Tipu Munshi blames traders for sluggish export growth
Commerce Minister Tipu Munshi has blamed readymade garment (RMG) manufacturers and exporters for reducing product prices resulting in sluggish export growth in the first four months of the current fiscal year.
The Minister said so while speaking to reporters after a meeting with RMG business leader at his Secretariat office in the capital on Wednesday.
Finance Secretary Abdul Rauf Talukder, Commerce Secretary Md Zafar Uddin, National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan, FBCCI President Sheikh Fazle Fahim, BGMEA President Rubana Haq and business leaders of the garment industry and officials of the Ministry of Commerce, Ministry of Finance, and Export Development Bureau (EPB) were present at the meeting.
The Minister said: "We have discussed various issues of the sector. Chairman of the National Board of Revenue and the finance secretary have also listened to the industry representatives about their problems and will find out ways to solve those."
Meanwhile, Export target during first four months in the running financial year has missed target by 11.21 per cent and it is 6.82 per cent lower growth over the corresponding of the last fiscal, according to Bangladesh Export Promotion Bureau latest statistics released on Tuesday.
The overall export during July-October in the financial year 2010-20 (FY20) was $12.721 billion which is $1.607 billion lower than the government set target of $14.328 billion for the period and it is also $930.56 million lower than same period of the last fiscal.
The performance in particular readymade garments (RMG) which posts over 83 per cent of the total amount also missed the target by 12.07 per cent and growth was negative by 6.67 per cent in compare with last fiscal in July-October period.
He also said the business leaders also explained the negative growth and gave suggestions on how to improve the export growth.
The Minister promised to take necessary steps on all the recommendations presented in the meeting.
The Commerce Minister said: "We have discussed various issues. NRB chairman and Finance Secretary will work to solve those problems. Business leaders have given suggestions as to how negative growth is in our readymade garments. In that sense, they will work. Some of our problems are either for clearance, take a long time to ship, stay in port for a long time. There are also many reasons. These things have been talked about."
The Minister believes that global contacts need to be enhanced in the market. Awareness about quality needs to be increased.
Traders have demanded an additional five percent exchange rate on the value added of garment export at the local level.
Minister said, "We have discussed the price of the dollar in the local market. What can be done about that is the difference between buying and selling dollars in banks and business leaders also point out."