The New Nation - Internet Edition

THE growth in export earnings reportedly declined to 4.4 per cent during the July-December period of the current 2007-2008 fiscal year from a robust 26 per cent rise a year ago. Poor performance by readymade garment sector, which accounts for three-fourths of the total export earnings, is blamed for the fall in the growth rate. Export earnings during the first six months of the current fiscal year amounted to $ 6,496 million, up from $ 6,221 million in the first half of the last fiscal and trailed the target $7,083 million by 8.3 per cent. In fact, the share of readymade garment in total earnings fell to 73 per cent during the period from 76 per cent of the same period last year.

During July-December 2006, the apparel sector earned $ 4,730 million, up by 28 per cent from the incomes of the year before. Earnings from woven garment segment grew 24.11 per cent to $ 2,368 million, while that from knitwear exports surged by 32 per cent to $ 2,363 million - well exceeding their respective targets. Mainly the bad performance of the readymade garment sector, according to a government official, pulled down the export growth. But the Bangladesh Garment Manufacturers and Exporters Association attributed the slow growth to 'political uncertainty' throughout 2007 and 'intensified global competition'.

However, the BGMEA expects that the business would start recovering soon and see a turnaround in the second half of the current fiscal year. Earnings from the frozen foods, the second biggest export earner, reportedly declined by 6 per cent to $ 280 million. In the present highly competitive world, particularly in these days of volatile global economy with recession in the United States and rising fuel and food prices, stronger efforts must be made by the government and the private sector for accelerating the pace of export earnings.