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To determine the export goal for the current fiscal year, the Commerce Ministry arranged a meeting on July 12. The objective for exporting goods has been set at $62 billion at the conclusion of the meeting. Estimated growth is 11.59 percent. The $52 billion aim for the largest export industry is clothing. Exports of clothing are expected to increase by 10.87 percent.
However, Tipu Munshi, the minister of commerce, acknowledged that such a goal is unrealistic at this time. But he believes that if the supply of gas and power is ensured, this goal may be met.
The minister highlighted the data from the previous fiscal year and said that the product sector earned $55.56 billion in fiscal year 2022–2023 versus a target of $58 billion. About 95.8% of the target is represented by the amount. The traders agreed with our assertion that the goals set for the current fiscal year are attainable. In order to meet export goals, leaders of various corporate organizations have urged that gas, electricity, fuel, and other amenities be provided.
He added that by the end of 2023, numerous organizations anticipate that the majority of South Asia's economies will be experiencing positive development. If this prediction comes true, Bangladesh's GDP will expand by 6.8%. The global economy will therefore resume its growth pattern in the upcoming year.
The exporters, who anticipate a turnaround to a positive trend, are concerned, though, as the major garment markets' export growth is currently in a downward trend. The two biggest markets for clothing, the US and Germany, both experienced negative growth in the previous fiscal year of 5.51 percent and 6.81 percent, respectively. Despite this, the concerned exporters and business owners do not believe it is realistic to aim for double-digit growth in garment exports by the conclusion of the current fiscal year.
Bangladesh must address current issues, both national and international, which are reflected in the cost of producing garments. Bangladesh's garment exports were steadily rising after overcoming the effects of the Covid-19 pandemic. The war affects everyone in the world since Russia and Ukraine are parties to it. As a result, throughout the past year, inflationary conditions were a problem for all nations.
Although the picture of inflation in important markets is currently beginning to alter, there is little indication that consumer purchasing behavior or orders are changing. The government statistics show a decline in apparel production growth as a result of this circumstance. Exports to markets outside of the norm are rising. However, these markets do not make up a sizable portion of all exports.
Recent statistics from the Bangladesh Bank and the Chittagong Port Authority demonstrate that while exports have fallen in volume, their monetary worth has increased. Nearly every significant exporter reports a reduction in exports over the previous fiscal year.
The entire globe, not just Bangladesh, does not believe that such a condition will lead to growth. Instead, exports from our rival nations are also declining. For instance, despite the fact that a large portion of its rivals' exports are dropping, Bangladesh is still in a comparatively strong position.
Power, energy, banking, and National Board of Revenue crises are examples of internal crises. There are worries regarding a continuous supply notwithstanding the rise in gas and electricity prices. By the end of this year, worker wages will also rise. These are joined by concerns like VAT, bonds, and customs. Additionally, a lot of the nation's large clothing factories are unable to utilize their entire output capability. The output rise that was seen at the start of the year has generally slowed down and became negative in March.
The current state of affairs is causing the business owners in this industry great concern. Due to this circumstance, there are extremely few opportunities for double-digit growth in the upcoming fiscal year.
The export of commodities to new export markets, however, did not diversify, and global inflation may decline from November levels, according to the commerce ministry. They have established the targets based on this.
"Human lives in hope," and as positive outcomes were achieved despite global difficulty last year, we can have optimism this time as well. Even while we have little control over global concerns, we can address domestic ones like those related to electricity, energy, banking, and the National Board of Revenue. Then, we might have these chances for development.
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