The Financial Express

Govt may set $41b goods export target

| Updated: July 16, 2020 11:57:59

Picture used for representation Picture used for representation

The government is likely to set US$41.0 billion goods export target for this fiscal year (FY), 2020-21, predicting over 21 per cent growth, sources said.

It is also going to fix additional $7.0 billion earnings from export of services, projecting more than 9.0 per cent growth.

According to the projection, ready-made garment (RMG) sector is likely to earn $33.78 billion in the current fiscal, against $27.94 billion in the just concluded fiscal, they added.

The sector contributed about 83 per cent of the country's total export earnings last fiscal.

The Ministry of Commerce (MoC) will announce the export target for FY 2020-21 today (Thursday) after a meeting with the stakeholders concerned.

The target in the just concluded fiscal was $45.50 billion and $8.5 billion from export of goods and services respectively.

The country fetched $33.67 billion by exporting goods, which was 25.99 per cent lower than the target. The earnings declined by 19.63 per cent compared to $40.53 billion in FY 2018-19, according to the Export Promotion Bureau (EPB) data.

In last fiscal, export earnings from service sector stood at $6.39 billion against the target of $8.5 billion.

The EPB, however, proposed the MoC to set $37.44 billion goods export target for FY 2020-21, predicting a 13 per cent growth. It also proposed $7.6 billion in earnings from export of services, officials said.

When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Dr Rubana Huq said export targets are usually set at a higher level.

But she hopes that this year's targets will be realistic, considering faltering progress in containing the pandemic along with the slowdown in global trade and demand.

"So we have to remain cautious about the developments in the global market, especially changes in retail and consumer behaviour as well as post-COVID market disruption including financial due diligence and rise in online retailing."


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