Exports in July Stand at $3.48 Billion

The interim government plans to revise the "Export Policy 2024-27," originally approved under the previous administration, due to its unrealistic targets based on inaccurate export data. An advisory council meeting will review the policy, potentially leading to lower export targets and changes to incentives for exporters. The initial policy aimed for an ambitious export income target of $110 billion by 2027, requiring exports to more than double within three years, a goal many officials deem unattainable.

The cabinet has approved the export policy for 2024-27, aiming for merchandise exports worth $110 billion by the end of the 2026-27 fiscal year. The new policy includes thrust products such as vegetables and handicrafts, while dyeing, printing, finishing, spinning, and fabric manufacturing have been designated as special development sectors.

Bangladesh's export earnings for the first quarter of FY25 rose by 5.04%, reaching $11.37 billion despite production disruptions due to student protests, curfews, and labor unrests. Exporters, however, have expressed skepticism about the growth, citing significant industrial impacts during this period.

Bangladesh's export earnings showed positive growth in July, the first month of FY25, reaching $3.84 billion, a 0.4% year-on-year increase despite political upheaval. The readymade garments sector, a key contributor, saw growth, with knitwear and woven garments earning $1.73 billion and $1.45 billion, respectively.

Bangladesh's apparel exports to the European Union decreased by 4.84% in the first seven months of 2024, amounting to $11.11 billion, down from $11.68 billion in the same period of 2023. This decline is slightly better than the overall decrease of 5.22% in EU imports, which fell to $49.85 billion from $52.60 billion.

Starting December 1, 2024, Bangladesh, along with other least developed countries (LDCs), will enjoy zero-tariff access for all products exported to China. This move by China, as announced by its Tariff Commission, aims to benefit LDCs with diplomatic ties, including 33 African countries.