The government has identified a range of products to diversify the country’s export basket, which heavily relies on readymade garments.
In his budget speech delivered in parliament on Thursday, Finance Minister Abul Hassan Mahmood Ali, mentioned pharmaceuticals, ICT, shipbuilding, light engineering, furniture, agro-processing, leather, and diversified jute products as the other potential sectors that can fetch a log of forex.
For the export basket diversification, he also cited electronics and home appliances, rubber, paper, printed materials, packaging and ceramics as the other promising export goods for the country.
“To develop these products, existing problems and opportunities have been identified, and necessary actions have been taken accordingly,” Ali told the parliament while placing the national budget for the upcoming 2024-25 fiscal.
Bangladesh bagged a record $47 billion from apparel shipments in 2022-23 fiscal year, which accounted for 84.58% of its total export earnings of $55.56 billion for the year.
This heavy reliance on RMG exports is likely to pose a challenge for the Bangladesh economy after 2026, when it will lose most of its preferential trade facilities due to graduation from the LDCs bracket.
To broaden the foreign markets for the country’s garment industry and other exportable goods, the government has already emphasised processed food, leather goods, light engineering products, and pharmaceuticals alongside readymade garments, the finance minister said.
He further said the government plans to update the current Export Policy 2021-24 and has finalised the draft of the Export Policy 2024-27 to address the challenges of post-LDC graduation.
The new export policy sets a target of earning $110 billion from exports by FY27.
In addition to the export basket, Mahmood Ali also highlighted the importance of diversifying the export destinations, which are now confined to a handful of countries.
“It is essential to ensure the balanced development of local industries, encourage investment, and enhance product competitiveness. To this end, the government has developed the National Tariff Policy 2023,” he said.
TBS