Political turmoil in early 2015 hits exports hard

The three-month spell of political violence and agitation at the start of the year has taken its toll on Bangladesh exports.

Exports earnings in April have fallen 7.52 percent in comparison to March and 0.54 percent in comparison to the same time last year.

But, since situations were better in the first half of the fiscal, earnings for July'14-April'15 did go up 2.63 percent on a point to point analysis with last year.

BGMEA President Atiqul Islam told bdnews24.com that the violence has impacted adversely on Bangladesh’s image, which is why exports are falling.

“Even after severe disasters like Rana Plaza and Tazreen Fashions factory, we managed to turn around. 2014 went quite well. But violence erupted early in 2015.

“We stumbled at the beginning [of the year]. We were in trouble when it came to fulfilling compliance requirements of Accord and Alliance. We cleared that but now politics is our main problem.”

He said that this fiscal’s RMG export target was set at $27 billion, which, he felt, might not be achievable.

“We estimate that it would go down by a billion to $26 billion. But it would still be more than last fiscal.”

RMG earning stood at $24.64 billion in 2013-14 fiscal.

Bangladesh Bank’s Forex Reserve & Treasury Management Department’s General Manager Kazi Sayedur Rahman told bdnews24.com that the fall in the Euro has also taken its toll on export earnings.

Export earnings in the ten months (Jul-Apr) of the ongoing 2014-15 fiscal stood at $25.3 billion, according to Export Promotion Bureau (EPB).

The apparel sector accounts for 82 percent of it.

In April, the exports amounted to $2.4 billion, which was $2.59 billion in March.

Bangladesh’s export in the last 2013-14 fiscal amounted to $30.19 billion, while the target for this fiscal is $33.20 billion.

“We have plans to take annual apparel exports to $50 billion by 2021 but that  can be achieved only if political stability prevails in the country,” said the BGMEA chief.