Staff Reporter | Dhaka | Sunday, September 7, 2025
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angladesh’s ready-made garment (RMG) sector, the largest contributor to the country’s export earnings, is projected to reach $50 billion in exports by 2026, according to the Asian Development Bank (ADB). However, experts warn that global obstacles, particularly US tariffs, could make achieving this target difficult.
The ADB report, “Roadmap for Investment Policy Reforms and Sustainable Development in Bangladesh”, based on data from the International Finance Corporation (IFC), projects that RMG exports could reach $51 billion by 2026.
Historically, Bangladesh’s RMG exports have experienced fluctuations. Revised IMF data shows that exports for FY 2023-24 dropped by $2 billion to $36 billion, down from $38 billion in FY 2022-23. According to BGMEA data, exports rose from $27 billion in 2020 to $36 billion in 2021 and reached $46 billion in 2022, before showing a slight decline in the following years.
The situation has become more complicated due to new US tariffs announced in April. As Bangladesh’s largest single RMG market, the US could impose additional tariffs of up to 52%, affecting pricing and competitiveness. Although some tariffs have been temporarily suspended for three months, the $50 billion export target remains challenging.
Dr. Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD), told Biz Hour 24, “The situation before and after the US tariffs is completely different. If these tariffs remain in place, surpassing $50 billion in exports will be very difficult, as maintaining growth while absorbing additional costs will be challenging.”
Despite these challenges, the sector continues to expand. In the first nine months of FY 2024-25, Bangladesh earned $34 billion in RMG exports, up from $27 billion during the same period last year—an 11% increase. Analysts say that if this trend continues, significant growth could be expected by the end of the fiscal year.
Mahmud Hasan Khan Babu, former Vice President of BGMEA, said, “The $50 billion target is achievable if the US does not impose additional tariffs and electricity and gas prices remain stable through 2026.”
However, despite being the world’s eighth most populous country, Bangladesh still lags behind many nations in global export rankings. Experts note that policy gaps, limited cash incentives, and underutilization of human resources have slowed export growth compared to smaller countries that outperform Bangladesh in export revenue.
Dr. Rubana Haque, former President of BGMEA, told Biz Hour 24, “Whether Bangladesh can surpass $50 billion depends on effective diplomatic and economic strategies. US tariffs will reduce consumer demand, and competitors may capture a significant share of the market. Strong economic diplomacy is essential to sustain growth.”
