Editorial
Aiming high for exports
Challenge is to transform the downtrend into an upturn
The government's export earning target for fiscal 2007-08 at US$ 14.5 billion envisages a 19.07 percent increase over last fiscal year's earning of US$ 12.17 billion. What is growth about unless every year we notch up higher earnings than the preceding year's level? True, but the point to note about this year's higher export target is the backdrop against which it is set: perceptible downturn in export earning was observed during the last three months of fiscal 2006-07. As a matter of fact, the new export year opens on a rather critical note with earnings in July plummeting by 21.08 percent. The downtrend in RMG sector, the mainstay of our export earnings, reflected far fewer orders received between December and March of last fiscal, the time-period marked by effects of political instability followed by massive labour unrest. As ill- luck would have it, warmer winter in the west led to a deficit in orders, too. There was underperformance in some other areas than garment such as frozen foods, leather, ceramics, jute goods and engineering products.
We would like to believe in the optimism expressed by BGMEA and BKMEA leaders based on increasing placement of orders since September that things will even out at the end of the year. We must be prepared to seize the opportunity of larger export orders with the onset of winter in November. As for frozen foods, the compliance status has improved so has also that of the garments sector. We should have by now seen the end of labour unrest in the garment sector. Whatever gaps remain in the compliance area need to be energetically filled in. So far as timely delivery on orders is concerned, we are pinning hopes on increased port efficiency that is in evidence. Adequate credit and fiscal support including lower interest rate could work wonders.
Finally, we have to diversify both in terms of exportable products and market accesses. It is noteworthy that in the last fiscal year, export earnings from vegetables, agro-processed foods and flower, stood out in comparison with other products pointing to where the emphasis should be placed.
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