Business Supplement Issue-20

4
Sunday, July 9, 2017
DT
Week in Review
RMG export earnings growth lowest in 15 years
Bangladesh’s export earnings from the
apparel industry, the lifeline of foreign
currency earners, have seen only a
0.20% rise to $28.15 billion, which is the
lowest on record in the last one and a half
decades, in the just-concluded fiscal year.
However, Bangladesh’s overall
export earnings stood at $34.83 billion
in FY’17, which is 1.68% higher than the
$34.25 billion a year ago.
Since the inception of RMG export,
Bangladesh has registered negative
growth only once in 2001-02 fiscal
year, by 5.68%, to $4.58 billion.
Trade analysts and businessmen
have blamed average price fall of
products, ongoing structural reforms
in the apparel industry, economic slowdown
and sluggish demand in export
destinations, devaluation of Euro and
appreciation of BDT against US dollar,
for the lackluster export growth.
According to provisional data of
Export Promotion Bureau (EPB),
Bangladesh’s export earnings from
the RMG sector stood at $28.14 billion,
posting 0.20% growth in the past fiscal
year. The figure is 7.34% less than the
target of $30.38 million.
In the last fiscal year, Bangladesh
earned $28.09 billion from the clothing
industry.
Of the total amount, Knitwear
products earned $13.76 billion, which is
3% higher than the $13.35 billion in the
same period a year ago. Woven products
earned $14.39 billion, down by 2.35%,
compared to $14.73 billion a year ago.
As per the provisional data, in FY’17,
Bangladesh’s overall export earnings
stood at $34.83 billion with 1.68%
growth. The figure is over $2 billion less
than that of the government target of
$37 billion set for the previous fiscal. In
June, export earnings saw a 15.27% fall
to $3 billion, which was $3.59 billion in
the same period last year.
“The meager growth is a reality in
the Bangladesh RMG sector. It comes
as no surprise as the apparel industry
is going through many challenges,
including remediation, devaluation
of Euro and labour unrest,” Exporters
Association president Abdus Salam
Murshedy told the Dhaka Tribune.
RMG manufacturers are working
hard to face the challenges by
introducing production engineering,
technological upgrade etc, but it is not
enough, said Salam.
Dhaka Tribune
In continuation with the existing policy
support, the government should offer
special incentives, including 5% cash
incentives on the value of Freight on
Board (FoB) for at least next two years,
the former BGMEA president said.
On the other hand, to bring about
sound export growth, the government
has to come up with long-term policy
support, including tax holiday for 10
years, for new investors to attract
investment. •
World Bank, IMF
unhappy with VAT
law suspension
The World Bank (WB) and the International
Monetary Fund (IMF) has
sent a letter to the Finance Ministry
saying they were disappointed
about the VAT Law 2012 not being
implemented this fiscal year.
In the letter, the World Bank
asked the government to implement
the law immediately saying
without the new law, the government’s
revenue will slow down
along with negatively impact GDP
growth and create difficulties in
getting foreign financial assistance.
The WB and IMF said the government
has stalled the implantation
of the new VAT law the very
last minute even though the law
was complete. They collectively
said that it was illogical to fear an
increase in the inflation rate.
They warned that keeping the old
VAT law would be bad for Bangladesh’s
relationship with the country’s
development partners, adding:
“The government has failed execute
the 2012 VAT law for five years.”
The two development partner
suggested that without the
implementation of the new VAT
law, Bangladesh’s aid and credit
standard might be impacted. The
development partners said the government
will find it hard to finance
and implement the new budget in
the beginning of the fiscal year. •
Corporate News
Prime Minister’s Office (PMO) and Bangladesh Export Processing Zones Authority (BEPZA) have
recently signed an annual performance agreement for the fiscal year 2017-18, said a press release.
Senior secretary at Prime Minister’s Office, Suraiya Begum and executive chairperson of BEPZA, Major
General Mohd Habibur Rahman Khan have signed the agreement
University Grants Commission (UGC) of Bangladesh and Council of Higher Education (CoHE) of Turkey
have recently signed an agreement on providing seven Bangladeshi students with PhD scholarship
facilities in textile education at Turkish universities every year, said a press release. Chairperson of UGC,
Professor Abdul Mannan and Professor Dr MA Yekta Sarac, president at Council of Higher Education of
Turkey have signed the agreement
Social Islami Bank Limited has recently held its half-yearly business conference for the year 2017, said a
press release. The bank’s chairperson, Major Dr Md Rezaul Haque (retired) inaugurated the conference
as chief guest
PBL Exchange (UK) Ltd London, a wholly owned company of Prime Bank has recently held a gettogether
programme with its agents and clients at its Birmingham and Oldham branches for boosting
inward remittance, said a press release. The bank’s DMD, Habibur Rahman was present at the
programme along others