Apparel manufacturers say the target for textiles is challenging as the pandemic is dragging down both product price and demand
The government is going to set a $48 billion export target for the current 2020-21 fiscal year, where product exports would contribute $41 billion and the services sector $7 billion.
Growth of product exports is likely to be projected at 21.75 percent, said commerce ministry sources. The ministry will formally announce this target at a press briefing Thursday.
The products export target was $45.5 billion and earnings fell by 16.93 percent to $33.67 billion in the just-concluded 2019-20 fiscal year. The country earned $40.53 billion from products in the 2018-19 fiscal year.
The services sector export target was $8.5 billion last year.
For the apparel sector, the largest contributor to national exports, the target will be set at $33.78 billion with 20.88 percent growth.
"Attaining this export target will be challenging during the novel coronavirus pandemic if the situation does not improve," said Kutubuddin Ahmed, chairman of Envoy Textiles Ltd, the world's greenest denim manufacturer.
"Apparel prices are dipping globally while consumption will also fall," he added.
The Covid-19 pandemic has forced a shift in demand for high-end and low-end apparel items, and this will be reflected in export earnings, added Kutubuddin Ahmed.