Augmenting export earnings

A 10.53 per cent rise in the country's export earnings to $32.94 billion in the first eight months of the current fiscal year on the back of an augmented remittance received during the same period provides a sense of relief at the time the economy is wobbling. Even the export earnings for this February recorded a 2.27 per cent year-on-year increase to US$3.97 billion compared with US$3.86 billion in the same month the previous year. Not surprisingly, the number one export commodity of the country, readymade garment (RMG) led the way by recording a 10.64 per cent growth. Taking into account the single month's export growth for February, the knitwear sub-sector registered a growth of 1.66 per cent to $3.24 billion compared to the same month the previous year. However, the woven garment articles experienced a slightly negative growth at 0.44 per cent.

The overall export growth during the first eight months of the fiscal year 2024-25, according to the sector's businesspeople, is a proof of the country's 'resilience and competitiveness on the global export market'. It is so because, the sector has defied the labour unrest, scarcity of gas and a lack of cooperation from banks. So far as labour unrest is concerned, it is the dark horses in the sector which have actually perpetuated the problem. With the highest number of leadership in energy and environmental design (LEED)-certified RMG green factories at 235 in the world by January 25, 2025, the country should have been in the forefront of receiving orders and other supports from the international buying platforms like the Alliance and Accord. Both of them played a pivotal role in transforming the safety standard of garment factories here and also transitioning into the green status. But unfortunately, the same impetus is lacking in matters of placing orders, offering higher prices commensurate with the improved status in workplace safety and helping market commodities produced in these factories.

Garment units must take the blame for not streamlining recruitment policies and procedures and solving the endemic labour unrest. Had these fundamental issues been addressed on a priority basis, even the last year's political unrest would not have left an adverse impact so telling. Vietnam has made tremendous gains from the Western world's China-bashing policy and even India has grabbed a good slice of the global garment business. So, before apportioning blame to others, the businesspeople in the sector should pay a greater attention to bring its own house in order. Together with upscaling products, the systemic improvement can help fetch far higher amounts of forex.

Finally, the reliance on RMG for foreign exchange earnings is overwhelming. Export diversity focusing on leather, pharmaceuticals, frozen fish, processed foods, plastic products---all of which have high potential---is the name of the game for raising income from export in a competitive world. Apart from the unskilled, semi-skilled and skilled workers the country is used to sending abroad, it is time to push for placement of professionals in the high-end job market. In this context, the graduates and masters in technology-based subjects such as computer science, IT, physics, applied physics should be targeted for their employment abroad. Countries like Germany and Japan with aging populations need such professionals on an emergency basis. Bangladesh must seize the opportunity to boost its hard currency earning.