Bangladesh’s merchandise exports posted positive growth for the second consecutive month, surging by 20.6% year-on-year in October, largely due to increased shipments from the readymade garment (RMG) sector despite recent labor disruptions. According to data from the Export Promotion Bureau (EPB), export earnings in October FY25 reached $4.13 billion, up from $3.42 billion in the same month last year, following data revisions. Initially, the previous October earnings were reported at $3.76 billion.

Under the former government, export data often faced manipulation. The EPB later clarified that $10 billion in discrepancies for FY24 resulted from duplicate entries, issues with production processes, misclassification of EPZ exports, and differences between export receipts and LC values. Revised data showed that actual exports for FY23 were $46.43 billion, in contrast to the previously reported $55.55 billion, and for FY24, $44.46 billion, against an earlier figure of $55.28 billion.

Readymade Garment Sector Performance

In October FY25, the RMG sector generated $3.30 billion, a 22.8% increase from $2.68 billion in October FY24, contributing 79.8% of total export earnings. Knitwear exports reached $1.86 billion, a 24.6% increase from $1.50 billion, while woven garment exports totaled $1.44 billion, up 20.54% year-on-year.

RMG exporters attributed the growth to recovering demand from major markets and stabilization of labor conditions in key industrial zones. Abdullah Hil Rakib, Managing Director of Team Group and former Senior Vice President of BGMEA, noted that his company’s six manufacturing units are fully booked with orders through January, a typically slower period.

Tanvir Ahmed, Managing Director of Envoy Textiles, reported that the textile mill operated at 92% capacity in Q1 and has full orders for November, producing 4.5 million yards of denim fabric. He projects near 100% capacity in December and foresees strong demand into January and beyond.

Overall Export Growth and Sector Performance

In the first four months of FY25, exports rose by 10.8%, totaling $15.79 billion, up from $14.25 billion in FY24. The apparel sector was responsible for $12.81 billion, representing 81.2% of total merchandise exports.

Sectoral Highlights

• Agricultural Products: Export earnings grew by 7%, reaching $113.1 million, compared to $105.8 million in October FY24. Kamruzzaman Kamal, Marketing Director of PRAN Group, noted that agricultural exports faced challenges in previous months due to political instability. Still, he remains optimistic about further growth if the situation stabilizes.
• Leather and Leather Goods: This sector saw a slight decline of 1%, with earnings of $83.2 million, down from $84 million in October FY24.
• Home Textiles: Exports dipped by 1.21% to $185.52 million, compared to $187.8 million in October last year.
• Jute and Jute Goods: Export earnings fell by 7.6%, reaching $78.9 million, down from $85.4 million in the same period last year.
• Footwear: Exports surged by 40.87% to $42.91 million, up from $30.46 million in October FY24.
• Pharmaceuticals: The sector experienced a remarkable growth of 48.91%, with exports reaching $21.19 million, compared to $14.23 million in October of the previous fiscal year.

Challenges and Outlook

Local stability remains crucial for maintaining growth across sectors. Kamal emphasized that political stability is essential to boost exports. Exporters remain optimistic, citing strong orders and favorable projections from international buyers, indicating that Bangladesh’s export momentum could continue into the coming months.

Source: The Business Standard