Bangladesh's trade deficit widened to $24.17 billion in FY25: Minister Muktadir

Commerce Minister Khandakar Abdul Muktadir today (23 June) told parliament that Bangladesh's trade deficit widened to $24.17 billion in the fiscal year 2024-25, as the increase in import expenditures outpaced growth in export earnings.

He came up with the disclosure while responding to a question from BNP lawmaker from reserved women seat Nilufar Chowdhury Moni.

The minister said the country earned $55.19 billion from exports during FY25, while import expenditure rose to $79.36 billion, resulting in a trade gap of $24.17 billion.

The figures show a reversal of the narrowing trend observed in the previous fiscal year, when the trade deficit stood at $21.50 billion, he said.

Export earnings increased from $51.11 billion in FY24 to $55.19 billion in FY25. However, import payments grew at a faster pace, rising from $72.62 billion to $79.36 billion during the same period.

The data indicates that Bangladesh's trade deficit has fluctuated considerably over the past five fiscal years, largely reflecting changes in global commodity prices, domestic demand and international trade conditions.

In FY21, the country's export earnings stood at $45.37 billion against import expenditure of $61.61 billion, leaving a trade deficit of $16.24 billion.

The deficit widened sharply to a record $28.14 billion in FY22 as imports surged to $89.11 billion, while exports reached $60.97 billion.

In FY23, export earnings declined to $53.93 billion and imports fell to $78.30 billion, reducing the trade gap to $27.18 billion.

The deficit narrowed further to $21.50 billion in FY24 as import expenditure dropped significantly to $72.62 billion, while exports amounted to $51.11 billion.

Despite the increase in export receipts in FY25, the faster growth in imports widened the trade imbalance once again, highlighting the continued pressure on the country's external sector.

According to the data, Bangladesh's exports have increased by nearly 22% over the past five years, from $45.37 billion in FY21 to $55.19 billion in FY25, while imports rose by almost 29% during the same period, from $61.61 billion to $79.36 billion.

The minister said Bangladesh's exports continue to be concentrated in a number of key international markets, with the United States, Germany, the United Kingdom, Spain, France, Poland, the Netherlands, Japan, Canada and India remaining the country's principal export destinations.

He said Bangladesh exports a wide range of products to these destinations, reflecting the country's growing industrial and manufacturing capacity beyond its traditional ready-made garments (RMG) sector.

According to Muktadir, knitwear and woven garments remain the leading export items in most of the major markets. Other significant export products include leather and leather goods, agricultural and agro-processed products, home textiles, jute and jute goods, cotton and cotton products, and engineering products.

He said, Bangladesh is also exporting footwear, excluding products classified under specific tariff headings, as well as jute yarn and twine, frozen and live fish, chemical products, hats and caps, shrimp, paper and paper products, plastic goods and tents.

The export basket has further expanded to include pharmaceutical products, dried and processed food items, knitted fabrics, electrical products, raw jute, wigs and human hair products, the minister added.