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Wednesday, June 19, 2024

RMG exports from Bangladesh decline by over 17 percent in May

Export Promotion Bureau (EPB) data reveals, the overall export earnings dropped by 16.6 percent to $4.07 billion in May, from $4.85 billion in May ‘23. However, However, RMG sector saw a 17.19 percent year-on-year decline in May, dropping to $3.35 billion.

The decline in textile and RMG exports in May are in contrast to a 27 percent increase in Pakistan’s textile exports in May ’24. That shows that Pakistani entrepreneurs have withstood the challenge of global gloom in textile market.

In the July-May period of the current fiscal year, Bangladesh earned $51.54 billion through goods export, which is 2.01 percent higher than the same period of FY23. Until April of the current fiscal year, export growth was 3.93 percent year-on-year. May earnings were 23.75 percent lower than the commerce ministry’s $5.34 billion target.

The EPB data shows that during the July-May period of FY24, the ready-made garment (RMG) sector, the primary export contributor, recorded a 2.86 percent year-on-year increase, reaching $43.85 billion in earnings. Leather and leather products and home textiles exports saw 21.7 percent and 12.7 percent negative growth respectively in May FY24. The jute and jute goods also saw 12.3 percent year-on-year negative growth to $68.3 million in May. Home textile marked persisting negative growth of 24.29 percent to $776.06 million, down from $1.02 billion in the mentioned period of last fiscal.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President SM Mannan Kochi attributed the reduced apparel export demand to the global economic situation.  “Every economy is facing challenges due to the war between Russia and Ukraine, as well as the tensions in the Middle East resulting from conflicts between Israel and Iran,” he said.

Fazlee Shamim Ehsan, vice president of the Bangladesh Knitwear Manufacturers and Exporters said export figures for May reflect the real scenario of our export earnings, adding, “Usually, exports jump every month before Eid but last month was exceptional, showing negative growth mainly due to low gas supply to industries.”

Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon told TBS that the gas crisis has been a persistent problem for many months now. However, the crisis intensified recently after cyclone Remal battered the country.

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