Exports grow 6.78% in September

Infographic: TBS

Bangladesh's merchandise exports grew by 6.78% year-on-year in September, primarily driven by readymade garment shipments, despite prolonged labour unrest in various parts of the country hampering production.

According to data released by the Export Promotion Bureau (EPB), the country's earnings reached $3.51 billion in September, representing a $220 million increase compared to the same month last year.

The state agency provided this updated data after four months, reflecting real-time shipment updates as per ASYCUDA World from the National Board of Revenue (NBR), EPB Vice Chairman Anwar Hossain said at a press conference on monthly export earnings at his office on Wednesday (9 October).

Explaining the reasons behind previous mismatches, the EPB stated that they occurred due to multiple factors, including duplicate entries of export products, issues related to cutting, making and trimming (CMT), inclusion of discounts, stock lots, and sample products as export items, and the classification of EPZ exports as general exports in NBR data.

Moreover, the inclusion of local export earnings and export receipts that are less than LC values also contributed to the discrepancies in the export data, the EPB stated.

During the press conference, EPB Director Abu Mukhles Alamgir Hossain presented a keynote, which indicated that in FY23, actual exports totalled $46.43 billion, while the mismatched data suggested $55.55 billion. In FY24, the real export figure was $44.46 billion, while the mismatched data reported it as $55.28 billion.

In June, the Bangladesh Bank revealed that shipments for the July-April period of FY24 were nearly $10 billion lower than the export figures reported by the EPB, raising concerns that government policies were based on inaccurate data.

In response to the discrepancies, the EPB has since stopped publishing export figures.

"We are working to digitise the EPB data. The EPB, NBR, and BB will collaborate to ensure that mismatches do not occur in the future," said EPB Vice Chairman Anwar, adding that the EPB and the industry would work together to explore new markets, considering the preferences of customers in various countries.

The EPB vice chairman said they will meet with stakeholders once a month to explore their capabilities and challenges in diversifying their markets and product offerings. Additionally, they will also collaborate with the commercial counsellors of each mission to identify 3-5 products to target for capturing the market in that country.

He said, "From now on, we will come up with a detailed analysis of the export earnings every month."

September quarter exports grow 

According to EPB data, in the first quarter of the current fiscal year, exports grew by 5.04% to reach $11.37 billion, up from $10.82 billion in the same period of FY24.

In the September quarter, the readymade garment (RMG) sector, the country's highest export earner, generated $9.23 billion, representing a 5.34% increase from $8.82 billion in the equivalent period of FY24, accounting for 81.70% of total export earnings.

Knitwear earned $5.22 billion, a 5.72% increase from $4.94 billion, while woven garments earned $4.06 billion, reflecting a 4.85% increase from $3.88 billion compared to the July-September quarter of the last fiscal year.

What exporters say 

Shams Mahmud, managing director of Shasha Denims, pointed out that the export growth appears inflated due to comparisons with revised export data. He added that the rise in export earnings also reflects increased operational costs, such as gas, electricity, and wage hikes.

He further explained that this year, Bangladeshi apparel exporters received additional orders from China due to geopolitical factors. However, this period typically sees fewer orders. Despite this, many shipments faced airfreight or discounts due to political unrest, which disrupted export schedules.

Shams cautioned that if the government considers import and operational costs, the actual growth might not exist. He expressed concern that some buyers are avoiding Bangladesh due to the ongoing law-and-order situation but remains hopeful that once stability returns, business will recover.

"If the situation improves soon, we can expect more business to flow back to Bangladesh," he concluded.

Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said exporters have long raised concerns about discrepancies between reported export figures and actual performance. The government has now identified and corrected this gap, which is a welcome move for the industry.

With the revised data, apparel exports showed healthy growth, though this could have been even higher if not for the recent labour unrest in major industrial zones such as Savar, Ashulia, and Gazipur.

He expressed gratitude to all stakeholders, including relevant ministry advisers, the army, industrial police, and trade union leaders, for their efforts in restoring normalcy. However, he noted it would take time to fully recover from the loss in production and reputation caused by the disruptions.

Other sectors' performance 

Among other notable sectors, leather and leather goods experienced positive growth of 11.16%, reaching $283.39 million, up from $254.94 million in the first quarter of FY24.

In July-September of FY25, home textiles witnessed a slight decline of 1.21%, totalling $185.52 million, down from $187.8 million a year ago.

Export earnings from agricultural products saw positive growth of 3.18%, increasing to $264.76 million, compared to $256.61 million in the same period of FY24.

Export receipts from jute and jute goods dropped by 19.81%, falling to $177.61 million, down from $221.5 million in July-September of FY24.

Another potential export sector, engineering products, recorded negative growth of 5.9%, totalling $110.38 million, down from $117.3 million a year earlier.