Bangladesh (Commonwealth Union)_ Commerce Minister Tipu Munshi announced that the government has set a target of $72 billion in export earnings from goods and services in FY24, reflecting an 11.5 percent increase compared to the previous year. Munshi stated on Wednesday that the government plans to reach this target by exporting goods worth $62 billion, an estimated increase of 11.6 percent from the previous year, while service exports are estimated to contribute $10 billion.
Munshi expressed hope for growth in revenue from service exports, which were anticipated to contribute $9 billion in the last fiscal year. The minister acknowledged the ambitious nature of the new target but emphasized that it is attainable if Bangladesh can ensure a stable power supply. According to Munshi, factors such as domestic gas and power shortages, as well as non-cooperation from the National Board of Revenue, have been taken into consideration when setting this target.
According to Commerce Secretary Tapan Kanti Ghosh, in the previous fiscal year, although a target of $58 billion had been established, the actual revenue amounted to $55.56 billion, exceeding the previous year’s target by 6.67 percent. Further, the export earnings by product category indicate a 10 percent increase in the garment sector, while other sectors such as leather experienced a decline in revenue, resulting in an overall growth rate decrease of 6.7 percent. Ghosh attributed the drop in demand for Bangladeshi products in American and European markets to inflation; however, this crisis is expected to relax by November. The new export target has been established in consideration of the estimated global inflation decrease.
For the current fiscal year, the export target for services has been set at $10 billion, projecting a year-on-year growth rate of 11.11 percent. Last fiscal year, earnings from service exports amounted to $9 billion. Responding to a question, the minister mentioned that Bangladesh possesses certain advantages, including a skilled labor force and affordable product costs. Moreover, global businesses are shifting their industries from China due to geopolitical reasons, and Vietnam is experiencing a labor shortage, creating opportunities for Bangladesh to capitalize on. Munshi expressed that by effectively making use of these advantages, exports could surpass the set target.
