Despite this, the sector experienced a 7.46 per cent decline in export earnings during the same period, alongside a 17.93 per cent reduction in the cost of raw material imports, as per a quarterly review report by the Bangladesh Bank, the country’s central bank.

The report disclosed that the import value of raw materials for garments totalled $3.37 billion in October-December of FY24, while RMG export earnings amounted to $11.77 billion, resulting in net export earnings of $8.40 billion with a local value addition of 71.35 per cent.

This contrasts with FY23, where net export earnings reached $8.61 billion with a 67.69 per cent local value addition during the same period.

Challenges such as the Russia-Ukraine conflict, currency depreciation, weak global demand, and high global inflationary pressure have slightly impacted exports in this quarter, stated the central bank, adding primary export destinations for Bangladesh’s RMG include the US, Germany, UK, France, Spain, Italy, Netherlands, Canada, and Belgium, which contributed nearly 68 per cent of the total exports.

Looking ahead the report cautioned that the RMG sector’s export receipts may face challenges due to global economic uncertainties, subdued economic activities, and a complex financial environment.

To address these challenges, various initiatives including pre-shipment credit, export expansion incentives, Export Facilitation Fund, Export Development Fund (EDF), and Green Transformation Fund (GTF) have been undertaken by the government and Bangladesh Bank.

The central bank emphasised the importance of inter-apparel diversification, reducing lead time, enhancing efficiency, investing in research and development, exploring new global markets, fostering a skilled RMG workforce, and modernising production processes to boost RMG export earnings in the future.

In the previous fiscal year, Bangladesh recorded apparel exports worth $46.99 billion, underscoring the significance of concerted efforts to sustain and enhance this vital sector’s performance.

Fibre2Fashion News Desk (DR)