Bangladesh exports fetched $55.28 billion in the fiscal year 2023-24, falling $6.61 billion short of target and 0.49 per cent less than $55.55 billion - the export earnings of the previous fiscal year.
The target for fiscal year 2023-24 was set at $62 billion, according to official statistics.
The shortfall has been attributed to global political instability, high inflation and economic crises in key export destinations, besides increased production costs.
Moreover, the recent reductions in export incentives have sparked concerns among exporters. The government has decided to phase out various export subsidies aligned with the goals of countrys transition to middle income nation by 2026.
These reductions including cuts to incentives in the readymade garments sectors incentives from 1 per cent to 0.5 per cent and the elimination of incentives for certain high-export items, are feared to have negatively impacted the sectors competitiveness and investment.
Exporters argue that these incentive cuts come at a challenging time, exacerbating existing issues such as higher interest rates, higher energy costs, and the need to remain competitive in global market.
