In September, Bangladesh's export earnings reached an impressive $3.52 billion, marking a 6.78% increase compared to the same month last year. Over the July-September quarter, exports rose by 5.04%, totalling $11.37 billion. Such figures are encouraging.
The garment sector, responsible for approximately 85% of our export earnings, recorded a 5.43% rise, generating $9.28 billion during the same period. However, this growth is clouded by increasing concerns about the sustainability of such gains.
Global economic conditions remain precarious due to ongoing geopolitical tensions, the repercussions of the pandemic, and inflationary pressures. With the dollar crisis looming, the stability of our garment industry hangs in the balance, particularly as orders from traditional markets dwindle.
Significantly, the recent adjustments in export data by Bangladesh Bank, which corrected a reported error of around $14 billion, expose long-standing discrepancies that have plagued our economic reporting. This revelation highlights a deeper issue: a potential trade deficit that has been underestimated. Such a reality raises questions about the feasibility of the ambitious export target of $110 billion by 2027, especially in the face of structural vulnerabilities.
Moreover, the current unrest within the garment sector adds another layer of complexity. Workers are demanding fair wages in light of rising living costs, and their frustrations are justified. The slow progress of the Wage Commission exacerbates this dissatisfaction, threatening to ignite widespread labour unrest. As Dr. Debapriya Bhattacharya from the Centre for Policy Dialogue warns, this situation could lead to catastrophic consequences for the sector and, by extension, the national economy.
While the government is exploring options to support exporters, including the proposed export development fund, the efficacy of these measures will largely depend on swift and decisive action. Delays in addressing wage issues or failing to diversify our export base may result in irreversible damage to the garment industry, especially for factories which are shut down in response to diminishing orders.
As we reflect on these developments, it is crucial to acknowledge the potential for growth while remaining vigilant about the hurdles ahead. The road to sustainable export earnings is fraught with challenges, and it will require coordinated efforts from the government, industry leaders, and workers alike. The time for dialogue and action is now-only through collaboration and then we can safeguard the future of our export sector.
