Bangladesh has set a target of US $ 32.68 billion for its prime export item – readymade garments – for fiscal 2018-19, in line with the target of US $ 50 billion exports by 2021.
This would be a 6.33 per cent increase from the US $ 30.61 billion exports during the fiscal of 2017-18. The target of knitwear exports has been fixed at US $ 16.15 billion, up 7.21 per cent from the previous fiscal; and woven at US $ 16.53 per cent, up 7.21 per cent.
Commerce Minister Tofail Ahmed unveiled the export target at a press conference at his ministry office on August 8, 2018. The total export target has been set at US $ 39 billion – up 6.36 per cent from the previous fiscal. Apparel would occupy 83.79 per cent of the total.
Additionally, the cash incentive for garment exporters has been hiked to 4 per cent, from 3 per cent.
While laying out the target, Minister Ahmed said, “We do not see any major challenge in achieving the export target, though it is an election year for the country. Bangladesh has been performing strongly in overseas trade defying all the challenges in the past.”
With the higher cash incentives, garment export to some new destinations like India, China, Japan and Australia grew a lot this year, said Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), at the press conference.
Bangladesh has had an impressive run during the 2017-18 fiscal, making great strides in increasing the garment exports. During the fiscal, the apparel exporters marked a 8.76 per cent gain on a year-to-year basis – what is indeed encouraging in the competitive market where prices of apparel is falling.