Bangladesh's export earnings declined sharply in February, falling 12.03 per cent year-on-year to US$4.41 billion, according to data released on Monday by the Export Promotion Bureau (EPB).
Exports stood at US$3.97 billion in the same month of 2025.
Overall export receipts during the July-February period of the current 2025-26 fiscal year dropped 3.13 per cent to US$31.90 billion, compared with US$32.94 billion in the corresponding period a year earlier.
The ready-made garment (RMG) sector - the backbone of the country's export economy - recorded a 13.21 per cent year-on-year fall in February, with earnings declining to US$2.82 billion from US$3.24 billion in the same month last year.
During the July-February period of FY2025-26, RMG exports totalled US$25.80 billion, marking a 3.73 per cent decrease from US$26.79 billion in the previous fiscal year.
Of this, knitwear exports amounted to US$13.69 billion, down 4.56 per cent year-on-year, while woven garment exports stood at US$12.11 billion, reflecting a 2.79 per cent decline.
For February alone, knitwear exports reached US$1.40 billion, down 15.46 per cent, while woven exports totalled US$1.42 billion, a decrease of 10.86 per cent compared with February 2025.
Industry insiders attribute the downturn to mounting operational challenges, including difficulties in importing raw materials, which have forced many factories to curtail or suspend production.
Exporters say high lending rates, rising electricity and gas tariffs, and limited access to foreign exchange for opening letters of credit (LCs) have compounded the strain on manufacturers.
Additional pressure has come from higher taxes and VAT on various products, introduced following policy recommendations from the International Monetary Fund (IMF), as well as increased gas connection charges for new industrial units.
Business leaders warn that, under current conditions, the survival of many industrial enterprises has become increasingly uncertain.
President of the Bangladesh Chamber of Industries (BCI), Anwar-ul Alam Chowdhury, said that despite the depreciation of the taka, the single borrower exposure limit for banks has been reduced from 25 per cent to 15 per cent, with unfunded exposure capped at 10 per cent, further tightening credit access.
He added that export-oriented industries often have to wait between nine months and a year after applying for cash incentives.
Meanwhile, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Mohammad Hatem, said a number of factories had already shut down, with more likely to follow.
Exporters, he noted, are grappling with multiple unresolved challenges, particularly in the energy sector, law and order, banking services and customs procedures.
"If these structural problems are not addressed promptly, export earnings will inevitably decline further," he warned.
