.12% decline among the major sector, followed by engineering 2.14% and plastic products 4.71%.
The positively performing sectors include spices, fruits, silks, pepper and pepper products, and pharmaceuticals.
The negative performers include home textile, raw jute, speclised textile, glass and glass-ware, iron steel, stainless steel, tea, tobacco and frozen fish.