Experts at a virtual dialogue called for adequate policy support to the non-RMG sectors to help them diversify exports after the country’s graduation from LDC status.

They also put emphasis on policy reforms and skill development for the export diversification during the post-graduation period, said a press release.

Dhaka Chamber of Commerce and Industry (DCCI) organized the dialogue on “Challenges and way forward on export diversification of Bangladesh upon LDC graduation” through a virtual platform.

“RMG is a success model to us. But now it is the high time to give focus on other potential non-RMG sectors like agriculture, pharmaceuticals, light engineering, ICT, leather goods and jute sector,” said noted economist Prof Dr Mustafizur Rahman, also a distinguished fellow of Centre for Policy Dialogue (CPD).

At present 70 per cent of the exports are under preferential market access. After LDC graduation compliance will be a major issue. “We’ve to enforce domestic regulations WTO compliant. In that case industry readiness is more important. Our labour may be cheap….so we have to make our labours productive,” he said.

Dr Rahman stressed the need for innovative finance, forging comprehensive economic partnership with potential partners, and enhancing legal capacity to deal with larger commercial disputes after the graduation.

Also read: Bangladesh sets $51-bn export target: Minister

DCCI President Rizwan Rahman said Bangladesh will be deprived of many international support measures and will face different duty and non-duty tariff related challenges during the post-graduation period.

Noting that Bangladesh includes 1750 goods in its export basket of which 81 per cent constitutes from RMG sector, he said “Our small and medium scale industries like jute, agro processing, leather goods, footwear, pharmaceuticals, light engineering, ICT including RMG and other emerging sector will have to face various competitions in the international market after the graduation.

Besides, Bangladesh will face a challenge of competing in the international market, maintaining products’ quality, adopting changed consumer behavior, cost of research and innovation, Rizwan added.

“We’ve five years more as a breathing time and by this time we need to make our industries ready to face the challenges of post-LDC period, said the DCCI President.

Vice Chairman and also CEO of Export Promotion Bureau (EPB) AHM Ahsan said LDC graduation is a pride for Bangladesh as well as it will create some challenges for the country. But the government is taking necessary strategies for smooth and sustainable LDC graduation, he said.

“Not only products diversification, we have to focus on geographical (export market) diversification as well,” he said.

Also read: Exports: Stakeholders push for addressing containers, vessels shortage

“Service sector contribute about 60 per cent to our GDP so we have to give emphasis on this sector. Last year 81 per cent export earnings came from RMG sector alone. After LDC we cannot rely only on one specific sector. We have to follow RMG success model to other promising sector and also nourish those sector in this breathing space,” he added.

“It is high time we work on how to reduce cost of production, develop skills, enhancing marketing policy, promoting products,” said the EPB chief executive officer.

President of Bangladesh Association of Software & Information Services (BASIS) Syed Almas Kabir, President of Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh Saiful Islam, Managing Director of Sonali Aansh Industries Ltd Mahbubur Rahman Patwari, President of Bangladesh Engineering Industry Owners Association Abdur Razzaque and General Manager of Incepta Pharmaceuticals Ltd Naimul Huda, among others, spoke at the dialogue.