Dhaka: As Bangladesh’s export trade is heavily dependent on apparel contributing the lion’s share of the country’s export earnings, Commerce Adviser Sk. Bashir Uddin has strongly affirmed the government’s stance regarding diversification of exportable items other than RMG. The commerce adviser came up with such a stance while giving an interview to the national news agency BSS at his office at Bangladesh Secretariat.
According to Bangladesh Sangbad Sangstha, Bashir emphasized the bright prospects in sectors like leather, fish, shrimp, jute, and jute goods. However, he noted that their export growth had not declined suddenly but was a result of the previous AL regime’s actions. He highlighted the vulnerability of the country’s heavy reliance on a single product like RMG, even though it has achieved export growth. Before the 1980s, Bangladesh’s exports were dominated by a few primary products, with a brief diversification in the late 1980s when garments and non-garment exports nearly equaled. Despite a compound annual growth rate of 7.6% for non-RMG exports, garment exports surged at 14.6% annually, making Bangladesh’s export basket one of the least diversified globally.
The commerce adviser pointed out that the Jute Diversification Promotion Center (JDPC) introduced 284 diversified jute products, but these could not fetch significant earnings. He criticized the imposed growth during the previous regime and stressed serious consideration of the actual achievements. Bashir mentioned ongoing initiatives in potential sectors like leather and leather goods in consultation with the industries ministry, aiming to resolve issues at Savar Tannery Estate by the year’s end.
Bashir urged tannery owners and leather manufacturers to collaborate with government agencies to achieve set goals. He also addressed the role of commercial wings in promoting exports, noting past political protocol duties overshadowed export promotions. The ministry, alongside BIDA, is engaging commercial wings for promoting exports and attracting investments. Plans to hold monthly virtual meetings with commercial wings abroad are in place, focusing on goal attainment and trade facilitation.
Stakeholders and experts highlighted the substantial government support for the RMG sector, including incentives and policy interventions, which discourage exploration of other sectors. The RMG sector’s benefits, like lower production costs and employment, create disincentives for other sectors. Bangladesh’s dependence on the USA and EU further makes its exports vulnerable, necessitating exploration of new markets such as Southeast Asia, the Middle East, Africa, and other regions. Other sectors like leather, jute, agricultural products, handicrafts, pharmaceuticals, and ICT do not receive similar support as the RMG sector.