Bangladesh's export earnings have been going down continuously. The country earned 307 crore 32 lakh dollars from exports in October this year which is 17.19% less than the export earnings made in October last year. Export earnings have gone down by 7% approximately from July to October this fiscal year which is 11% less than the stipulated export target.
Economists and business leaders have termed this situation as an alarming one. Rubana Huq, President of Bangladesh Garments Manufacturers & Exporters Association (BGMEA) has informed that the export of readymade garments (RMG) has decreased by 22% compared to last year. Rubana Huq has urged the government to sit with the exporters immediately to find ways to overcome these circumstances.
Ahsan H Mansur, Executive Director of Policy Research Institute has suggested the government to devaluate taka against dollars to confront the ongoing plight of export earnings.
Export Promotion Bureau (EPB) unfolded on Tuesday that Bangladesh earned 307 crore 32 lakh dollars from export in October this year. Export earnings reached 371 crore 11 lakh dollars in October last year.Export earnings amounted to 12.72 billion dollars from July to October of 2019-2020 fiscal year. 85% of these earnings was contributed by RMG sector which is 1 thousand 57 crore 74 lakh dollars.
553 crore 83 lakh dollars were earned through the export of knitwear which is less by 5.73% compared to last year. 503 crore 90 lakh dollars were obtained through the export of woven products which is lower by 7.67% compared to last year.
Rubana Huq said that the price of readymade garments dropped by 7.04% in the United States of America from 2014 to 2018. Most of the orders of RMG buyers are going to India and Vietnam, Rubana Huq added. The government's policy support is required to tackle this situation, she remarked.
Rubana Huq further said that 59 RMG factories have closed down in Bangladesh in the meantime. 29,700 RMG employees have become jobless for this reason.
Ahsan H Mansur commented that Bangladesh's export earnings have decreased for two reasons. First, economic recession is going on in Europe. Second, production cost of RMG goods has increased while buyers have not raised prices.It may be added that the highest ever trade deficit has hit Bangladesh's economy which is 178.40 billion taka.
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