Garment exporters reject WB's lowering of growth projection

FE Team | Published: November 28, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The country's garment exporters have disapproved the World Bank projection of lower GDP growth for Bangladesh due to global financial crisis saying earnings from shipment of apparels will actually go up in coming months.
The higher trend of export growth, which posted 44.66 percent over the past three months, will continue, BGMEA president Anwar-ul-Alam Chowdhury Parvez told a hurriedly called press conference Thursday.
Earlier on Wednesday, the WB said the country's GDP (gross domestic product) might come down to 4.8 per cent from the government projected 6.5 per cent as export of readymade garment and remittance inflow might suffer due to global financial crisis.
Mr. Parvez said apparel export grew by 44.66 per cent on an average during July-September period fetching the country US$ 3.356 billion.
He also said the country's knit sector grew by 52.05 per cent and woven 36.67 per cent during the period.
"We have earned $ 1.525 billion by exporting woven garment during July-September this year against $ 1.116 billion in the same period in 2007, We have also earned $ 1.831 billion by exporting knit products against $ 1.294 billion in same period in 2007," Mr Parvez said.
He also claimed that the UD (utilisation declaration) issuance by the BGMEA has been growing steadily since January this year. UD utilisation refers to quantity of fabrics one will import against export order.
"UD issuance grew by 45.45 per cent in July, 0.99 per cent in August, 24.40 per cent in September and 18.76 per cent in October this year," BGMEA president claimed.
BGMEA leaders said such 'baseless' WB projection will create panic among buyers, customers and manufacturers and urged the government and the central bank not to listen its advice.
"We are seeing it as opportunity as we produce low-end product, " BGMEA president added.
He said some buyers deferred orders that were placed for shipment before Christmas saying: "buyers have not cancelled it and they will take it shortly."
BGMEA leader also said buyers are now in negotiation for requirement during autumn season. "We are not seeing any impact of the global crisis in our negotiation."
He hinted that Bangladesh's RMG export will exceed its target set for the fiscal 2008-09 if the government devalues currency and give financial packages.
"The government should depreciate local currency to encourage export and remittances or introduce dual currency system for the export sector," Mr Parvez said.
He said banks should continue its support in providing loans to the RMG units urging them not go by the contraction policy in any way.
Echoing the BGMEA leader President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Md Fazlul Hoque said: "Our export will not drop due to the financial crisis."
He said: "There might not be a sharp export growth, but it will not certainly fall below target."