World’s second-largest apparel exporter Bangladesh plans to diversify its exports away from readymade garments to preserve its economic growth momentum, said AHM Mustafa Kamal, Finance Minister.

As per a Business of Fashion report, readymade garments currently account for more than 80 percent of the nation’s total exports, with the bulk of the shipments headed to either Europe or the US. The pandemic-induced global demand slump has already contributed to a slowdown in exports, which makes up about 15 percent of the economy. The government seeks to encourage exports of everything from electronics to jute.

Diversification of exports assumes urgency for the South Asian nation for reasons beyond the pandemic. Bangladesh, which is among the rare few economies to keep expanding in a world hit by recession, is set to jettison its least developed country status by 2024 — a classification that currently makes it eligible for the European Union’s “Everything but Arms” trade deal that grants duty-free, quota-free access for all exports, except arms and ammunition.