Dhaka, Bangladesh
Tk 941cr project eyes to boost export thru’ capacity building

Tk 941cr project eyes to boost export thru’ capacity building

The government has initiated a move to boost competitiveness of the country’s major exportable items and enhance export earnings addressing various problems in the export market of three major sectors—leather, leather goods and footwear, light engineering and plastics, reports UNB. The Executive Committee of the National Economic Council (Ecnec) has recently approved a project to this end titled ‘Export Competitiveness for Jobs’ to be implemented by June 2023 at an estimated cost of Tk 941 crore. Out of the total project cost, Tk 151 crore will come from the national exchequer while the rest of Tk 790 crore as project assistance from the World Bank. The project will be implemented at Savar upazila in Dhaka, Sirajdikhan upazila in Munshiganj, Gazipur Sadar upazila and Mirsarai upazila of Chittagong, said an official at the Planning Commission. The main objectives of the project are to remove the problems in getting access to the export market and boost export competitiveness of three major sectors like leather and leather goods and footwear sector, light engineering (including electronics and machinery) sector, and plastics sector. The official said,” The goal in the 7th Five Year Plan is to reduce poverty through export-led growth. To attain this goal, export diversification has been adopted as a strategy while emphasis has been given on product and market diversification for ensuring export diversification in the export policy.” According to Export Promotion Bureau (EPB) data, out of the overall export items in fiscal year (2015-16), only six items accounted for 93.58 percent of the total export income of which the RMG sector represents the bulk of 82 percent of the overall export earnings. Besides, around 54.58 percent of the country’s exportable items went to the EU market followed by 22.71 percent in the US market. “Our export market is confined to limited products and limited market. Any kind of untoward incident in the international market will affect the country’s export market severely. That’s why this project has been approved to boost export competitiveness,” said the Planning Commission official. While talking about the project, Planning Minister AHM Mustafa Kamal said there is a need to diversify exportable products and markets to a large extent to boost the country’s export earnings significantly. “This project will aim to boost export earnings through capacity building.” Once the project is implemented, the minister said, the export of new sector-wise products will get a boost. It will also help resolve all the problems in getting greater access to the international market, he added. Under the project, a Commerce Ministry official said, Tk 335.60 crore has been allocated against public investment facility for infrastructure constraints under which recycling facilities will be installed for these three sectors. He said Tk 158 crore will be spent on market access support programme under which sector-wise technical training will be carried out alongside formulation of ESQ reference guide book, workshop, capacity building of industries and BPCs, providing ERF for ESQ compliance assessment and filling up ESQ gap, boosting awareness about export market, conducting activities on market intelligence and market branding. The official said Tk 400.60 crore will be spent on productivity enhancement programme through which four technology centers will be built at Sirajdikhan in Munshiganj, Savar and two centers in Gazipur for boosting productivity and technology development of the three sectors having facility of tool, dice, testing, certification in those centers. The export target for fiscal 2017-18 has been set at $37.5 billion — 8.23 percent higher than the last fiscal year’s receipts. Bangladesh exported goods worth $34.65 billion last fiscal year, up 1.61 percent year-on-year, according to data from the EPB. The garment sector will be gunning for a $30.16 billion export target, 7.19 percent higher than fiscal 2016-17’s receipts.

Share |