Review on Export Policy of Bangladesh: 2018-2021

Government eyes $60b exports during 2018-21

The government has come up with a host of incentives including low-interest loans under the
new export policy to facilitate receipts of $60 billion by fiscal 2020-21. Last fiscal year, exports
fetched $36.66 billion, up 5.81 percent from fiscal 2016-17, but fell short of the government's
target of $37.5 billion, according to data from the Export Promotion Bureau.

The new export policy for fiscal 2018-19 to fiscal 2020-21 was approved yesterday at the cabinet
meeting chaired by Prime Minister Sheikh Hasina. Leather will get special focus in the new
export policy to reduce dependency on garment, which accounts for more than 80 percent of
Bangladesh's export receipts. Benefits enjoyed by the garments industry will be extended to the
leather industry. Programmes will be taken to upgrade the shoes and leather goods related
industries to green standards. Central bonded warehouse will be set up for storing the raw
materials of the leather industries and reducing the lead time.

The number of highest priority sectors has been raised to 15 from existing 12 and the number of
special development sectors to 19 from existing 14, said Shafiul Alam, cabinet secretary, at a
briefing after the meeting. The priority sectors and special development sectors will be given
special benefits including subsidies, tax benefits. The three new priority sectors are denim, active
pharmaceutical ingredients and reagents. 

The five included in the special development sectors are: light engineering products (motor cycle
batteries), photovoltaic module, cashew nuts (raw and processed), processed crabs and toys. This
time, special steps were taken to extend easy term loans and other banking facilities to export-
oriented industries from the Export Development Fund (EDF) of the Bangladesh Bank. The
central bank will form two funds: technology development and upgradation fund and the green
fund. Loans will now be provided for modernisation and technology upgradation of export-
oriented industries.

In the export-oriented industries, local value addition has been cut to 30 percent from existing 40
percent. Frozen fish and fish processing industries will be given logical amount of tax facilities
as export-oriented industries. Pharmaceutical and information technology sectors will be given
various tax and incentive benefits. A special economic zone will be built at Gazaria in
Munshiganj for the plastic sector soon. The garment sector will be able to send samples worth a
maximum of $20,000 instead of existing $15,000. The cabinet also approved in principle the
drafts of Bangladesh Sugar-crop Research Institute Act, 2018 and Bangladesh Road Transport
Corporation Act, 2018.