Trends show Bangladesh’s export may touch $50bn this fiscal year

Bangladesh’s export earnings may hit a $50-billion mark at the end of the current fiscal 2021-22, if the current trend continues, exporters say.

Bangladesh’s export earnings reached a record $4.9 billion in December. The export earnings were 48.27 percent higher than the same month a year ago and over 25 percent more than the target.

As a result, Bangladesh’s half-yearly export reached over $24.69 billion, 28.41 percent higher than the same period a year ago.

Exporters, however, say they are a bit concerned about the emerging coronavirus situation, which has forced many European and American markets to go for restrictions to avoid the spread of the Omicron variant of the virus.

the trend continues, we will be able to earn $50 billion in this fiscal year. Of the amount, garments will fetch $40 billion,” Muhammad Hatem, working president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told the Business Insider Bangladesh on Sunday.

He, quoting buyers, said there is no indication of fresh lockdown yet due to the new variant Omicron in different countries.

“We are following all the protocols of the ports and are very confident to surpass the target this time. But there is a little bit of tension about the new variant that may lead to complete lockdown,” he said.

Mohiuddin Rubel, a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is also optimistic about achieving the target.

“But we are anxious over the new variant of coronavirus. If we can handle the virus, I hope the export will surpass the target,” he added.

Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said after a long global lockdown, when the ports were relaxed in August, Bangladesh’s exports gained momentum. Besides, demand for products and their prices have also increased, he said.

Of the exports, knitwear continues to show its robust performance as it bagged over $11.16 billion in the first six months till December of the current fiscal year, a 31 percent higher than the corresponding period a year ago.

Woven export grew by 24.5 percent to $8.73 billion and home textile export by 31 percent to $716 million.

Agricultural products, leather and leather goods, engineering products and frozen and live fish were the other top four major export sectors.

Jute and jute goods were the only sector that saw a decline in export during July-December of the current fiscal year.

Bangladesh’s highest export was $40.53 billion in fiscal 2018-19 and it went down to $38.75 billion and $33.67 billion in fiscal 2019-20 and 2020-21 respectively due to the ongoing onslaught of the coronavirus.