A deep sea port at Chittagong to boost exports
Abul Quasem Haider | Saturday, 28 June 2008
THE caretaker administration needs to revive its initiative to build a deep sea port off Chittagong to meet the growing export-import trade needs of Bangladesh.
A review of growing trade of Bangladesh would make it obvious why Bangladesh felt the need for a deep sea port for long.
It was a mistake for the caretaker administration to postpone its initiative stating that a deep sea port would not be needed after the recent improvement in the functioning of the Chittagong port.
The caretaker government cited two other reasons, the cost of Tk 42 billion needed to build the deep sea facility and the time to complete it by 2050, for the postponement of the initiative.
The government needs to understand that the returns from a deep sea port would be much higher as the experience of other countries show.
In the outgoing fiscal year, our export earning increased by 15.69 per cent from over $12.17 billion (1,217 crore) of the previous fiscal. The growth rate was 9.52 per cent i.e. export earning reached $1210 million in June alone of the previous fiscal.
The exporters of Bangladesh considered the export earning of the outgoing fiscal year as a success story. The lifting of quota system after 2004 in export markets of America and Europe facilitated easier excess for Bangladesh to the overseas markets. For the main items of export, knit and woven garments, Bangladesh has been able to keep up the trend of export growth. It appears from a statistical report of Export Promotion Bureau (EPB) that export earning from knit garments increased by 19.30 per cent compared with the previous year. On the other hand, export earning from woven garments increased by 14.05 per cent. Total earning from woven and knit stood at $4657.0 million and $4553.6 million respectively.
Besides ready made garments, export earning form other commodities also increased considerably. Export receipts also exceeded targets, and also those of the previous fiscal, for frozen foods, leather, home textiles, agricultural products, engineering products, handicraft and agricultural processed items. On the other hand, although target was not achieved, export earning increased compared to that of the previous year for knitwears, leather, chemical products, computer service and ceramicwear.
A good number of buyers in America and Europe imposed conditions for fulfillment of compliances and Bangladesh, having been under pressure, could still earn $515.3 million exporting frozen foods and the rate of growth was 12.24 per cent. As different value added commodities were tagged with frozen foods in the outgoing fiscal, this resulted in overall increase in the export volume. Export earning form home textiles increased by 55.5 per cent, leather, 3.42 per cent, pharmaceuticals, 2.51 per cent and handicrafts 16.02 per cent.
But the export earning fell for a few items compared to the previous fiscal. For tea it fell by 41.63 per cent, agricultural products by 7.40 per cent, raw jute by 0.76 per cent and jute goods by 11.15 per cent. EPB statistics show that export earning increased most for manufactured goods which stood at $11.34 billion. Export earning from primary items stood at $832.2 million.
Steps are needed to further increase export earning. The government needs has to encourage export diversification. It can be done by framing rules to provide financial incentive and by motivating entrepreneurs though meeting and seminars. Without proper motivation and patronage from the government, export will not increase. To encourage the export the potential exporters should be declared VIPs and CIPs, every year. Without appropriate steps at the national level to encourage and recognise the exporters, it will be very difficult to keep up the trend of export. It is not related with any financial activity of the government. Only due to defects in its rules, the government could not, for long make new CIPs. The ministries of commerce and finance and planning should take urgent steps to reintroduce the system at the earliest.
The government should has to take necessary measures to ensure continued political stability. Development of the country is dependent on social and political stability. The current trend of development should continue. Politics and economics should not be amalgamated. These should be adjudged from their own spheres. A transparent economy needs transparency in politics. Again, transparent economy needs transparent and efficient entrepreneurs. Similarly transparent and honest politicians are needed for politics.
To increase export earning, our missions abroad need to be strengthened. The commercial attaches in the missions abroad have to publicise our commodities in the host countries to increase the export volume. They have to be vigilant to hold trade fairs in those countries.
Effective steps have to be taken to establish cordial business relationship between the Bangladeshi business community and the foreign importers. The officers of our foreign missions have to act as special messengers to maintain the needed liaison with foreign business communities.
