Suman Rahman; Dbarta24— Bangladesh’s export earnings faced an early setback at the start of the 2026–27 fiscal year, validating concerns raised by exporters and economists.
Despite ambitious national growth targets, official data reveals a negative growth trajectory driven by persistent domestic energy shortages, production disruptions, and weak global demand.
According to figures released by the Export Promotion Bureau (EPB), export receipts for July fell by 0.90% year-on-year to $4.72 billion.
In the corresponding period of the previous fiscal year, the country earned $4.77 billion.
RMG Sector Faces Contraction
The ready-made garment (RMG) industry, Bangladesh’s primary export driver, experienced a 1.92% contraction, bringing in $3.88 billion in July compared to $3.96 billion in July 2025.
Within the apparel segment, knitwear exports declined by 0.90% to $1.84 billion, while woven garment exports dropped 3.16% to $1.54 billion.
Despite the dip, industry leaders highlighted the tough operating environment. Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), characterized the $3.89 billion apparel yield as a resilient start given the severe gas crisis and geopolitical instability.
“An achievement of $3.89 billion in a single month is a good start at a time when the garment industry is facing various adverse situations, including a severe gas crisis and ongoing geopolitical instability,” said BGMEA President Mahmud Hasan Khan.
However, he cautioned that Utilization Declarations (UD) for raw materials dipped by approximately 2.8% compared to July 2025, signaling potential prolonged stagnation unless energy security and policy support are addressed.
Global Headwinds and Domestic Challenges
Economists note that the decline reflects broader structural and global pressures. Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), pointed to global economic stress and supply chain disruptions.
“Negative growth in exports in the first month of the current fiscal year is not entirely unexpected. The global economy is still under various pressures. Economic activities and supply chains in many countries are being disrupted due to ongoing geopolitical tensions and wars in different regions,” noted CPD Executive Director Dr. Fahmida Khatun.
Distinguished Fellow at CPD, Professor Mustafizur Rahman, warned that achieving the government’s ambitious $63.40 billion export target for FY27—up from last fiscal year’s $48 billion actual realization—will be extremely challenging.
He emphasized that rising production costs, US tariff uncertainties, and elevated freight costs due to Middle East conflicts continue to weigh heavily on exporter competitiveness.
“To turn the export sector around, setting ambitious targets alone will not suffice. Along with reducing production costs, removing business hurdles, and ensuring a favorable environment for exporters, policy support aligned with changing global market dynamics is required,” stated Professor Mustafizur Rahman.
Mixed Performance Across Major Sectors
While primary sectors lagged, select non-apparel categories showed encouraging resilience:
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Jute & Jute Goods: Surged by 54% to $85 million, up from $55 million in July 2025.
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Home Textiles: Increased by 15.37% to $78 million compared to $68 million last year.
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Leather & Leather Products: Grew 2.81% to $131 million, bolstered by a 5.71% rise in leather footwear ($78 million).
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Non-Leather Footwear: Rose 5.52% to $54 million.
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Plastics: Recorded a modest 2% growth to reach $22 million.
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Frozen & Live Fish: Declined by 13.28% to $36 million.
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Agricultural Products: Fell by 9% to $82 million.
The negative start to FY27 highlights the urgent need to resolve structural bottlenecks, particularly domestic fuel and power stability.
Industry experts urge prompt policy interventions to help manufacturing units stabilize production capacity and regain momentum ahead of the second quarter.