Interim govt to revise ‘unrealistic’ export targets
Achieving this target would require Bangladesh's exports to more than double within the next three years, a goal that many policymakers consider unattainable
The interim government is set to revise the "Export Policy 2024-27," approved by Sheikh Hasina's administration, due to its unrealistic targets based on inaccurate export data. The aim is to establish more achievable goals.
During a meeting of the advisory council today, chaired by Chief Advisor Muhammad Yunus, the export policy will be reviewed. This could lead to a reduction in export targets and modifications to various incentives previously announced for exporters.
On 1 July, the draft of the "Export Policy 2024-27" was approved in a cabinet meeting led by former prime minister Sheikh Hasina. The Ministry of Commerce subsequently published the policy on its website, which set an ambitious export income target of $110 billion by 2027.
Keep updated, follow The Business Standard's Google news channel
Achieving this target would require Bangladesh's exports to more than double within the next three years, a goal that many policymakers consider unattainable.
The approved export policy also includes several incentives aimed at maintaining competitiveness following the country's graduation from LDC status. These incentives encompass a 5%-10% rebate on electricity bills, the waiver of all duties while retaining a 1% duty on capital machinery imports, and the provision of low-interest loans through the establishment of a special fund.
Officials from the Ministry of Commerce have indicated that these incentives may also be subject to change during the advisory council meeting.
Md Selim Uddin, the secretary of the Ministry of Commerce, told TBS that some wording needed clarification when the export policy was approved in the cabinet in July. "We have completed those clarifications and sent them for presentation at the advisory council meeting," he said.
When asked if any changes would be made to the export targets, he refrained from commenting.
Several officials from the commerce ministry told TBS that actual exports are approximately $11 billion lower than the figures reported by the Export Development Bureau. In the last fiscal year, actual exports totalled $51 billion, leading many to question the feasibility of reaching the $110 billion target by 2027.
For the current fiscal year 2024-25, the export target for goods and services is set at $57.50 billion. Commerce Adviser Salehuddin Ahmed has predicted a growth rate of 12% to establish this target. If the same growth rate continues over the next two fiscal years, export earnings could approach nearly $70 billion by 2027.
Officials from the commerce ministry said that the advisory council aims to conduct a thorough review of the export policy.
"We have sent the exact policy for presentation at the advisory council meeting. The council will analyse it and decide on revisions to the export targets and other aspects," an official said.
Previously, the Awami League government developed the export policy for 2021-24, aiming for $80 billion in export earnings by 2021. However, by the end of the 2023-24 fiscal year, Bangladesh's export total reached only $51 billion.
The agenda for the advisory council meeting also includes the draft approval of the "Water Supply and Sewerage Authority Amendment Ordinance 2024," along with the draft agreement for the repatriation of Bangladeshi nationals sentenced in Qatar and the Maldives.
