Govt likely to nod new export policy on Monday

The government has set a target to earn $80 billion from exports by fiscal 2023-24 by diversifying the country’s export baskets, according to a draft export policy.

The new export policy that has been drafted for fiscal 2021-22 to fiscal 2023-24 will be placed before the cabinet meeting to be chaired by Prime Minister Sheikh Hasina on Monday, according to a senior commerce ministry official.

The government set this target, though not very ambitious considering the current fiscal year’s export trend, it won’t be easy to achieve amid challenges of squeezing trade benefits following Bangladesh’s graduation from the LDC status.

The new policy has been formulated taking into account the Eighth Five-Year Plan, Fourth Industrial Revolution and prospects of IT-related items, said the official.

Yet, he believes diversification of export baskets remains a big challenge for the country.

“Our major challenge lies with export diversification, which has become further slow due to the coronavirus pandemic,” Md Hafizur Rahman, additional secretary of the commerce ministry, told the Business Insider Bangladesh.

“Relying on only one item - readymade garment – is a very weak point for the country’s export earnings,” he said.

Rahman said the commerce ministry has a project on export diversification and the government provides incentives against export of 42 items, which may be increased for the time being to help the country diversify her exports.

In the previous export policy for fiscal 2018-19 to 2020-21, the country has a target to bag $60 billion from export by 2020-21. But the export receipts were only $44 billion.

“If we manage to tap into more sectors like leather, footwear, plastic and shrimp, we can earn nearly $22 billion more annually," said the additional secretary who is involved in drafting the policy.

Regarding foreign direct investment in Bangladesh, the additional secretary said Vietnam is one of the top FDI recipient countries in the world. But there are advantages and disadvantages of FDI, he noted.

“We need foreign investment in the leather sector as we have adequate raw materials,” said Rahman.

According to him, there are scopes for diversification in the country’s apparel sector as Bangladesh exports mainly basic items.

The new draft policy has incorporated the adverse impacts of the protracted pandemic on the country’s exports, said Rahman.