RMG sector optimist of meeting $50b export target by 2021
Published : Friday, 14 September, 2018 at 12:00 AM Count : 444
The export performance of the readymade garments (RMG) has improved over the past several months to a level, which if maintained could achieve the government vision of exporting RMG worth $50 billion by 2021.
New export destinations, increasing volume and stable prices in the international market are contributing a lot to earning foreign exchange earnings in the RMG sector despite some turbulent scenarios both in local and abroad.
After Rana Plaza collapse the sector has been facing pressure of maintaining compliance issues and settling workers' minimum wage.
Apart from facing problems domestically the sector has been facing another pressure due to falling trend in RMG prices due to slow growth of their economy.
Mohiuddin Faruqui, a former BKMEA Vice President told this while talking with The Daily Observer on apparel sectors' recent developments and earnings.
He said: "We import everything including cotton and machineries and despite being an import-based economy, Bangladesh is ahead of many RMG exporting countries, who have their own cotton and machinery."
Faruqui has been a Commercially Important Person (CIP) for the last five consecutive years since 2009 and in 2007 he had won the one time export trophy.
He said despite facing multiple problems Bangladeshi has been advancing ahead and its exports are picking up after slow growth in the last financial year.
He said: "Even few days back we were thinking that it may not be possible to meet the government target of exporting $50 billion by 2021 as then the export was showing falling trend."
But Faruqi who is also Managing Director of the Multifabs Fabrics a leading knitwear exporting company said in the current financial year export growth was positive as new export destinations were emerging besides the existing European and US markets.
Regarding the government's decision of providing cash incentives to nine new sectors including pharmaceutical besides the RMG sector, he said it was a good step of encouraging the diversified sectors including pharmaceuticals.
He said pharmaceuticals industries is becoming a strong sector expanding exports to over 100 countries.
He said the government's new incentive package will also boost the apparel industry to look for new market and to make their business profitable at rising costs of doing business caused by marinating compliance and increased wages.