Salman F Rahman, the prime minister’s adviser on private industry and investment, disclosed that a significant $14 billion discrepancy in Bangladesh’s export data resulted from the Export Promotion Bureau’s (EPB) double counting of exported garment items produced in export processing zones (EPZs).

This announcement was made during a roundtable on digitalizing international trade in Bangladesh, organized by the International Chamber of Commerce-Bangladesh (ICCB) at the Sheraton Dhaka.

Rahman attributed the data mismatch to the lack of coordination between the EPB, the central bank, and the National Board of Revenue (NBR). The central bank recently addressed the anomalies, revising down the actual exports for the July-April period of fiscal 2023-24 by nearly $14 billion, adjusting the initial $47.47 billion figure published by the EPB to $33.67 billion.

The error stemmed from the EPB’s practice of counting sales from EPZ companies twice – once during shipment to local firms and again during final exportation from ports. Additionally, the EPB mistakenly included the cost of fabrics and accessories in garment orders under the cutting, making, and trimming (CMT) process instead of only considering the costs of cutting, sewing, and finishing.

Rahman emphasized the need for the EPB, the central bank, and the NBR to collaborate to rectify the issue. He also highlighted Bangladesh’s advancements in the digital economy and the potential introduction of QR code-based payment systems.

ICCB Vice-President AK Azad pointed out the inefficiencies in global trade transactions, citing World Trade Organization data that the average cross-border transaction requires around 36 documents and 240 paper copies. Azad called for a national committee to promote paperless transactions to enhance efficiency and reduce business costs.

ICCB member Kutubuddin Ahmed warned of the risks associated with digitalizing trade, recounting an incident where his office software was hacked, and a ransom was demanded. He stressed the importance of educating people about digital trade despite potential initial challenges.