Photo : Messenger
The exports of engineering equipment, a potential export item of the country, have marked decline by 8 percent in July–November period of the ongoing 2023-24 fiscal year as the economic slowdown has continued biting since February 2022.
Engineering product exports were supposed to increase to $1.00 billion in a couple of years as per the target, but due to stagflation caused by inflation, exports of engineering products dropped to $200.82 million from $218.32 million during the first five months of 2023-24 FY, according to the Export Promotion Bureau (EPB).
This potential sector has even missed the export target by 19.31 percent. The EPB, however, set the target of exports for the fiscal year 2023-24 at $630 million.
Abdur Razzak, President of the Engineering Equipment Manufacturers and Exporters Association (EEMEA), told The Daily Messenger, "After the yearlong lockdown, the global economy was forced to embrace the war tension, which fueled a decline in the export of engineering products and tools. However, the demand for Bangladeshi equipment is increasing day by day.
I hope, it will rise to $1.00 billion next fiscal year.”
However, the business leaders sought the policy support of the government to adopt modern technologies as they want to build compliance factories to attract international buyers.
"But its main obstacles are the lack of international-standard certification, skilled manpower, infrastructure, and branding. If we could overcome these problems, the country's engineering products would emerge as another forex-earner,” he said.
He also said, “We can fetch more than $34 billion from the $7 trillion market if we get policy support. Unfortunately, despite having huge demand, the engineering sector cannot earn as expected.”
In addition, he noted, light engineering is a hub for nearly 8,00,000 jobs.
In FY2021, the export of engineering products fetched $795.63 million and $585.85 million in 2022, revealed the EPB data.
Bangladesh mainly exports electrical equipment, construction-related equipment and machinery parts, spare parts for paper and cement mills, bicycle light fittings, automobile spares, train-and-rail-support equipment, marine spare parts, and the like.
However, Prime Minister Sheikh Hasina in January 2020 announced light engineering as the "product of the year" in an attempt to bring special attention to the sector so that it increases the country's foreign exchange reserves through the export of various goods.
Messenger/Disha
