Finance minister AHM Mustafa Kamal has proposed to continue with the additional export incentive of 1 per cent in the next fiscal year in addition to existing other incentives.
Placing the proposed budget for the fiscal year 2020-2021 on Thursday, he said the government has kept on providing all kinds of benefits, including cash incentives, to the readymade garments (RMG) industry as it is the principal export sector of the country.
An additional 1 per cent export incentive is being provided to all categories of RMG exports from FY2019-20.
However, due to the growing trade tensions and the recession in world economy, a downturn in global goods trade in 2019 and 2020 has been forecasted.
Therefore, minister Kamal said, overall exports from Bangladesh, including that of RMG, have continuously been declining.
Due to a reduction in demand in developed countries, he said, RMG export this year is showing a negative trend compared to the previous year.
The finance minister said exports will reduce further in the coming days due to the global lockdown amidst the outbreak of coronavirus.
However, he said, it is expected that the RMG industry will see a rebound with the support from the stimulus package being offered by the government to counter the COVID-19 pandemic.
The finance minister also hoped that export will return to the desired positive trend in FY2020-21.