Export earnings top $34b in FY16 [ Tritiyo Matra News ]

Export earnings top $34b in FY16

Local July 14, 2016

Country’s export earnings in the just concluded financial year 2015-16 stood at $34.24 billion with a 9.72-per cent growth thanks to a commendable performance by the readymade garment sector.
Export earnings in FY16 were 2.21 per cent higher than the government-set target of $33.50 billion.
Export Promotion Bureau data showed that the export earnings in June this year stood at $3.57 billion against $3.06 billion in the same month of last year.
The export earnings in FY15 were $31.20 billion.
Experts and exporters said that the country achieved a satisfactory export earnings growth in FY16 and the performance was expected in the financial year as country was free from political turmoil during the period.
They, however, said that the overall export growth was dependent only on the RMG sector and the country should emphasise on both product and market diversification.
According to the EPB data, the export earnings from the RMG products in FY16 stood $28.09 billion with a 10.21-per cent growth from $25.49 billion in the FY15.
The RMG exports exceeded by $722.53 million its government-set target of $27.37 billion in FY16.
‘The export earnings growth in FY16 is satisfactory but 10 per cent growth was expected,’ Policy Research Institute executive director Ahsan H Mansur told New Age.
He said that an unrest-free environment in the country and excellent performance by the RMG sector were the reasons for the good export growth in FY16.
‘But concerns remain. Product diversification is not taking place and the overall export earnings growth is dependent only on RMG products,’ Mansur said.
He said that security would be another challenge in coming days and the recent terror attack at Gulshan in Dhaka might impact on export earnings in this fiscal year.
‘If the buyers fear to visit Bangladesh, a negative impact on export earnings might be visible in coming fall and winter seasons,’ Mansur said.
The EPB data showed that export earnings from knitwear in the just concluded financial year 2015-16 grew by 7.47 per cent to $13.35 billion from $12.42 billion in FY15.
Woven export in FY16 grew by 12.81 per cent to $14.73 billion from $13.06 billion in FY15.
‘Growth in the RMG export in last fiscal year is satisfactory but we need 12 per cent growth to achieve the $50-billion export target by 2021,’ Shahidullah Azim, former vice-president of the Bangladesh Garment
Manufacturers and Exporters Association, told New Age.
He said that political stability and rising demand in the new markets helped the RMG sector to achieve over 10 per cent earnings growth in FY16.
Azim said that dependency on only one product was risky for the country and the government should take initiative for export diversification.
Echoing Mansur, Azim also said that the security issue might be the next challenge for Bangladesh to retain steady export earnings growth in coming days.
According to the EPB data, jute and jute goods export in FY16 increased by 5.88 per cent to $919.58 million from $868.53 million in FY15.
Leather and leather goods export in FY16 grew by 2.69 per cent to $1.16 billion from $1.13 billion in FY15.
Leather export in the financial year 2015-16 fell by 30.10 per cent to $277.90 million from $397.54 million in FY15 while leather product export grew by 55.81 per cent to $388.22 million.
Shrimp export in FY16 fell by 7.33 per cent to $472.37 million from $509.72 million in FY15.