Export earnings drop by 0.49% in FY 2023-24

In the just concluded financial year 2023-24, Bangladesh earned $55.29 billion by exporting goods, which is 0.49 per cent less than the previous year. In the financial year 2022-23, the export income was $55.56 billion, marking a 6.67 percent growth compared to FY 2021-22.

This information was disclosed by the Ministry of Commerce on Thursday. A senior official, speaking on condition of anonymity, mentioned that the Export Promotion Bureau would release the detailed data on export earnings soon but declined to provide further details.

The government's target of $60 billion for the financial year 2023-24 has not been achieved, falling short by $6.61 billion. Factors such as global political unrest, high inflation, economic crises in export destinations, and increased production costs are expected to result in negative growth in export earnings for the current fiscal year.

Meanwhile, on June 30, Bangladesh Bank announced export incentives and cash assistance for 43 product sectors for the next fiscal year, from July 1 to June 30, 2024-25. However, the notification indicated that exporters would receive less cash assistance than before. This reduction follows a previous cut in February, marking the second time the government has reduced export cash assistance.

Entrepreneurs report that the export sector is facing a multifaceted crisis due to rising interest rates, increased gas and electricity prices, and higher wages. They warn that the reduction in incentives could negatively impact export-oriented industries, potentially leading to decreased investment and job losses.

In contrast, the Cabinet approved the draft of the 'Export Policy, 2024-27' on July 1. The new policy sets an ambitious export target of $110 billion by the end of FY 2026-27.

NMA