Economy
Exporters Shift Focus to Customs and Energy Challenges Amid US Trade Sanctions Speculation
Leading exporters in Bangladesh are prioritizing the resolution of critical domestic issues, such as customs complexities and energy insecurity, over concerns about potential US trade sanctions. Despite discussions surrounding the impact of possible sanctions, exporters stress that daily challenges, particularly related to customs procedures and energy shortages, are more pressing and hinder their competitiveness. With a target of $100 billion in ready-made garment exports by 2030, exporters emphasize the need to address these key constraints to achieve the ambitious goal.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), highlights the daily hassles faced with customs officials, emphasizing that these challenges outweigh concerns about US sanctions. Hatem points to customs blocking shipments for seemingly arbitrary reasons, impacting the efficiency of the supply chain. Additionally, the energy crisis, particularly in the Narayanganj belt, adds uncertainty to the industry’s operations.
Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), underscores the time-sensitive nature of the garment business, urging customs officials to recognize the impact of delays. He cites examples of customs-related anomalies and emphasizes the need for streamlined processes.
Mohammad Ali Khokon, President of the Bangladesh Textile Mills Association (BTMA), expresses concern about unnecessary inquiries from customs officials, creating delays and additional costs for importers. Khokon questions the feasibility of achieving the $100 billion export target without addressing fundamental issues, including a deep-sea port.
Concerns about energy dependence on imports are raised by Khokon, who suggests incentivizing investment in the woven textile industry. The need for a comprehensive, long-term energy policy is highlighted to support industrial growth. Ahsan Khan Chowdhury, CEO of PRAN-RFL Group, emphasizes the importance of diversifying exports and attracting foreign investment through incentives, tax benefits, and an investor-friendly environment.
Shams Mahmud of Shasha Denims stresses the importance of policy consistency, urging the government to address exchange rates, energy subsidies, and provide incentives for research and development. The implementation of energy auditing and recognition of industries based on energy efficiency performance are proposed.
In summary, exporters are advocating for a holistic approach to resolve domestic challenges, focusing on customs efficiency, energy security, and an investor-friendly environment to propel Bangladesh towards its ambitious export target.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
