A cause of concern
Staff Reporter :
Bangladesh’s pursuit of a $1 billion loan a year from the International Monetary Fund (IMF) contrasts sharply with the challenge of handling a substantial $12 billion in unrepatriated export proceeds in the last fiscal year, said Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD).
He underscored this disparity during a seminar on “Global economic slowdown, Bangladesh’s apparel industry and decent work” at the Bangladesh Institute of International and Strategic Studies (BIISS) in Dhaka.
Expressing concern, Professor Mustafizur said the widening gap between the Export Promotion Bureau’s (EPB) data and actual repatriation figures, emphasising that the disparities have escalated annually.
In FY 2022-23, the gap reached $12 billion, indicating a significant difference between the reported $55 billion in exports and the $43 billion in repatriation recorded by the Bangladesh Bank.
Questioning the whereabouts of the $12 billion, he cited potential factors such as discounts, order cancellations, and double counting, raised by exporters.
Stressing the critical role of accurate data for policymakers, he urged collaboration among policymakers, including the central bank, National Board of Revenue (NBR), and EPB, to address these discrepancies.
Also, Professor Mustafizur called for government intervention to send a “zero-tolerance” signal to individuals involved in capital flights, stressing the need for concerted efforts to repatriate earnings.
He also talked on the importance of identifying low-hanging fruits to enhance financial gains and savings.
Addressing as the chief guest Prime Minister’s former economic affairs adviser Dr Mashiur Rahman said “All of us have to look at the numbers very carefully, as the gap between EPB number of export and Bangladesh Bank number of export receipts number is big, but I guess it does all for a more intensive inquiry into how the number are produced.”
Referring to his memory, former NBR chairman said the EPB numbers are taken from the Custom entries, which are interested in the taxes they would collect.
Export is tax exempted, so what is the interest of a customs official who spent two hours on accessing the value of the export being infected.
I do not know so if you look at the number says the EPB numbers are basically what is reported by the exporter.
“Bangladesh bank number is more reliable than EPB as this number is the receipt for the value of export,” he said.
“We have to go into the differences between the Custom booking EPB collection number and Bangladesh bank number some gap what is the actual value and actual export.
To interpret the numbers think tanks are contributing, the government also is looking into the numbers, and the private sector organizations perhaps are looking into the numbers, but they can’t make it public, maybe all of these information all of this together which will be useful for the nation, added Mashiur Rahman.
Foreign Secretary Masud Bin Momen, Commerce Secretary Tapan Kanti Ghosh, and Labour and Employment Secretary Md Ehsan-E-Elahi were special guests.
BIISS chairman A F M Gousal Azam Sarker presided over the seminar, while its director general Major General Md Abu Bakar Siddique Khan delivered a welcome address.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice-President, Md Akhter Hassan Apurbo, Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) President Kamran Tanviur Rahman and ShaSha Denims Ltd managing director Shams Mahmud spoke on the occasion.
