Export earnings jump 30pc in October
Export earnings climbed 30.53 percent year-on-year to $3.71 billion in October compared to the same month a year ago on the back of higher shipment of garment items. Apparels, which typically contribute more than 80 percent to the national export, fetched $3.14 billion alone in the month, according to data from the Export Promotion Bureau (EPB) released yesterday. Overall, the country’s exports rose 18.65 percent to $13.66 billion in July-October, which is 12.57 percent higher than the periodic target of $12.12 billion. In the first four months of the current fiscal year, garment shipment grew 20.08 percent to $11.33 billion. Garment shipments are increasing as the country is regaining the confidence of international retailers and brands on the back of the remediation and the rebounding of the US economy. For instance, leather and leather goods shipments were down by 19.43 percent to $345 million between July and October. Jute and jute goods exports, another potential sector, also fell by over 16 percent to $289 million and bicycle export declined by over 6 percent to $26.53 million
Govt eyes $60b exports in 3 years
The government has come up with a host of incentives including low-interest loans under the new export policy to facilitate receipts of $60 billion by fiscal 2020-21. Last fiscal year, exports fetched $36.66 billion, up 5.81 percent from fiscal 2016-17, but fell short of the government’s target of $37.5 billion, according to data from the Export Promotion Bureau. Leather will get special focus in the new export policy to reduce dependency on garment, which accounts for more than 80 percent of Bangladesh’s export receipts. Benefits enjoyed by the garments industry will be extended to the leather industry. The number of highest priority sectors has been raised to 15 from existing 12 and the number of special development sectors to 19 from existing 14. This time, special steps were taken to extend easy term loans and other banking facilities to export-oriented industries from the Export Development Fund (EDF) of the Bangladesh Bank. The garment sector will be able to send samples worth a maximum of $20,000 instead of existing $15,000.
Go for free trade deal with EU instead of GSP
Trade economists yesterday suggested the government to sign free trade agreement with the European Union instead of seeking GSP Plus for continuation of trade privilege following graduation to the developing country bracket in 2027. Last fiscal year, about $21 billion out of the country’s total export receipts of $36.66 billion came from the EU, where Bangladeshi goods enjoy duty-free privilege under the GSP scheme as a least-developed country. For continuation of the GSP scheme after graduation, Bangladesh will have to follow some stringent conditions like ratifying 27 UN Conventions and make improvements in four important areas: good governance labour rights, human rights and environment protection. Bangladesh will lose 11 percent or $6 billion of business once it graduates to the developing country bracket in 2027, he said while presenting a study paper on LDC graduation and its impact. As an LDC Bangladesh enjoys trade benefit under different multilateral trading systems, but such trade preferences will go away upon graduation. For instance, Bangladesh will have to pay 12.5 percent duty for exporting to the EU, where 54 percent of the shipments from Bangladesh go. The country’s three-year average exports under the scheme must represent less than 6.5 percent of the value of the EU’s total GSP imports from all the beneficiary countries, he said. Currently, Bangladesh’s share is 9 percent, which is higher than the threshold. Major rebranding of Bangladesh and its ready-made garment (RMG) sector are needed to enhance their images abroad. There is no country that has managed to better grab the advantage of ‘Everything but Arms’ initiative than Bangladesh. There have been steps to set up 100 special economic zones or 12 hi-tech parks. But attention should be given to what is already there. The leading global financial giant HSBC organized the seminar in collaboration with the United Nations Development Programme (UNDP). As the second-largest apparel exporter, Bangladesh should continue to drive the sustainable supply chain practices given the expected impact of climate change. Impact measurement can help identify supply chain gaps in policy, infrastructure or resources and creatively plug them to maximize social benefits and profits for everyone.
