Export diversification tops trade agenda
Placing export diversification at the centre of its trade strategy, the government has set an export earnings target of $63.4 billion for the current fiscal year (FY2026-27), aiming for 15 per cent growth in both goods and services exports while reducing the country’s heavy reliance on the ready-made garment (RMG) sector.
Commerce Minister Khandakar Abdul Muktadir announced the
target at a press briefing held at the Ministry of Commerce in Dhaka on Saturday (26 July).
Under the new target, $55.2 billion is expected to come from merchandise exports, while $8.2 billion is projected from services exports.
The minister acknowledged that Bangladesh fell short of its export target in the previous fiscal year following a period of sluggish growth.
However, he expressed confidence that exports would regain momentum this year, attributing the optimism to policy stability under the newly elected government and a range of business-friendly measures incorporated into the national budget.
Emphasising the need to broaden the country’s export base, Muktadir noted that the RMG sector currently accounts for around 85 per cent of Bangladesh’s total export earnings, underscoring the importance of reducing dependence on a single industry.
To support diversification, he said the government has identified leather and leather products, shipbuilding and ship recycling, light engineering and information technology (IT) as priority sectors for export expansion.
On market diversification, the commerce minister said negotiations on Free Trade Agreements (FTAs) with South Korea and the United Arab Emirates (UAE) are nearing completion.
Bangladesh also expects to conclude trade negotiations with four to five additional countries by December.
He added that the Economic Partnership Agreement (EPA) with Japan would be placed before the next session of Parliament for implementation, while the European Union has expressed interest in launching negotiations on a Free Trade Agreement with Bangladesh.
Regarding Bangladesh’s graduation from the Least Developed Country (LDC) category, Muktadir said uncertainty surrounding the transition had largely been resolved.
He added that exporters would continue to enjoy existing market access preferences for the next three years following graduation.
The minister identified energy shortages as one of the principal constraints on export competitiveness.
To address the issue, he said the government is working to install two additional Floating Storage Regasification Units (FSRUs) to increase LNG imports and improve energy supplies for industrial production.
Despite continuing global economic uncertainty and geopolitical tensions, Muktadir expressed confidence that stronger policy support, expanded trade agreements, improved energy availability and increased investment would enable Bangladesh to achieve its export target and sustain higher export growth.
