Our export baskets yet to bring expected results in absence of promised benefits

Editorial Desk :
Bangladesh’s plans aimed at diversifying export baskets are yet to bring about the expected results as the priority sectors are not enjoying most of the benefits promised in the Export Policy for 2021-24. This means the garment sector continues its domination in the national export basket: apparel shipment accounted for 84.50 per cent of the country’s overseas sales in the July-March period of the ongoing financial year.

When the government unveiled the new Export Policy, it identified 14 sectors as the most priority ones considering their immense potential. The sectors included high-value-added denim items, manmade fibres, garment accessories, pharmaceuticals, plastic goods, footwear (leather and non-leather), leather goods, jute and diversified jute goods, agri-products and processed agro-products, fruits and cut flowers, and light engineering products.

Eighteen sectors have been named as special emerging sectors, including electric and electric goods; ceramic products; value-added frozen foods; printing and packaging; cut and polished diamond and pieces of jewelry; paper and paper products; rubber and rubber products; woollen goods; handicrafts; and lungis and handloom products.

When the policy was made public, the government promised a number of financial and other supports for the sectors to facilitate their growth, with a view to enabling them to contribute to more job creation and industrialisation, thus accelerating economic development. For instance, the sectors are supposed to receive project loans at reduced interest rates, rebates in income tax, subsidies when it comes to utility bills, and bonded warehouse facilities.

The government may promise a lot in the policy, but many of the pledges might not translate into reality for various reasons. Bangladesh needs to produce hi-tech products like semiconductors to achieve the export goal. This is because a lot of work orders are shifting to other countries from China due to geo-political tensions not only for garment items but also hi-tech products. We are hopeful that we will attain our annual export target of $80 billion at the end of 2024.