Bangladesh's export sector, heavily concentrated on RMG industry, as a major engine of economic growth, is contributing over 84 percent of total export earnings.
While other sectors like pharmaceuticals, leather, jute, agro-processed goods, automobile industry and ICT are not gaining traction likewise the RMG sector. In the export basket, the country's overall export base remains narrow and mostly dependent on a few markets.
President of Dhaka Chamber of Commerce and Industry (DCCI) Taskeen Ahmed, made the observation at a seminar on "Export-import policies in Bangladesh: Requirements and Challenges upon LDC Graduation" held on May 24, at DCCI auditorium.
He later suggested policy support and financial help for the potential non-RMG sectors. Moreover, he stressed on adopting a balanced and predictable tariff policy to facilitate import of raw materials and capital goods.
To avoid mismatch of export and import policy, a comprehensive trade policy is essential as this practice sustains in other neighboring economies, he opined.
He said Bangladesh's import composition reflects a strong industrial reliance on foreign inputs, including capital machinery, raw materials and intermediate goods. This structural dependence has made the economy particularly vulnerable to external shocks.
Moreover, recent inflation surge coupled with ongoing U.S. reciprocal tariffs and export ban by India have exerted significant pressure on the country's balance of payment, foreign exchange reserve and import control mechanisms.
Consequently, businesses are struggling to source essential materials, which is undermining their competitiveness and production capacity, he added.
Dr. Selim Raihan, Professor of Economics, Dhaka University and Executive Director, SANEM said customs duties and tariff rates in Bangladesh are higher compared to neighboring countries.
Moreover, the country has still high dependence on import taxes. Lack of reform in the taxation sector and the government's inability to raise taxes through direct taxation resulted in high dependence on indirect taxes and import taxes.
He said Bangladesh maintains higher tariffs, non-tariffs and complex para-tariffs compared to its peers, with manual customs and import-substitute protectionist tendencies in some sectors.
Lutfey Siddiqi, Special Envoy to the Chief Adviser on International Affairs said structural and institutional reforms among the government agencies are also necessary, and the pace of doing the reforms needs to be faster.
He said institutionalizing and government readiness are the master-key of development. He added that ports are the heart of the economy, so it is important to ensure logistic and keep their management running and operating smoothly.
Dr. Anisuzzaman Chowdhury, Special Assistant, Economic Relations Division (ERD), Kazi Mostafizur Rahman, NBR member after post-LDC era, as various negotiation processes, there should be private sector participation.
He later informed that an initiative has been taken to start a central bonded warehouse and hoped that this facility could be provided to all by next July.
Md. Anwar Hossain, Vice Chairman, Export Promotion Bureau (EPB) emphasized effective policy support rather than cash incentives will be the key to meet the challenges of post-LDC era.
Md. Fazlul Haque, former President, BKMEA, Md. Moshiul Alam, Joint Chief, Bangladesh Trade and Tariff Commission, Syed Almas Kabir, former President, BASIS, Dr. Md. Zakir Hossain, Managing Director, Delta Pharma Ltd, Fakir Kamruzzaman Nahid, Managing Director, Fakir Fashion Ltd, DCCI Directors A.K.D. Khair Mohammad Khan, M. Bashir Ullah Bhuiyan, and Joint Convenor Salahuddin Yusuf, among others, participated in the open discussion.
Senior Vice President of DCCI, Razeev H. Chowdhury, Vice President Md. Salim Sulaiman, members of the Board of Directors, and stakeholders from both public and private sectors were present.
