Page 14 - February-March-2020

14 15

Bangladesh bows out of

$50 bn RMG export target

for 2020-21 set in 2015

Government resets target to $38.73 bn from

RMG and $51 bn from entire textile sector

Back in 2015, Bangladesh had set an ambitious $50 solutions. Post-meeting, the government reset the
billion export target for its readymade garment earnings target from RMG at $32.69 bn for the
(RMG) by 2020-21 in line with the ruling party Awami current 2019-20 financial year. Textile Secretary Md
League’s election manifesto. The target was Mijanur Rahman said the ministry has proposed
achievable, but not easy. resetting the export earnings target to $51 billion
from the textile sector for FY 20-21 including $38.73
Secretary of textiles and jute ministry Lokman bn from RMG, $11.22 bn from packaging and
Hossain Mia said, ahead of the three-day National accessories and $1.06 bn from home textile and
Textile Day 2020 and Multipurpose Textile Fair, which terry-towel. Rahman said other ministries including
was inaugurated by Prime Minister Sheikh Hasina finance, commerce, foreign and labour would have
Wajid on January 9 in Dhaka, that the government to play their roles on this issue as 81 percent of total Exports key for sustainable growth
had prepared an elaborate action plan to make the export earnings come from the textile sector.
sector stronger. In this regard, 42 vocational State Bank governor
institutes, seven textile institutes and seven textile Bangladeshi garment exports skyrocketed in
engineering colleges were also established. Mia 2010-11 when it jumped by 43%, but such a jump is
added that nine organisations and business unlikely to be seen again as the six years since then The economy needs to be shifted from enhanced and more avenues need to be
enterprises would be awarded in different categories have only averaged 8.8%. Looking forward, a more inward-oriented to outward-oriented and with a explored to go beyond the traditional
to enhance the RMG export and speed up the accurate annual estimate might be somewhat lower greater emphasis on exports for high and commodities. He said these existing exports are
development. than 13.9%.
sustained growth, said State Bank of Pakistan declining since 2012. He emphasised the
(SBP) Governor Reza Baqir at the ‘Firms and importance of export diversification for which he
However, Mia’s own ministry recently estimated that To meet their projections, Bangladesh will have to Growth’ seminar. He said that every fourth said the government was committed to partner
the country’s RMG export earnings in 2020-21 would outperform the global apparel industry. The Asia-Pacific emerging economy has grown at an average with the private sector to address the factors that
be $11 billion short of the ambitious target. The apparel export market is expected to grow around 9% rate of seven percent since 2001 and for were constraining export growth.
estimate sets RMG export earnings in the coming annually. To achieve 10.9% growth, Bangladesh will Pakistan to achieve this average growth, it is
fiscal year at $38.73 billion. Following up on the have to gain market share from regional competitors critical to have significantly higher export growth. Umar said the government was committed to job
estimate, the Bangladeshi government is like China, India, and Pakistan, all while they seek to creation and competitiveness. He stressed that the
considering setting export earnings target at $51 grow their own garment exports. Also attending the seminar was PM’s Financial government’s protection of non-competitive
billion from the entire textile and clothing sector Advisor Abdul Hafeez Sheikh, Minister for sectors had been detrimental to economic growth.
including RMG, packaging, accessories and home In 2014, the World Economic Forum rated Planning and Development Asad Umar, and
textiles as export trend s howed that $50 bn target by Bangladesh’s infrastructure 127th out of 144 World Bank representatives. One of the seminar organisers, International
FY 20-21 would not be achieved alone from RMG countries evaluated. In order to accommodate an Growth Centre Chairperson Dr Ijaz Nabi said the
additional $25bn in RMG exports, the Bangladeshi
The textile and jute ministry held a meeting with the government will need to make considerable Baqir said Pakistan’s exports have largely fiscal responsibility and export strategy needed
remained concentrated to few sectors including
to be improved to ensure sustainable growth
stakeholders to identify deficits and any possible infrastructure investments.
textiles and agriculture, which also need to be and to avoid recurrent external account crises.

February/March 2020 January/February 2020