Foreign secretary Masud Bin Momen.
Foreign secretary Masud Bin Momen on Sunday said that the recent US presidential memorandum had indeed created apprehension in the Bangladesh industrial sector because of the possibility of restricted entry to the United States market.
He made the remark at a seminar on ‘Global Economic Slowdown, Bangladesh’s Apparel Industry and Decent Work’ organised by Bangladesh Institute of International and Strategic Studies in the city.
Masud also said that the significant progress Bangladesh made so far for improving work conditions for workers would be greatly hampered if such restrictions were applied.
The foreign secretary said that if any restrictions were imposed it might have negative consequences in sourcing materials from and exporting to other countries.
‘It is a responsibility of entrepreneurs, buyers, development partners, importing countries and regions, expert and other stakeholders to collaborate in overcoming these challenges, ensuring sustained success of the industry and well-being of our workers,’ the foreign secretary said.
He said that Bangladesh’s economy was affected by combined impacts of the Covid pandemic and the Russia-Ukraine war.
The global turmoil has resulted in a reduction in demand for readymade garment products leading to a decline in export earnings, he said.
In the seminar, Centre for Policy Dialogue distinguished fellow Mustafizur Rahman raised a question over the $12 billion gap between export earnings data of the Export Promotion Bureau and the Bangladesh Bank, saying that the policymakers should come together to resolve the issue.
The difference between the figures of the EPB and the Bangladesh Bank have been increasing every year and it has reached $12 billion in the financial year 2022-23, which was only $2 billion a few years ago, he said.
The policymakers should come together to resolve this and give a zero-tolerance signal to those who are taking out money from the country through capital flights and through not repatriating the export earnings, Mustafiz said.
‘We are negotiating with the International Monetary Fund for $1 billion in one year and here we are talking about $12 billion of differences between what the EPB export figures are showing and what the actual figure of earnings are being shown by the BB,’ the economist said.
He said that a $12 billion gap in data means Bangladesh had exported $55 billion as per the EPB data and the country received $43 billion as per the BB data.
‘When we ask about the $12 billion, you say there are some discounts, some orders are cancelled and there are some double counting but I think it is a very important issue,’ Mustafiz said.
He also said that many of the problems that the Bangladesh economy had been facing originated from global reasons but it should not be forgotten that many of the difficulties had been created due to the lack of the adaptation of the right policy in right time, he said.
Regarding the US presidential memorandum on labour rights, former economic affairs adviser to the prime minister, Mashiur Rahman, said that there was an apprehension that the commitments of Bangladesh to labour and human rights would affect the country’s exports and economy but he was optimistic that the memo would not hamper business.
‘Bangladesh is one of the cheapest suppliers of readymade garments to the US and the EU market. We have to see what proportion of their import is made by Bangladesh. They cannot immediately switch their production from Bangladesh to other country,’ Mashiur said.
Regarding the mismatch in export earnings figures he said that the EPB collected data from customs based on shipments of goods and the BB data was the actual receipt.
He said that the data of the Bangladesh Bank was more reliable.
Mashiur, however, said that the differences in numbers between the EPB and the BB required examination.
BIISS research director Mahfuz Kabir presented his keynote paper in the event that said that Bangladesh had been facing increased economic and development challenges due to the cumulative effects of the Covid pandemic and Russia-Ukraine war and the resultant disruptions in global input-output supply chain and energy crisis.
He mentioned that Bangladesh’s RMG industry marked a significant stride in a sustainable fashion but in recent days it was facing challenges stemming from cost escalation due to depreciation of currency and the price hike of imported and local inputs.
To navigate current challenges of the RMG sector, he recommended ethical buying and diversification within the sector.
Commerce ministry senior secretary Tapan Kanti Ghosh said that diversification of exports remained a challenge over the years and the government had taken an initiative to break the barrier.
He said that Bangladesh’s apparel sector had successfully secured its hold on new markets in Australia, Japan and South Korea.
Labour secretary Ehsan-E-Elahi said that improvement in legal frameworks was the precondition for ensuring labour rights.
He informed that Bangladesh had ratified a number of international conventions on labour and the country had also amended its labour law time to time to fulfil the requirements of the International Labour Organisation.
Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan mentioned that geopolitical tensions and repercussions of the Covid pandemic were major reasons behind the global economic slowdown which had been hampering the growth of apparel exports.
He said that to achieve the target of $100 billion of export by 2030, diversification of product, fibre and market would be the key priorities.
‘In recent years, we made significant investments in high value-added segments like active wear, outwear, denim, lingerie, suits, fancy dresses and formal wear. The BGMEA is also working to develop luxury dresses for ladies using our centuries-old heritage material Jamdani and Muslin fabric,’ Faruque said.
Metropolitan Chamber of Commerce and Industry, Dhaka president Kamran Tanvirur Rahman stressed the need for adopting an integrated and comprehensive strategy to address the dual problem of depreciation of the taka and dwindling forex reserves.
To face the potential challenges stemming from LDC graduation and evolving geopolitical scenario, he suggested diversification of export products and markets.
Director general of BIISS Major General Md Abu Bakar Siddique Khan delivered the welcome address and chairman of BIISS AFM Gousal Azam Sarker presided over the seminar.
New Age
