Bangladesh’s trade deficit has increased significantly as import expenditure continues to grow much faster than export earnings, creating renewed pressure on the country’s external sector. Economists warn that if this trend persists, it could weaken the value of the taka and put further strain on foreign exchange reserves.
According to the latest report by Bangladesh Bank, the country exported goods worth 11.087 billion US dollars during the first quarter (July–September) of the 2025–26 fiscal year. During the same period, imports amounted to 16.80 billion US dollars. As a result, the trade deficit for the three-month period stood at 5.712 billion US dollars, compared to 4.64 billion dollars in the corresponding period of the previous fiscal year. This represents an increase of nearly 23 per cent year-on-year.
Economists note that Bangladesh’s economy remains heavily dependent on imports. Industrial production relies largely on imported raw materials, machinery and energy. At the same time, export earnings have not grown at the expected pace due to global economic slowdown, intense competition and the higher value of the US dollar, which has also increased the cost of imports.
Experts emphasise that immediate and effective measures are needed to reduce the trade deficit. They suggest diversifying the export base beyond the ready-made garment sector by promoting IT services, pharmaceuticals, agricultural products and light engineering goods. Controlling unnecessary and luxury imports is also considered essential. In addition, strengthening banking channels to boost remittance inflows, encouraging foreign direct investment and increasing domestic production are seen as key policy priorities.
Bangladesh Bank data also show that the current account balance turned into a deficit of 48 million dollars in the first quarter of the current fiscal year, whereas it recorded a surplus in the same period last year. However, the overall balance of payments improved, shifting from a deficit of 1.48 billion dollars last year to a surplus of 853 million dollars this year.
During July–September, remittance inflows reached 7.59 billion dollars, marking a 15.9 per cent increase year-on-year. Foreign direct investment also rose significantly to 318 million dollars, although portfolio investment in the stock market remained negative.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said that imports of consumer goods have increased ahead of Ramadan, as businesses opened a large number of letters of credit to ensure adequate supply, temporarily widening both the trade and current account deficits.
GLIVE/TSN