Bangladesh seeks export boost beyond incentives

The International Monetary Fund or IMF has also recently recommended economic reforms to reduce incentives

The government is looking for alternative methods to boost export earnings in specific sectors without relying solely on incentives.

The upcoming export policy from the commerce ministry, spanning from 2024 to 2027, will address the possibility of introducing non-incentive-based policy support.

The Cabinet Committee on Economic Affairs at the Secretariat approved the draft of the Export Policy (2024-2027) at a meeting on Wednesday.

The policy is set to receive final approval at the upcoming Cabinet Committee meeting, said Cabinet Secretary (Coordination and Reforms) Md Mahmudul Hossain Khan.

He told reporters that the policy includes recommendations for the participation of women and small entrepreneurs in the export sector.

Adhering to World Trade Organization or WTO regulations, the policy sets a target of achieving $110 billion in exports by the end of the 2024-2027 period, Mahmudul said.

In the budget for the current fiscal year, the government allocated Tk 840 billion for subsidies and Tk 152.25 billion for incentives.

However, the International Monetary Fund or IMF has recently recommended economic reforms to reduce incentives.

When Bangladesh graduates from the list of least developed countries in 2026, it will lose some existing trade benefits.

To prepare for this transition, the government aims to phase out incentives to enhance the competitiveness of the domestic industry.

“We anticipate numerous challenges after graduation from the Least Developed Country to Developing Country status. The export policy addresses priority sectors for branding abroad," Mahmudul said.