Economists and exporters have expressed their doubt about achieving 15-per cent export growth target to $30.9 billion estimated in the proposed national budget for the financial year 2013-14 that was placed before the parliament on Thursday.
Although the economy of Bangladesh is able to make a significant growth, the 15-per cent export growth will be tough due to ongoing political unrest, inefficient infrastructure including shortage of paower and gas, they said
while talking to New Age on Saturday.
Finance minister AMA Muhith in his budget speech said, ‘I expect, as per the outlook, positive changes in the global economy will accelerate our foreign trade. We expect that export receipts will rise by 15.0 per cent and import payments by over minimum 10 per cent next year.’
‘The country’s export earning largely depends on the performance of readymade garment sector and I think that it will be challenging to achieve 15 per cent export growth’, Centre for Policy Dialogue executive director Mustafizur Rahman said.
The economy of Bangladesh is able to grow but a number of domestic problems including political uncertainty are the challenges, he said.
‘The country’s export growth mainly depends on RMG sector but nowadays the numbers of competitors are increasing. Bangladesh has to compete with Vietnam, Cambodia and Turkey as they have business ties with the United States and the European Union,’ Mustafiz said.
‘To maintain the export growth we have to pay attention to both the products and market diversifications and also to
address the problems of power and gas.
‘Economic meltdown in the US and the EU is one of the big hindrances in the way of achieving proposed export growth. Though the markets are recovering recession shocks, the trend is very slow and the export performance of our knit products in those markets is not good,’ Mustafiz said.
Muhith in his budget speech cut down the export target of the current fiscal year to $26.90 billion from $28 billion because of sluggish exports in the first 10 months of the year.
The country’s export earning stood at $22.50 billion in July-April of the current financial year growing by 10.14 per cent compared with the
same period of the last financial year.
Bangladesh Garment Manufacturers and Exporters Association’s former president Abdus Salam Murshedy said the proposed export target was not high ambitious and it was possible to achieve but prevailing internal problems are the main obstructions.
Frequent political turmoil is taking a huge toll on the export-oriented sectors as well as the Tazreen Fashions fire and Rana Plaza collapse which are tarnishing the image of the country, he said.
Murshedy, also the president of Exporters Association of Bangladesh, said, ‘We know how to grow but the government have to ensure business-friendly environment and have to take policy considering
with the policy of competitor countries’.
‘As the present government is standing on its fifth and final year, the political confrontation will continue and it is unlikely to achieve the proposed export target,’ he said.
Echoing Murshedy, Bangladesh Knitwear Manufacturers and Exporters Association vice-president Mohammed Hatem said despite global economic depression Bangladesh could be able to achieve the target but internal political unrest and factory incidents stood as the main obstacles.
Crisis of power and gas, lack of planned industrial zone and high interest of bank loan are hampering the business. If the
government does not address the problems properly, the export will not grow up, he said.
Bangladesh Institute of Development Studies senior research fellow Nazneen Ahmed said that the proposed export target was not so higher and achievable.
‘The international market is rebounding after recession and I am hopeful that the proposed 15-per cent export growth target would be achieved despite the ongoing political instability in the country,’ she said.
-With New Age input
