The Ministry of Commerce has set an ambitious $63.5 billion export target for fiscal year 2025–26 (FY26). On paper, it represents confidence and hope for Bangladesh’s export-driven economy. But ask the country’s exporters, and they will tell you: our real fight is not with the world, but with ourselves.
Bangladesh has the demand, the cost competitiveness, and even a rare tariff advantage in the United States market. Yet the question remains: can the country overcome the domestic bottlenecks of energy crisis, banking instability, customs hassles, and high borrowing costs to make this dream a reality?
Breaking Down the Target
The $63.5 billion target is divided into:
- Goods exports: $55 billion (13.4% higher than last year)
- Services exports: $8.5 billion (18.7% growth)
As always, the readymade garments (RMG) sector will carry the bulk of the burden. Out of the total goods export target, $44.49 billion must come from RMG alone:
- Woven garments: $20.79 billion (14.3% growth)
- Knitwear: $23.70 billion (12% growth)
Other sectors, leather, jute, agriculture, and plastics, have also been given growth targets. But their track record suggests they face deeper structural problems that mere numbers cannot solve.
When asked about challenges, exporters do not start with global competition. They start at home.
Gas shortages and irregular electricity supply are crippling factory production. Energy-intensive industries like textiles and leather have already lost production hours, raising costs and hurting competitiveness.
The banking sector crisis is another pressing issue. With liquidity shortages, long delays in opening letters of credit (LCs), and rising interest rates under contractionary monetary policy, exporters say they are being strangled from the inside.
“There is demand in the global market. We are competitive. But how can we meet increased orders when gas is irregular, factories face sudden outages, and LC processing is stuck in a broken banking system?”
Mohammad Hatem, President, BKMEA
Customs and port-related hassles are equally damaging. Exporters frequently allege corruption and over-monitoring at ports, which they say act less like facilitation and more like obstruction.
For the first time in years, Bangladesh enjoys a tariff edge in the United States, its single largest export destination. With average tariffs on Bangladeshi apparel at 36.5%, lower than many competitors, the opportunity is huge.
But it is not without complications.
“Yes, we have a window of opportunity. But buyers are negotiating harder. Sometimes they want us to share the tariff benefits.”
AK Azad, Chairman, Ha-Meem Group
Some exporters caution against overdependence on the US. Trade policies can change with a new administration, they warn, and benefits can disappear overnight.
Leather & Leather Goods
- Target: $1.25 billion (9.2% growth)
- Reality: The sector has been stuck between $1 and $1.2 billion for two decades.
- Challenges: Non-compliance at the Savar Tannery Estate, poor infrastructure, and corruption at customs.
“I can meet my footwear export target if customs simply act as facilitators, not destroyers.”
Nasir Khan, MD, Jenys Shoe
Jute
- Target: $900 million (9.7% growth)
- Concerns: Non-tariff barriers from India, lack of R&D investment, and slow lab-testing improvements.
Agriculture
- Target: $1.21 billion (22.4% growth)
- Worry: Exports have declined for three consecutive years. Growth depends heavily on whether India reopens land ports.
“If India reopens land ports, there is a possibility. Otherwise, it will be tough.”
An agro-exporter
In response to exporters’ concerns, Commerce Secretary Mahbubur Rahman has announced a joint meeting next week with energy and banking sector stakeholders, as well as sector-specific consultations with exporters from 22 industries.
Many welcome this step, but skepticism remains.
“Is the government setting targets to listen to us, or just to announce big numbers?”
Anwar-ul Alam Chowdhury Parvez, President, Bangladesh Chamber of Industries
Optimism is not absent. Exporters know the global market is eager, especially as China gradually retreats from low-end apparel. The appetite is there. The capacity is also ready. What is missing is an enabling domestic environment.
“There’s nothing wrong with aiming high. But if we fix gas, stabilize banking, and improve ports, you’ll see—we won’t just hit the target, we’ll beat it.”
Mohammad Hatem, BKMEA
The government’s number is bold. But for Bangladesh, hitting $63.5 billion will depend less on tariff edges or foreign demand and more on whether it can finally solve the old, familiar problems at home.
