The export of readymade garments experienced negative growth in the April-June quarter of the past financial year 2024-25, compared to the preceding quarter of January-March in FY25, primarily due to extended protests by the National Board of Revenue officials and tariff concerns.
According to Bangladesh Bank data, the export from the RMG in the final quarter of FY25 stood at $9.11 billion, which was 11.92 per cent lower than $10.34 billion in the January-March quarter of FY25.
However, the earnings from the same quarter of the previous financial year witnessed a 3.15 per cent growth. The earnings in the final quarter of FY24 were $8.83 billion, said the central bank data.聽聽
The BB data, titled Quarterly Review of Readymade Garments, stated that during April-June of FY25, Bangladesh鈥檚 RMG sector faced multiple pressing issues, including downswings in global economic activity and trade policy shifts, which impacted its weak quarterly export performance.
Moreover, key among these policy shifts was the announcement of a 35 per cent tariff by the United States, which, although not yet implemented, might cause order deferrals and heightened uncertainty among buyers.
Simultaneously, India restricted RMG imports from Bangladesh via land routes, which disrupted logistics and limited Bangladesh鈥檚 access to a key regional market, the central bank added.
Along with these issues, the NBR encountered an employee strike that caused customs delays, impeded smooth shipment processing and significantly hindered the timely shipment of goods.
Meanwhile, the US reduced tariffs on Bangladeshi exports to 20 per cent on July 31, bringing relief for the country鈥檚 exporters, especially RMG makers.
The broader global economic headwinds, combined with ongoing domestic issues related to rising production costs and limited diversification of export markets, contributed to a volatile export trend, according to the central bank report.聽
During the final quarter of FY25, the import value of raw materials such as raw cotton, synthetic or viscose fibre, synthetic or mixed yarn, cotton yarn, and textile fabrics and accessories for garments was $3.94 billion, accounting for 43.22 per cent of total RMG export earnings.
The net exports from this sector totalled $5.18 billion in the April-June period of FY25.
The central bank report stated that net exports were 15.08 per cent lower than those of the preceding quarter,聽January-March, which was $6.09 billion.
The net exports, however, were 2.69 per cent higher than those of the same quarter of FY24, which was $5.04 billion. During FY25, the RMG sector made a significant contribution of 8.52 per cent to Bangladesh鈥檚 nominal GDP.
The total RMG export earnings for FY25 stood at $39.35 billion, indicating a higher growth of 8.90 per cent as compared to that of the previous fiscal year鈥檚 $36.13 billion, the Bangladesh Bank report added.
During April-June of FY25, Bangladesh鈥檚 RMG exports were primarily directed to nine major destinations: including the US, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada and Belgium.
Export earnings from these countries amounted to $7.24 billion during the reporting period.
According to the quarterly report, the government and the Bangladesh Bank have taken several measures to facilitate the production and export of the RMG sector, including pre-shipment credit, incentives for export expansion and funds for export green transformation, export facilitation and export development.
The report also stated that the performance of Bangladesh鈥檚 RMG sector during April-June FY25 was mixed due to external shocks and domestic inefficiencies.
Rising geopolitical tensions, trade restrictions and infrastructure bottlenecks pose a threat to sustained growth unless addressed proactively.
The report also expected that the significant performance of the RMG sector would set a positive outlook for the coming years and would position Bangladesh as a leading apparel exporter on the global stage.
