Photo: Messenger
Bangladesh may fall short of its export target for the fiscal year 2023-24 by $7 billion as exports are falling continuously due to the global economic situation, the decline in work orders, and the limited supply of gas and power to factories.
According to the Export Promotion Bureau (EPB), the export target for this fiscal year has been set at $62 billion. But a downward monthly export trend indicates that the country may fall short of meeting the target by more than $7 billion.
Data shows average monthly exports are $4.68 billion. But to reach the target, monthly exports should be $5.63 billion. During 11 months of FY24, export stood at $51.54 billion. This was 2.01 per cent higher than the same period of the last fiscal year, but the target was missed by 8.47 per cent. In the corresponding period of the previous fiscal year, export figures were $56.31 billion.
Experts think such kind of economic situation will not be healthy for doing business in the country. They said the government cannot control money laundering by controlling imports.
The unexpected fall in remittance makes businesses and the government more worried. This is because the government has to pay huge outstanding bills in dollar, and businesses have to import raw materials and machinery in the American currency as well.
Businessmen and economists think it is not possible to achieve the FY24 export target. They opined that it will be difficult to achieve the target due to global political unrest, high inflation, and economic crises in the export destinations and the rising cost of production.
Fazlee Shamim Ehsan, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The Daily Messenger, “Due to the increase in electricity and fuel prices as well as the minimum wage, the cost of production in the ready-made garment industry has increased manifold. But the prices of clothing products have not increased. The price per unit has even decreased.”
“On the other hand, apparel importers are ordering fewer products than before. As a result, the desired growth in export earnings has not been achieved,” he said. He also said small and medium factories are suffering more and even struggling to pay the salaries of workers because work orders have declined.
Bangladesh Garment Manufacturers and Exporters Association President SM Mannan Kochi told The Daily Messenger, “Yes, export is going down as work orders have declined. Product prices are also going down. Buyers are very reluctant to hike prices. On the other hand, new investments are becoming risky.”
According to the Bangladesh Bank data, remittances were $22.54 billion in May, $20.44 billion in April, $19.97 billion in March, $21.64 billion in February, and $21.13 billion in January. Exports were $5.72 billion in January, $5.18 billion in February, $5.10 billion in March, $3.91 billion in April, and $4.07 billion in May.
In the next budget, the government is going to allocate Tk 1,16,000 crore to pay interest on foreign loans. For that, dollar is needed.
Messenger/Disha
