Exports end year $7 billion short of target

❐ BD Digest Desk

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The 2025-26 fiscal year ended with export earnings falling short of the target by nearly $7 billion. The country’s export earnings in the outgoing fiscal year were $48.02 billion, which is 0.58 percent less than the previous fiscal year.

However, exports saw a growth of about 26 percent in June, the last month of the fiscal year, indicating a partial recovery in the sector.

This information was revealed in the latest updated report of the Export Promotion Bureau (EPB) published on Thursday.

According to EPB data, export earnings stood at $48.02 billion in the 2025-26 fiscal year (July-June). In the previous fiscal year, this income was $48.28 billion. This means that export earnings have decreased by about $280 million in the space of one year.

 

However, the government’s target was $55 billion. As a result, for the second consecutive fiscal year, there was a large gap between the target and actual export earnings.

However, exports showed a positive change in the last quarter of the year. Export earnings in June were $4.22 billion, up 25.91 percent from the same period last year.

In June of the 2024-25 fiscal year, this income was $3.3389 billion. As a result, there has been three consecutive months of export growth – April, May and June. Prior to this, export income had been declining for eight consecutive months.

According to those concerned, this growth came as a result of increased purchase orders in the international market towards the end of the year and some shipments being completed in June. However, they believe that reducing production costs, maintaining stable energy supply, and improving the overall business environment are essential to sustain this momentum.

In this regard, Dr. Zahid Hossain, former chief economist of the World Bank Dhaka office, said that although the growth in June is positive, the picture for the entire fiscal year is more important.

He said that the failure to achieve the target and the decline in export earnings show that the weakness of the global market has not yet been fully addressed. At the same time, there is a need to increase the competitiveness of Bangladesh’s export sector.

He also said that over-reliance on the ready-made garment sector alone can create risks in the long run. Therefore, it is necessary to focus on increasing exports of high-value industrial goods, agro-processed products and engineering products, as well as entering new markets and reducing the cost of doing business.

According to the report, the main source of export earnings was, as always, the ready-made garment sector. Exports from this sector increased by 21.52 percent in June. Earnings from garment exports during the month were $3.3877 billion.

Of this, exports of knitwear increased by 19.49 percent and exports of woven garments increased by 24.02 percent. The revenue from this sector in the entire fiscal year was more than $38.7 billion.

Apart from apparel, other sectors also saw significant growth in June. Exports of leather and leather products increased by 47.68 percent, jute and jute products by 76.60 percent, home textiles by 59.95 percent, engineering products by 44.74 percent, and agricultural products by 46.77 percent.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, an exporters’ organization, said that although purchase orders increased towards the end of the fiscal year, the initial slowdown affected the results for the entire year.

According to him, just increasing purchase orders is not enough; reducing production costs, ensuring uninterrupted gas and electricity supply, and increasing port capacity are equally important.