Professor Mustafizur Rahman on plummeting export earning

Published in New Age on Tuesday, 9 December 2014.

Export earnings fall short of target by 5pc in July-Nov

Staff Correspondent

A file photo shows employees working in a garment factory in Dhaka. The country’s export earnings in the first five months of the current fiscal year 2014-15 fell short of target by $665.44 million or 5.23 per cent mainly due to either sluggish or negative growth in export of major products, mainly apparel items. — New Age photo
A file photo shows employees working in a garment factory in Dhaka. The country’s export earnings in the first five months of the current fiscal year 2014-15 fell short of target by $665.44 million or 5.23 per cent mainly due to either sluggish or negative growth in export of major products, mainly apparel items. — New Age photo

 

 

The country’s export earnings in the first five months of the current fiscal year 2014-15 fell short of target by US$ 665.44 million or 5.23 per cent mainly due to either sluggish or negative growth in export of major products, mainly apparel items.

Export earnings in the period, however, came out from negative territory which the country experienced in July-October for the first time in last five years and grew by 0.92 per cent on remarkable growth in November, according to official data of Export Promotion Bureau.

Monthly export growth in November picked up by 9.27 per cent, the data released on Monday showed.

In July-November of FY 2015, the country’s export earnings registered at US$ 12.07 billion against the target of US$ 12.74 billion.

In the same period of last fiscal year, export earnings stood at US$ 11.96 billion.

The single month export earnings in November surpassed its target by 5.53 per cent to US$ 2.42 billion against the target of US$ 2.29 billion, the data showed.

Centre for Policy Dialogue executive director Mustafizur Rahman termed the growth in July-November frustrating as the country’s export earnings would have to grow by around 13 per cent to achieve the target set for the entire year.

Growth in export earnings at 0.92 per cent is not a good sign while the country has set a target of achieving 10 per cent growth in FY15, he said.

He, however, expressed hope that the export earnings would pick up in coming months as exporters were getting orders in increased volume from international buyers and countries facing slowdown in economy started to turn around.

Now, the exporters and the government would have to intensify their efforts to diversify export products and markets and increase productivity and competitiveness particularly in readymade garment sector, he added.

They would have also to work on increasing volume of export to countries where Bangladesh gets duty-free and quota-free market access, he added.

According to EPB data, the export of knitwear items under RMG sector grew by 2 per cent in July-November while export of woven garments registered negative growth by 1.26 per cent.

Both the items, however, failed to achieve the target set for the period, the data showed.

In July-November, export earnings from woven and knitwear items stood at US$ 9.69 billion against the target of US$ 10.31 billion for the period.

In the same months of the last fiscal year, export earnings from the sectors were US$ 9.65 billion, according to the data.

Leather and leather products export grew by 4.15 per cent to US$ 463.12 million in the first five months of the FY15 from US$ 444.68 million in the same period of the FY14.

Home textiles export grew by 0.28 per cent to US$ 298.61 million in the July-November period of the FY15 from US$ 297.78 million in the same period of the FY14.

The export of jute and jute products increased by 4.89 per cent and stood at US$ 348.64 million in the period which was US$ 332.40 million in the same period of the FY14.