The Export Promotion Bureau (EPB) will propose setting the country’s merchandise export target at US$ 38.0 billion for the upcoming fiscal year (FY) 2017-18, officials said. The target is 7.82 per cent or $ 1.0 billion higher than that of the current FY’s target of $ 37.0 billion.The EPB would also project an additional $3.50 billion in earnings from services export, raising the next FY’s total export target to $41.50 billion. The proposals were placed at a meeting of the EPB last week when leaders of major export-earning sectors, including ready-made garment and frozen fish, differed with the projection. Apparel sector leaders opined that the target would be achieved if cash support for new market exploration is continued, political stability ensured and local currency justifiably devalued. The shrimp exporters stressed the need for ensuring smooth supply of raw material for increased production. The EPB expected the export receipts to reach $ 38.60 billion — $35.24 billion from goods and $3.36 billion from service sectors — by the end of the current FY, reflecting a 3.62 per cent growth over the previous fiscal. “We have initially proposed the export earnings target for the FY18 through consultation with all the stakeholders,” acting vice chairman of EPB Avijit Chowdhury told the FE. The proposal would soon be sent to the Ministry of Commerce (MoC) for approval. In the current fiscal year, all major 10 export items have been projected to grow. Earnings from knitwear export would increase by 8.52 per cent, woven garments 5.77 per cent, home textile 9.77 per cent, leather and leather products 9.02 per cent, medicines 8.32 per cent, jute and jute goods 9.39 per cent, engineering products 25.65 per cent and frozen and live fish 0.14 per cent. “The proposed target can be achieved if the exchange rate of local currency depreciates against US dollar, cash incentive for exploration of new markets continues and political situation remains stable,” said Mahmud Hasan Khan, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Next year is also critical for the sector as the western retailers’ ongoing safety initiatives will come to an end by then, he said, adding that the initiatives saw huge investment in safety with less focus on investment for enhancing productivity, he added. BGMEA president Md Siddiqur Rahman at a recent press conference urged the government to fully withdraw source tax, applicable to sales, not to profit, to help the sector face the ongoing challenges. He said the industry was passing through a tough time after the Rana Plaza collapse and around 1,200 factories especially small and medium-sized units were closed due to various reasons. Frozen food industry insiders said $ 525 million in export earnings might not be possible unless necessary initiative is taken to increase production of shrimp and allow introducing the low-rated and small-sized vennamei. “The target for the next fiscal might not be achieved without the initiatives,” an exporter said. The EPB proposed export targets of $ 15.06 billion and $ 15.50 billion respectively from knit and woven products in the next FY. It also proposed $ 1.11 billion export target with a growth projection of 9.39 per cent for jute and jute goods sector. The EPB expects the country to end the current fiscal year with $ 38.60 billion earnings — $35.24 billion from goods and $3.36 billion from service sector. Export data for service sector, however, is not available throughout the year, even in the previous years. Bangladesh earned $34.25 billion in FY 2015-16, $31.20 billion in FY 2014-15, $ 30.18 billion in FY 2013-14 and $ 27.02 billion in FY 2012-13 through exports.
