Bangladesh to boost export growth decides on redefining export-oriented products

Bangladesh government to boost exports has decided to redefine export-oriented traditional and non-traditional products as the contribution of the traditional products to the export basket has plunge to 2.74% in the last fiscal year, while the contribution of non-traditional products raise to 97.26%.

Export Promotion Bureau (EPB) sources said that the recently the Prime Minister Office (PMO) in a letter directed the Export Promotion Bureau (EPB) to redefine export-oriented traditional and non-traditional products to accelerate export growth.

A meeting was held on Sunday by EPB with the export-oriented stakeholders including Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Textile Mills Association (BTMA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and other sectors to redefine traditional and non-traditional export-oriented products.

At the meeting, the EPB recommended inclusion of RMG and frozen foods in the traditional category, while it also suggested excluding tea from the traditional list.

Dr Mirza Azizul Islam, former finance adviser to an election-time caretaker government said that to specify traditional or non-traditional export-oriented products, they need to consider the growth of that specific items.

The potentiality of the products has to be identified first and the goods need to be selected on the basis of export growth potentiality. RMG has already come to the traditional category with its present export volume, he added.

According to EPB, since the Independence of Bangladesh, jute, jute goods (Hessian, Sacking and CBC), leather (crushed and finished) and tea (bulk) are being considered as traditional products.

In 1980s, RMG sector started its journey and gradually emerged as a significant industrial sector of the country, now accounting for over 80% export earnings.

Currently, the contribution of textile sector to the country’s export has marked steep rise. In last financial year, Bangladesh earned $25.39bn exporting RMG products including oven, knitwear, home textile, specialized textile, fabrics and yarn, which was 84.12% of the total export.

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