In the first quarter of the 2025–2026 fiscal year, import expenditures increased much more than exports, causing Bangladesh’s trade deficit to expand. As a result of the widening disparity, the nation’s current account balance is now negative, which raises questions about possible strain on the taka and foreign exchange reserves.
Between July and September, products worth $11.09 billion were exported, while $16.80 billion was imported, according to Bangladesh Bank’s most recent balance of payments report. This caused a trade deficit of $5.71 billion, which was 23% more than the $4.64 billion deficit during the same period last year.
The report also noted that the current account, which had been in surplus during the same quarter last year, has now slipped into a $480 million deficit. However, the overall balance of payments showed improvement, posting an $853 million surplus, compared to a $1.48 billion deficit in the previous year’s first quarter.
Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, said the surge in imports was mainly due to increased purchases of consumer goods ahead of Ramadan, which begins in February. “Letters of credit have been opened early to ensure sufficient supply of essential goods. As a result, imports have grown faster than exports, widening both the current account and trade deficits,” he explained.
He also noted that a portion of the rising imports includes production-related raw materials, which could later contribute positively to exports and domestic output.
Meanwhile, remittance inflows recorded strong growth, with expatriates sending $7.59 billion in July–September — a 15.9% rise from $6.54 billion a year earlier.
In contrast, while foreign direct investment (FDI) increased to $318 million from $114 million, foreign portfolio investment in the stock market turned negative, recording a $42 million outflow compared to a $5 million inflow in the same period last year.
Economists caution that sustained import growth without a matching export boost could strain the external sector, though steady remittance inflows and improved FDI provide some relief.
