Export target set at $54b for FY20
The government has set overall export target at $54 billion for the current financial year (2019-20) of which the share of manufactured products including apparel alone will be $45.5 billion and export earnings from service sector will be $8.5 billion, officials said.
The target is $10billion higher than last fiscal's $44 billion which however exceeded target by a robust growth of readymade garments sector exports.
The new target was set on Wednesday at a meeting in the ministry of commerce with emphasis on export diversifications in sectors like leather, jute and others treated as thrust sectors by the government.
Ministry of Commerce has formally set the target on Wednesday in a meeting which was presided over by senior secretary Mofizul Islam.
Export growth in the just concluded fiscal 2018-19 was 10.54 per cent higher than $36.66 billion target. At this growth rate it may be possible to earn $50 billion from readymade garments alone by 2021 which was set by the last government, meeting sources said.
The readymade garment export exceeded target by $1.44 billion than the government-set target at $32.68 billion for FY19. Earnings from woven increased to $17.24 billion from $15.42 billion in the previous year. Knitwear export rose to $16.18 billion in FY19 from $15.18 billion in FY18.
Readymade garment exporters said garment orders, especially from the US, increased in recent months because of the ongoing trade war between China and the US as they are increasingly imposing duty on each other's exports making Chinese apparel costlier in the US market.
In the recent days export from Bangladesh's competitors like Vietnam, India, Pakistan and Turkey have increased to the US and European countries as they have devalued their local currencies against US dollars and they are also providing other facilities to their exporters in the competitive international market.
To meet the target it is imperative to diversity export, a market analyst said and added light engineering, leather and leather goods, plastic, ICT products and some other sectors do have the growth potential for exports to contribute to higher export earnings.
He said along with manufactured products growth of service sector based exports are also rising from Bangladesh and the government expects to multiply earnings from these sectors.