Inconsistent policies and regulations have been a persistent thorn in the side of Bangladesh’s export sector, hampering its potential for growth and diversification.
This issue again came to the forefront at the recent Sanem Annual Economists’ Conference, where experts emphasized the critical need for sweeping policy reforms to unleash Bangladesh’s full export potential.
With an import tariff line standing at a staggering 40 percent, Bangladesh finds itself at a significant disadvantage compared to its regional counterparts like India, Malaysia, and Vietnam.
This high tariff rate places an undue burden on exporters, making it exceedingly difficult for them to compete in the global market.
Vietnam’s success story serves as a stark contrast to Bangladesh’s struggles. Vietnam’s strategic policies, particularly those supporting foreign direct investment (FDI) and targeted sectoral growth, have propelled its exports to remarkable heights.
Meanwhile, Bangladesh has fallen behind due to a lack of timely policy interventions and support mechanisms.
Exporters rightly identify untapped potential in sectors like leather and agriculture, which could emerge as significant contributors to the economy if provided with the necessary support and infrastructure.
However, without comprehensive policy reforms addressing issues such as supply chain management, connectivity, and value-chain integration, this potential will remain untapped.
Furthermore, the presence of anti-export policies and high tariffs on raw materials only exacerbate the challenges exporters face. Despite the government’s stated intentions to diversify exports, the lack of specific policy support has hindered progress.
As experts underscore, export diversification isn’t just a matter of economic growth—it’s a crucial tool for poverty reduction and employment generation.
To this end, the government must take decisive action to dismantle trade barriers, reduce protectionist measures, and provide the necessary support to foster a diverse and resilient export sector.
Bangladesh cannot afford to remain stagnant while its neighbors surge ahead. The time for action is now. A comprehensive, well-thought-out export policy—one that addresses the concerns raised by experts—is imperative. By seizing this opportunity, the government can drive economic growth, create jobs, and uplift millions out of poverty. It’s a challenge that cannot be ignored, and the stakes couldn’t be higher.