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The export of engineering equipment from Bangladesh, a potential export item for the country, dropped by 21.32 percent in July-December 2024FY as the economic slowdown continued since February 2022.
Over the last couple of years, engineering product exports were expected to increase to $1.00 billion, but unfortunately, due to stagflation caused by inflation, the export of engineering products dropped to $43 million from $54.56 million during the first six months of 2024FY, according to the Export Promotion Bureau (EPB).
Even the potential sector missed the target by 44.76 percent. However, the EPB set the export target for the fiscal year 2024 at $145.51 million.
“After a year-long lockdown, the global economy was forced to confront war tension, which contributed to the decline in the export of engineering products and tools. Despite this, the demand for Bangladeshi equipment is increasing day by day. I hope it will rise to $1.00 billion in the next fiscal year,” Abdur Razzak, President of the Engineering Equipment Manufacturers and Exporters Association (EEMEA), told the Daily Messenger.
However, trade leaders are seeking policy support from the government to adopt modern technologies. They aim to build complaint 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 will emerge as another forex-earner,” said the EEMEA president.
He further added, “We can fetch more than $34 billion from the $7 trillion-sized market if we get policy support. Unfortunately, despite the huge demand, the engineering sector cannot earn, let alone $1 billion.”
In addition, light engineering serves as a hub for nearly 800,000 jobs.
In the previous FY2021, the export of engineering products fetched $795.63 million, and $585.85 million in 2022, as per EPB data.
Bangladesh mainly exports electrical equipment, construction-related equipment and machinery parts, spare parts for paper and cement mills, bicycle light fittings, and automobile spares, train-and-rail-support equipment, marine spare parts, and the like.
However, Prime Minister Sheikh Hasina announced light engineering as the "product of the year" in January 2020, aiming to bring special attention to the sector to increase the country's foreign-exchange reserves through the export of various goods.
Messenger/Disha
