Bangladesh Export Policy for Fiscal Year 2021-24

The government of Bangladesh published the export policy for FY 2021-24 on 27 Mar 22. The new export policy will focus on encouraging the exploration of new markets and products. 

In the new policy, govt. emphasized on growing export-led economy and employment generation to offset Covid-19 induced challenges. Furthermore, Govt. attached the highest priority to 14 sectors to boost export earnings.

The priority sectors having untapped export potential include apparel having the highest value addition, denim, man-made fibre, garment accessories, pharmaceuticals, plastic products, shoes (both leather and synthetic), jute and agro-products, light engineering, shipbuilding and ocean-going trawler building, furniture, home textiles and home decor, luggage, active pharmaceutical ingredients and reagent.
This policy is also expected to combat the challenges of LDC graduation, which is set to happen in 2026.

This policy is also expected to combat the challenges of LDC graduation, which is set to happen in 2026.

The new export policy allows exporters to borrow up to 90% of the amount stated in the irrecoverable letter of credit or confirmed contract. Additionally, for a new industry to get export incentives value additions should be at least 30%. NBR would also consider providing bonded-warehouse facility to the partial exporting sector on a fast-track basis under Customs Act 1969.

The export goal for 2024 is $80 billion and govt. expect this target to be easily achievable. To make it easier for exporters to achieve this target, in this policy Govt. is highlighting the building capacity of the trade regime of Bangladesh through establishing connectivity and partnership with other countries.

Usually, the export policy is formulated every 3 years but due to the covid previous policy was extended for another year. In the new export policy orders, the government has also targeted to diversify the export of goods and markets, reasoning that the country's earnings had become heavily dependent on solely garment items. Additionally, govt. will bring ease to doing business through policy reformation.