Earning foreign currency through international trade is of vital importance to the economic development of Bangladesh. A developing country like Bangladesh needs foreign currency for further advancement of the domestic economy. The country's import needs are large and a strict emergence of infrastructure development, like industrialization, roads and highways etc, is high. In order to finance those imports, building infrastructure and to reduce the country's dependence on foreign aid grants, the government needs to enhance foreign exchange earnings through planned and increased exports.
Exporting goods are divided into (1) Traditional Commodities, alarmingly which is a short list and (2) Non-traditional Commodities, which requires attention. In terms of foreign earnings, the dependence on the traditional commodities is significant and it is high time to create a diversification in foreign earnings, through increase exports of non-traditional commodities. Why should we choose non-traditional commodities? Since more investment in the TC will increase the foreign earnings of the country at a decreasing rate but on the other hand steps taken for the NTC will accelerate the foreign earnings at an increasing rate.
To increase the export of non-traditional commodities - government, banks and the industrialist/entrepreneurs need to take responsibilities and perform their duties. Each of them has to play a vital role in this regard; as without any of them it will be a cripple’s journey.
The government needs to play a very important role regarding the laws, rules and regulations and export policies. They can enhance the opportunities by expediting the following tasks -
Simplification of export procedures and strengthening export-led co-operation through reducing regulatory role of the government
Providing fiscal incentives, like, Duty drawback, Income tax rebate on export earnings, Tax holiday, etc.
Encouraging establishment of backward linkage...
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