Bangladesh's import bill is growing faster than its export earnings, widening the current account deficit and putting renewed pressure on the country's external finances.
According to data released by Bangladesh Bank yesterday, the gap between money flowing out of the country and money coming in widened to $749 million during July-October of fiscal year 2025-26 (FY26).
The gap widened 17 percent from a $640 million shortfall recorded in the same period a year earlier.
Economists track this gap through what is formally known as the current account, which records a country's earnings and spending from trade in goods and services, income from overseas investments, remittances, and foreign aid. When payments for imports, investment income, or aid exceed receipts from exports and remittances, the account slips into deficit.
Speaking on condition of anonymity, a senior central bank official said import payments have been rising for several reasons, including higher demand ahead of Ramadan, pushing the external balance further into the red.
During the July–October period, import payments rose 5.5 percent year-on-year to $22.11 billion, compared with $20.95 billion in the same period last year.
In contrast, export earnings grew by just 1.8 percent to $14.54 billion, central bank data showed.
As a result, the gap between imports and exports, known as the trade deficit, widened to $7.57 billion in the first four months of FY26, up from $6.68 billion a year earlier.
Industry insiders warned that imports may climb further after the upcoming election, which could put additional strain on foreign currency balances.
They stressed the need to boost export earnings and remittance inflows to offset the rising import bill.
There was, however, some relief from financial inflows. Another key part of the balance of payments – the financial account, which tracks money coming in through foreign investment, loans, aid, and other financial transactions – returned to surplus.
In the July–October period, the financial account recorded a surplus of $2.17 billion, reversing a $499 million deficit in the same period last year. During July-September alone, it had posted a $1.66 billion deficit, indicating a sharp turnaround later in the quarter.
Net foreign direct investment also improved, rising to $445 million from $260 million a year earlier, according to the balance of payments data.
Overall, Bangladesh's balance of payments – which combines trade, income, and financial flows – recorded a surplus of $1.08 billion during the four-month period, compared with a $2.19 billion deficit in the same period last year.
At the end of October, the country's gross official foreign exchange reserves, measured under the IMF's BPM6 standard, stood at $27.57 billion, up from $19.83 billion a year earlier, Bangladesh Bank data showed.
