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The government has set an export goal of $52 billion from textile products in FY24, the greatest contributor to national exports, with a projected rise of 10.66 percent.
The prediction states that out of $52 billion, knitted products will bring in $28.30 billion and woven clothing will bring in $23.70 billion in FY24.
On July 12, in front of guests from the garment industry, Commerce Minister Tipu Munshi presented the $72 billion export goal for products and services for the current fiscal year.
Of which $10 billion comes from services and $62 billion from exports of products.
The garment industry will be essential in achieving the challenging goal as it contributed 84.58 percent, or $46.99 billion, in the previous fiscal year. Additionally, the industry exceeded its goal by earning $46.99 billion instead of the projected $46.80 billion.
The administration took into account the graduation of LDCs, the drop in demand due to rising inflation, the Russia-Ukraine War, and the current state of the world economy when establishing the aim.
The RMG industry is scheduled to provide $52 billion, or nearly 85 percent, of the government's FY24 target, paving the path for earnings of $100 billion by 2030.
Against a target of $58 billion, Bangladesh earned $55.55 billion in FY23, representing a 6.67% increase.
Despite being rather ambitious, the goal can be reached by assuring the supply of gas and electricity as well as by resolving the currency crisis, according to economists and business leaders.
Letters of credit (LCs) need to be opened in order to produce items for export. But imports are being hampered by the dollar issue. Therefore, according to Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the government must ensure that there is a sufficient supply of USD to open LC.
Achieving the goal would be challenging, he added, if industries are unable to operate at full capacity due to gas and energy supply problems.
"It was anticipated that the export goal would not be achieved given the current domestic and global economic crisis. Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, "However, we achieve double-digit growth in export revenues and surpass the aim.
Conditions domestically and internationally have somewhat improved this year, which is encouraging. Taking these into account, it appears that the export goal for the current fiscal year will be met, according to Hassan.
But there are several critical issues that must be appropriately addressed, according to the company executive, like stifling the supply of energy and gas and maintaining reasonable utility service costs.
The current volume of work orders, the ongoing economic crisis, and greater inflation in export destinations are the barriers to achieving the goal. To reach the goal, we would be searching frantically for new markets and customers, added Hassan.
He continued, "The government must offer financial incentives against the exports of goods made with manmade fiber in order to achieve target value added goods and non-cotton items."
According to Zahid Hussain, a former chief economist for the World Bank's Dhaka Office, "it seems that the export target is achievable provided that improvement in the global economic recovery and domestic business environment."
In the US and some of the European Union countries, there was fear of a recession, but the current situation indicates that this worry is past. However, the economist pointed out that inflation is declining and that there is more employment, which lowers the unemployment rate.
According to Hussain, the exporter's capacity to accept work orders and guarantee on-time delivery is currently the most crucial concern.
For this, the government must provide a reliable supply of gas and power for manufacturing. A tranquil economic environment and political stability are also crucial, he continued.
"In the most recent fiscal year, we observed an increase in the demand for apparel items in non-traditional areas. It will continue to be active for the current fiscal year. According to Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, "exporters and policy makers have to concentrate on seeking more new markets to attain the export target because there are political challenges in large and traditional export markets.
However, in addition to their current product line, exporters also need to create new products for new markets. According to the economist, value-added products are crucial since they pay more than basic things.
He continued that government incentives are necessary for the creation of innovative products and value-added items.
By 2030, the clothing exporters' platform BGMEA established a goal of $100 billion in RMG shipments. The exporters have taken into account the moving of orders from China to Bangladesh, the increased production of mid-range items, and the fabrication of additional non-cotton items in order to achieve the aim.
"The current economic crisis slowed the demand for apparel items. However, Bangladesh is performing better than its rivals on the international market. It's a healthy indicator, according to Shahiduallah Azim, vice president of the BGMEA.
Our exporters are incredibly robust, and we are taking a variety of actions to increase our market share, mostly by focusing on non-cotton and value-added goods. Azim indicated that this would significantly increase earnings.
He continued, "We are focusing on technical clothing like the uniforms used by professionals in other service sectors, while diversifying the products and markets. It is quite possible to achieve the target."
He expressed the belief that gradual export target achievement will ultimately open up avenues for achieving our mega export aim of $100 billion by 2030.
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