The government has set the export target for the current fiscal year at $54 bn, up 15.20 percent than that a year ago. The merchandise export target has been fixed at $45.50 bn, which is 12.25 percent higher than the achievement of last fiscal year. Meanwhile exports from services sector has been set at $8.50 bn, a 34.10 percent year-on-year rise from that attained last fiscal year.

This year the garment export target has been fixed at $38.20 bn, which is 11.91 percent higher than the achievement of last fiscal year. Out of this amount, $18.85 bn has been targeted from knitwear and $19.35 bn from the woven sector. Last year Bangladesh exported garment items worth $34.13 bn, registering a 11.49 percent year-on-year growth. The contribution of garment sector increased to over 84 percent from more than 82 percent last fiscal year. Last fiscal year the garment sector even exceeded the annual target by 4.42 percent. The target was set at $32.68 bn, according to data from the Ministry of Commerce.

Diversification in exports is slow despite government initiatives on providing cash incentives to different potential sectors. Apart from garment items, the leather and leather goods sector has been considered as one of the most important sectors having potential in the current fiscal year. It was the second highest earning sector after garments. Only leather and leather goods sector could exceed the one bn US dollar-mark after garment items last fiscal year.

If the current trend of export continues, it is very much possible to achieve the export target of $60 bn by the end of 2021. The target for the new fiscal year has been fixed on the basis of achievements of last year. Some of the other major factors which will help the industry to achieve the set-target include world economic outlooks, government policy supports, changes in the dollar exchange rate, market and product diversification, increase in capacity, improvement of safety standards in factories and effects of the US-China trade war.