Roadmap coming to boost exports

Reducing excessive dependence on the readymade garment sector and diversifying the country’s exports requires diversification in both products and markets to make exports sustainable. Against the backdrop of global economic uncertainty, the challenges following LDC graduation and the risk of losing duty free benefits, stakeholders are calling for an end to dependence on specific products and countries. In this context, the government has strengthened strategic measures aimed at achieving integrated diversification of products and markets.

For a long time, the bulk of Bangladesh’s total export earnings has come from a single sector, readymade garments. At the same time, there is excessive dependence on a handful of countries in Europe and North America as export markets. Such a one-dimensional structure puts the entire economy at risk during any global crisis. However, there is also significant potential to overcome this challenge. Alongside readymade garments, Bangladesh currently has opportunities to develop large markets worldwide for pharmaceuticals, electronics, processed agricultural products, leather and leather goods, light engineering and information technology. Stakeholders believe that alongside diversifying products, ensuring access to new commercial destinations and markets can help establish a balanced and long-term export base in the country.

An analysis of the latest data from the Export Promotion Bureau (EPB) shows that Bangladesh’s export sector remains heavily dependent on a single product and specific geographic markets. Against total merchandise exports of $48.28 billion in the outgoing fiscal year, more than 80 percent, or $38.53 billion, came from the single readymade garment sector. Meanwhile, the combined contribution of promising sectors outside garments, including leather, processed agricultural products, jute and pharmaceuticals, has yet to exceed 15 percent.

A similar strong one-dimensional trend is evident in geographic destinations. More than half of total export earnings come from European Union countries alone, while the United States accounts for around 20 percent of export earnings as a single country. As a result, an economic downturn or policy change in any region of Europe or North America could put the country’s overall macroeconomic stability at significant risk.

Against this backdrop, the government is formulating separate country specific export strategies for 18 strategically important trading destinations around the world. Detailed analysis of the existing potential, trade barriers, positions of competing countries and Bangladesh’s required actions in these markets is being used to prepare actionable special plans.

In this regard, a workshop titled “Bangladesh Export Diversification Strategy: Product and Market Diversification Across 18 Key Trading Destinations” was held at the conference room of the Ministry of Commerce at the Secretariat on Monday. Commerce Secretary Md. Ataur Rahman Khan chaired the workshop.

In his remarks, Commerce Secretary Md. Ataur Rahman Khan said, “To establish Bangladesh on a sustainable export structure, equal importance is being given to diversification in both products and markets. For this purpose, 18 strategically important markets around the world have been selected, and detailed country profiles and actionable strategies are being prepared.”

He further said that the action plans are being prepared based on a special matrix using information on the actual situation, potential products and existing barriers received from Bangladesh’s commercial wings stationed abroad.

At the workshop, Dr. Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), said, “In export diversification, it is essential to give equal importance to the services sector alongside products. Effective initiatives must be taken particularly to develop the information technology, skills based economy and freelancing sectors.”