The government has set an ambitious export target of $63.5 billion for fiscal year 2025-26, banking on Bangladesh’s competitive position under the new US tariff regime to drive growth. The target includes $55 billion from goods exports, marking a 13.4 percent increase from last year, and $8.5 billion from services, up 18.7 percent, according to the Ministry of Commerce.
Commerce Adviser Sk Bashir Uddin linked the optimism to the country’s tariff advantage in the US market, where the average rate stands at 36.5 percent, significantly lower than many competitors facing rates above 60 percent. Negotiations are underway to reduce certain duties from 20 percent to 15 percent or less, alongside removing non-tariff barriers. Food items, particularly in some categories, already face tariffs as low as zero to 1 percent.
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Sectoral targets reflect both consolidation and diversification. The readymade garment (RMG) sector, Bangladesh’s top export earner, aims for $44.49 billion, split between $20.79 billion in woven products (14.3 percent growth) and $23.70 billion in knitwear (12 percent growth). Other key goals include home textiles at $1.02 billion (17 percent growth), leather and leather goods at $1.25 billion (9.2 percent growth), frozen and live fish at $539 million (22 percent growth), jute and jute goods at $900 million (9.7 percent growth), and agricultural products at $1.21 billion (22.4 percent growth).
Industry leaders have welcomed the target but warn that challenges such as energy shortages, banking sector inefficiencies, customs delays, and political unrest must be addressed to reach or exceed it. Ha-Meem Group’s AK Azad cautioned that while tariff advantages are helping, higher US duties have also led buyers to demand lower prices and smaller volumes. BKMEA President Mohammad Hatem stressed that solving domestic bottlenecks could enable Bangladesh to outperform the set goal.
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The government plans to meet with business representatives, the Energy Division, and banking sector stakeholders next week to tackle these issues. Ongoing negotiations for Free Trade Agreements with Japan, South Korea, and Singapore aim to expand market access, while efforts to retain current preferences continue.
Experts note that while the US remains Bangladesh’s largest single-nation export destination, overreliance on a few key markets could hinder diversification. Sustaining high export growth will require broadening into non-traditional markets, strengthening supply chain resilience, and adapting to potential global trade policy shifts.