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The commerce ministry’s ambitious $63.5 billion export target for FY26 has sparked optimism, but exporters caution that long-standing domestic constraints could derail progress despite favorable global conditions.

Of the total target, $55 billion is projected from goods exports—13.4 percent higher than last year—while $8.5 billion is expected from services, an 18.7 percent jump. The readymade garments (RMG) sector alone has been tasked with delivering $44.49 billion, including $20.79 billion from woven products and $23.70 billion from knitwear.

The recent shift in US tariff policy offers Bangladesh a rare competitive edge, especially in apparel. With an average tariff rate of 36.5 percent—lower than many global peers—exporters see opportunities to strengthen their foothold in the American market.

Yet, industry leaders say domestic bottlenecks remain the bigger threat. Gas shortages, banking sector turmoil, customs inefficiencies, and high borrowing costs are cited as key barriers to meeting the target.

“There is demand in the global market, and we are competitive. But how can we fulfil orders when gas supply is irregular, power outages disrupt factories, and LC processing is stuck in a broken banking system?” said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Some exporters warn against over-reliance on the US market. “We have been disappointed before by sudden policy shifts. Even a new government could revoke tariff benefits overnight,” said an RMG exporter from Chattogram.

Sectoral Ambitions and Challenges

• Leather & Leather Goods: Target set at $1.25 billion, a modest 9.2 percent rise. Exporters complain of compliance bottlenecks, inefficiencies at the Savar Tannery Estate, and customs hurdles.
• Jute & Jute Goods: Targeted at $900 million, up 9.7 percent. Progress depends on tackling non-tariff barriers in India and improving R&D and lab testing capacity.
• Agriculture: Targeted at $1.21 billion, a 22.4 percent rise. Exporters remain skeptical due to three years of declining shipments and restrictions at India’s land ports.

Reforms Seen as Urgent

Commerce Secretary Mahbubur Rahman has announced a joint meeting with energy and banking stakeholders next week, alongside consultations with exporters from 22 sectors. Business leaders view this as a positive step, but stress that urgent reforms are needed to match ambition with action.

Anwar-ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, summed up the sentiment:

“There is appetite from US and EU buyers, especially as China retreats from low-end apparel. But is the government setting targets just for the numbers, or will it actually address the real problems exporters face?”

Despite the hurdles, many exporters remain confident that, with reliable energy, stronger banking governance, and improved port logistics, the target is not only achievable but could even be exceeded.

“There’s nothing wrong with aiming high,” said BKMEA’s Hatem. “Fix the gas crisis, stabilise banking, and improve port logistics—then you’ll see us surpass the $63.5 billion mark.”