Exports in Jan up 7% to $4.5b YoY

The country's merchandise exports grew by over 7% to $4.5 billion in January, compared to $4.2 billion in the same month a year ago, driven largely by an increase in shipments of ready-made garments.

With this, export earnings surpassed $29 billion in the first seven months of the current fiscal year, reflecting growth of over 12%, according to provisional data from the National Board of Revenue (NBR). Export earnings during July to January of the previous fiscal year stood at $25.93 billion.

Meanwhile, remittance inflow increased to 2.19 billion in January, according to data from the central bank. This marks a 3.40% growth compared to the same period last year. However, remittance inflow in January dropped to a six-month low due to strict regulations on the dollar rate.

Remittance inflow crosses $2b again in January, registers 3% growth

Shams Mahmud, managing director of Shasha Denim, told The Business Standard that export earnings have maintained steady growth in recent months, reflecting a positive trend.  

He called for the government to analyse value addition margins, as local backward industries are struggling to supply export-oriented apparel factories. "As a result, apparel exporters are increasingly relying on imported yarn and fabrics."

Mahmud stressed the importance of policies ensuring a stable energy supply and supporting the green transition, which will be critical for business sustainability. He also urged the government to address LDC graduation challenges by strengthening backward linkages.  

Noting a shift in orders from China due to the US government's 10% tariff hike, he said, "If we can ensure an adequate energy supply, we could capture around 15% of these diverted orders."  

He further said green and highly compliant factories are expanding steadily but noted that SMEs are struggling. "The industry needs financial support from the government to help SMEs survive."

Urmi Group Managing Director Asif Ashraf said they are receiving strong orders from buyers as market demand continues to grow.  
"As exporters, we [Urmi Group] achieved over 11% growth in the last calendar year," he added. He also noted an increase in inquiries from new buyers. 

Mohammad Hatem, President of BKMEA, acknowledged a recent uptick in orders but pointed out that rising production costs continue to pressure exporters. "Price competitiveness remains a challenge, and adequate utility supplies are crucial for meeting buyers' lead times."

He also stressed that the law and order situation has yet to fully stabilise, which is essential for restoring buyer confidence.

Lowest remittance in six months

Central bank data shows January recorded the lowest remittance inflow in six months since the interim government took office in August. The previous low was in July when student protests, internet suspensions, and political instability caused remittance inflows to drop below $2 billion.

Senior bank officials said remittance inflows are highly sensitive to dollar exchange rates. When the rate rises, inflows tend to increase. In late December, the remittance exchange rate peaked at Tk128, resulting in a record-high inflow of $2.64 billion.  

However, in early January, the central bank tightened control over the dollar rate, bringing it down to Tk122. Consequently, remittance rates remained below Tk122 during the first two weeks of the month. 

As import payment pressure grew, banks gradually began offering higher rates, with the latest data showing a maximum rate of Tk122.30 as of last Thursday.  

According to the central bank, total remittance inflows for the current fiscal (July–January) reached $15.97 billion, marking a 23.7% increase from the $12.91 billion recorded in the same period last year.  

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, told TBS that banks faced challenges with the dollar rate in January. However, inflows improved towards the end of the month.

"I expect this trend to continue," he added.