Bangladesh Targets $63.4 Billion in Exports for FY27 Despite Global Headwinds

Dhaka, July 26, 2026 — The Bangladesh government has set a merchandise export target of 💰 $55.2 billion and a services export target of 💰 $8.2 billion for fiscal year 2026-27, bringing the total to $63.4 billion. The targets represent a 15 percent increase over actual export earnings in the previous fiscal year, Commerce Minister Khandakar Abdul Muktadir announced at a press conference at the commerce ministry. 📊

🏛 However, economists and business leaders cautioned that achieving the targets would be difficult amid an uncertain global environment, persistent domestic energy shortages, and newly imposed US tariffs on Bangladeshi goods.

📊 Export Performance in FY2025-26

Bangladesh exported $48 billion worth of goods in FY2025-26, a decline of 0.58 percent from the previous year. ⚠ Key highlights of the export performance include:

• 👕 Garment exports (accounting for 80%+ of total earnings) fell 1.64% year-on-year to $38.70 billion
• 📈 Before FY2024-25, merchandise exports had declined for two consecutive years after reaching a record $52 billion in FY22
• 🚀 The new target assumes a significant rebound from the current downward trend

👥 Industry Response

🤝 Industry leaders expressed skepticism about the ambitious target, citing multiple challenges:

• Abdur Razzaque (Chairman, Research and Policy Integration for Development): Achieving 15% export growth is possible but considerable uncertainty remains. The latest 10% US tariff could affect exports, though weak prior-year shipments may allow some rebound.
• Mohammad Hatem (President, Bangladesh Knitwear Manufacturers and Exporters Association - BKMEA): Achieving even 10% growth would be difficult given the ongoing gas shortage that has disrupted industrial production. "Exporters will be satisfied if they can achieve 2% to 4% growth," Hatem said.
• M Masrur Reaz (Chairman & CEO, Policy Exchange Bangladesh): The target will be difficult to achieve because of both domestic and external pressures.

🔗 Trade Agreements and Policy Support

🌏 The government is counting on several trade agreements and policy measures to boost exports:

• 📦 EPA with South Korea — expected to be signed within the next few months
• 📦 EPA with Japan — signed in February, expected to take effect after Parliament ratifies it
• 📦 Six Free Trade Agreements — planned to be signed by end of 2026
• 📦 FTA with European Union — under negotiation to retain duty-free access post-LDC graduation

🏭 LDC Graduation Extension

✅ In a significant development, Bangladesh's graduation from Least Developed Country (LDC) status may be delayed by another three years. Two UN bodies — the United Nations Committee for Development Policy (UNCDP) and the United Nations Economic and Social Council (ECOSOC) — backed Bangladesh's request for extension.

📅 The extension could provide greater certainty for businesses and trading partners by allowing Bangladesh to retain its LDC status until 2029, the minister said.

🚢 Energy Supply Challenges

⚠ Commerce Minister Muktadir acknowledged that improving energy supplies to industry remained a top priority, though it "could not be done overnight." The government is procuring two additional Floating Storage and Regasification Units (FSRUs) to increase gas supplies to factories.

🏭 The ongoing gas shortage has disrupted industrial production over the past 10 days, further complicating the export growth outlook. Lower exports in FY2025-26 were driven by both domestic political uncertainty and adverse global conditions, the minister noted.

📈 Outlook

🌏 With an elected government now in place, the minister expressed optimism that policy stability and predictability would help boost exports of goods and services. The government is banking on business stimulus measures, budget support, and greater policy stability to revive export growth.

📊 However, with global headwinds including US tariffs, weak consumer demand in key markets, and rising inventories continuing to weigh on global orders, achieving the 15% growth target will require extraordinary performance across all export sectors.