Bangladesh should get ready to tackle impacts: analysts
Oil Bangladesh should take preparations to face the impacts of the US-China trade war, which worsened in January this year when the two economic powerhouses imposed new tariffs on products of each other. In a globalized world, all countries are integrated through export, import, foreign investment and remittance. In this situation, if something happens to one or two of the biggest economies, its impact will affect the global economy. The open trade regime has helped China lift 700 million people above the poverty line in the last 40 years. The open trade regime benefits the global economy.
Shipping Corporation gets Tk 300cr tax breaks on vessel import
The National Board of Revenue yesterday handed out value-added tax exemptions of about Tk 300 crore to the state-run Bangladesh Shipping Corporation (BSC) for import of six vessels, which will be used to carry cargoes in international waters. With the six vessels, the total number of ships that have got VAT exemption on import goes up to 10. The NBR introduced the VAT exemption benefit for import of up to 22-year-old vessels in June to give a boost to the domestic shipping sector such that the ships can carry more cargoes and secure a higher share of the $8-9 billion freight charge that Bangladeshi businesses annually spend to export and import goods. Local oceangoing vessels can tap only 2 percent of the freight charge due to a dearth of vessels, according to sector operators.Of the six ships, three are bulk carriers, each with 38,894 deadweight tonnage (DWT) capacity. The remaining three are oil tankers with a capacity of 39,000 DWT each, meaning that the BSC will be able to transport the same volume of crude oil, according to the letter issued to the BSC by the NBR. The six ships will take the state corporation’s fleet to eight from only two at present. Our capacity will increase and we will be able to either earn foreign currency or save on freight cost that is spent to carry export and import cargoes and crude oil. We will be able to contribute to the national economy.
July-Oct export earnings stand at $13.65b
Export earnings from the country’s merchandise shipment during the first four months of current fiscal year (FY19) stood at $13.65 billion marking, an 18.65 per cent growth over the corresponding period of last fiscal. The country fetched $11.50 billion during July-October period of fiscal year 2017-18 (FY18). The export performance was 12.57 per cent higher than the target set for the period, data showed. The single month earnings in October 2018 grew by 30.53 per cent to $3.71 billion from $2.84 billion in 2017. October’s performance also surpassed the target set for the month by 32.68 per cent. Earnings from export of readymade garments (RMG) during July-October of this fiscal grew by 20.08 per cent to $11.33 billion, which was $8.19 billion in the corresponding period of last fiscal. The earnings also surpassed the target by 11.50 per cent. The country earned $5.87 billion from knitwear export during the period, which marked a growth of 17.83 per cent compared to that of $4.98 billion in the corresponding period. Woven garments earnings in the first four months of FY19 grew by 22.61 per cent to $5.45 billion, from $4.45 billion in the same period of last fiscal. Frozen and live fish exports in the first four months of current fiscal witnessed a negative growth of 13.04 per cent to $197.31 million during the same period of current fiscal.
DCCI puts emphasis on signing FTA with Malaysia
Dhaka Chamber of Commerce and Industry (DCCI) on Tuesday laid emphasis on signing free trade agreement (FTA) between Bangladesh and Malaysia to boost bilateral trade and investment. The High Commissioner said Bangladesh has a promising future in terms of trade, commerce and economic development. Regarding infrastructure development, Bangladesh did well in the recent past, she said, adding Few large infrastructure development works are under construction but rapid implementation of these projects are needed. Mentioning that stability in the last decade helped Bangladesh keep its GDP growth ahead, the envoy said the ASEAN market is one of the largest potential markets in the world and Bangladesh can take its advantages by investing in this region. As Bangladesh is a market of 160 million people and most of them are Muslims so halal certification could be a promising sector to be explored.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 61.88||↓0.33||↓0.53%|
|Crude Oil (Brent)||$ 71.98||↓0.15||↓0.21%|
|Gold Spot||$ 1,228.63||↑1.44||↑0.12%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8724|
|GBP 1||BDT 109.8288|
|EUR 1||BDT 95.9053|
|INR 1||BDT 1.1461|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.