The trend of infrastructure improvement should be maintained.
A review of growing trade of Bangladesh would make it obvious why Bangladesh felt the need for a deep sea port for long.
It was a mistake for the caretaker administration to postpone its initiative stating that a deep sea port would not be needed after the recent improvement in the functioning of the Chittagong port.
The caretaker government cited two other reasons, the cost of Tk 42 billion needed to build the deep sea facility and the time to complete it by 2050, for the postponement of the initiative.
The government needs to understand that the returns from a deep sea port would be much higher as the experience of other countries show.
In the outgoing fiscal year, our export earning increased by 15.69 per cent from over $12.17 billion (1,217 crore) of the previous fiscal. The growth rate was 9.52 per cent i.e. export earning reached $1210 million in June alone of the previous fiscal.
The exporters of Bangladesh considered the export earning of the outgoing fiscal year as a success story. The lifting of quota system after 2004 in export markets of America and Europe facilitated easier excess for Bangladesh to the overseas markets. For the main items of export, knit and woven garments, Bangladesh has been able to keep up the trend of export growth. It appears from a statistical report of Export Promotion Bureau (EPB) that export earning from knit garments increased by 19.30 per cent compared with the previous year. On the other hand, export earning from woven garments increased by 14.05 per cent. Total earning from woven and knit stood at $4657.0 million and $4553.6 million respectively.
Besides ready made garments, export earning form other commodities also increased considerably. Export receipts also exceeded targets, and also those of the previous fiscal, for frozen foods, leather, home textiles, agricultural products, engineering products, handicraft and agricultural processed items. On the other hand, although target was not achieved, export earning increased compared to that of the previous year for knitwears, leather, chemical products, computer service and ceramicwear.
A good number of buyers in America and Europe imposed conditions for fulfillment of compliances and Bangladesh, having been under pressure, could still earn $515.3 million exporting frozen foods and the rate of growth was 12.24 per cent. As different value added commodities were tagged with frozen foods in the outgoing fiscal, this resulted in overall increase in the export volume. Export earning form home textiles increased by 55.5 per cent, leather, 3.42 per cent, pharmaceuticals, 2.51 per cent and handicrafts 16.02 per cent.
But the export earning fell for a few items compared to the previous fiscal. For tea it fell by 41.63 per cent, agricultural products by 7.40 per cent, raw jute by 0.76 per cent and jute goods by 11.15 per cent. EPB statistics show that export earning increased most for manufactured goods which stood at $11.34 billion. Export earning from primary items stood at $832.2 million.
Steps are needed to further increase export earning. The government needs has to encourage export diversification. It can be done by framing rules to provide financial incentive and by motivating entrepreneurs though meeting and seminars. Without proper motivation and patronage from the government, export will not increase. To encourage the export the potential exporters should be declared VIPs and CIPs, every year. Without appropriate steps at the national level to encourage and recognise the exporters, it will be very difficult to keep up the trend of export. It is not related with any financial activity of the government. Only due to defects in its rules, the government could not, for long make new CIPs. The ministries of commerce and finance and planning should take urgent steps to reintroduce the system at the earliest.
The government should has to take necessary measures to ensure continued political stability. Development of the country is dependent on social and political stability. The current trend of development should continue. Politics and economics should not be amalgamated. These should be adjudged from their own spheres. A transparent economy needs transparency in politics. Again, transparent economy needs transparent and efficient entrepreneurs. Similarly transparent and honest politicians are needed for politics.
To increase export earning, our missions abroad need to be strengthened. The commercial attaches in the missions abroad have to publicise our commodities in the host countries to increase the export volume. They have to be vigilant to hold trade fairs in those countries.
Effective steps have to be taken to establish cordial business relationship between the Bangladeshi business community and the foreign importers. The officers of our foreign missions have to act as special messengers to maintain the needed liaison with foreign business communities.
The trend of infrastructure improvement should be maintained.