Govt sets $33.5 billion export target for FY16 [ Tritiyo Matra News ]

Govt sets $33.5 billion export target for FY16

Local July 27, 2015

The government has set the export earning target at US$ 33.50 billion with a single digit year-on-year growth of 7.83 per cent for the current financial year 2015-16.
Commerce minister Tofail Ahmed on Sunday announced the export target at the Export Promotion Bureau in the city.
This is the lowest target rate since FY09 when the target rate was 15.50 per cent.
The export target from the knitwear products was set at US$ 13.26 billion for the FY16 which is 6.75 per cent higher than US$ 12.42 billion earned in the FY15 while target from woven garments was set at US$ 14.10 billion with 7.97 per cent growth.
Before setting the export earning target for the FY16, the commerce minister held several meetings with the stakeholders and the EPB officials.
The commerce minister said that the target for FY16 will be fulfilled as the government has set a pragmatic target considering the national and international economic situation.
The country’s export earnings in FY2014-15 stood at US$ 31.19 billion with a shortfall of US$ 2 billion from the government-set target of US$ 33.20 billion.
The export earnings growth was hit 13-year low at 3.35 per cent year-on-year in the FY16 as the growth was the lowest since the FY2001-02 when it was 7.43 per cent.
Tofail Ahmed said that though the export earnings in the FY15 failed to meet the target in value the volume of export increased more than 1.5 times in the period compared with FY14.
The commerce minister said that due to devaluation of Euro, the export earnings from the European Union decreased by 30 per cent.
‘I hope the US$ 50 billion export earning target by 2021 will be achieved as the government emphasized on product and market diversification in its sixth 5-year plan,’ Tofail said.
To achieve the export target, the government would promote pharmaceuticals, shipbuilding, leather, jute and furniture sectors through providing cash incentives against exports, he said.
At the meeting, EPB vice-chairman Shubhashish Bose said the export target has been set considering the trend of month-wise export growth during the FY 15, post-recession recovery in the US economy, falling commodity prices on the global market, slow recovery of EU economy, depreciation of Euro and Ruble and relocation of tanneries from Hajaribagh to Savar this year.
The government has set export target from leather and leather products at US$ 1.21 billion with a growth of 7.28 per cent.
The government has set export target for agricultural products at US$ 595.00 million with 1.53 per cent growth. Earning target from jute and jute goods sector has been set at US$ 947.00 million with a year-on-year growth of 9.03 per cent.
Earning from frozen food and live fish has been set at US$ 578 million with a year-on-year growth of 1.76 per cent while earning target from engineering products has been set at US$ 520.58 million with a 16.45 per cent growth.
The Federation of Bangladesh Chambers of Commerce and Industry vice president Mahbubul Alam urged the government to strengthen the activities of the commercial wings in several Bangladesh missions abroad to facilitate exports.
Bangladesh Garment Manufacturers and Exporters Association vice president Shahidullah Azim said that if the government ensures gas and uninterrupted power supply the export of readymade garments would increase by three billion US dollars and 3-5 lakh new employment would be generated.
Reaching the export target of US$ 33.50 billion in FY16 will be easier if the government provides necessary supports to the exporters, he said.