Bangladesh’s export receipts registered a 30.86% year-on-year (YoY) growth to $33.84 billion in the first eight months (July-February) of the current 2021-22 fiscal year, Export Promotion Bureau (EPB) data shows.
The country had previously roped in $25.86 billion in the same period of FY21.
Meanwhile, Bangladesh also saw $4.29 billion in export earnings in February — a 34.54% YoY growth.
The figure was also 18% more than the targeted earnings.
The apparel sector, the highest earner from export receipts, registered a YoY growth of 30.73% to $27.50 billion; in FY21, the sector had brought in $21.03 billion.
Among apparel products, knitwear registered a growth of 32.87% to $15.07 billion, while woven garments saw a growth of 28.23% to $12.43 billion, the data also shows.
Home textiles, a new player in the export basket, registered a growth of 35.98% to $993.73 million in the first eight months of FY22.
Among other notable sectors, during the same period, agricultural products registered a growth of 28.6% to $853.2 million, from $666.67 million in the last fiscal year.
Leather and leather goods marked a growth of 29.61% to $784.98 million, which was $605.67 million in the last fiscal year.
The engineering products, another promising export sector of the country, marked a growth of 56.65% to $534.38 million from $342.44 million last year.
However, similar to past months, jute and jute products registered a fall of 7.34% to $799.42 million, which was $862.74 million in the same period of the last FY.
Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said entrepreneurs are working hard to sustain this trend of export growth.
“However, Bangladesh needs to simplify the ease of doing business to sustain this growth. The order numbers are growing, infrastructural development is urgent to sustain it,” he added.
There are problems at the ports, customs, etc. and Bangladesh has to adopt good policies like competitive countries, he added.
“Moreover, the cost of doing business here is high and entrepreneurs have to address policies to solve this. If the problems related to VAT, tax, port, NBR can be solved, the growth will sustain for the coming years,” he added.
Regarding the ongoing Ukraine-Russia conflict, he said that bilateral trade between Bangladesh and Russia is worth nearly $1 billion, while two-way trade with Ukraine amounts to about $350 million.
He also said that Bangladesh may shield itself from any immediate impact, but the price of oil is rising at an alarming rate globally, which will affect the transportation of export-import goods.
“There is a possibility of order cancellations if the war is prolonged. Moreover, shipping may be disrupted due to the war,” he added.
Professor Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), said that the export earnings from the RMG sector and other sectors such as engineering, agriculture, and home textiles are increasing, which is a good sign for export diversification.
However, he pointed out that the base of this growth rate is relatively low and the export earnings are mainly volume-driven, not price-driven.
“Manufacturers increase exports to make up for losses triggered by the rising prices of intermediate goods or raw materials,” he added.
However, jute export growth has been consistently negative, though it is eco-friendly and biodegradable. It is important to find out the causes behind it, he added.
Meanwhile, the Cabinet on Sunday gave its approval to the draft "Export Policy 2021-24" with a target of $80 billion export for the 2023-24 fiscal year.
