Commerce Minister Khandakar Abdul Muktadir has informed Parliament that Bangladesh’s trade deficit has increased by nearly US$8 billion over the past five fiscal years, rising from US$16.24 billion in FY2020-21 to US$24.16 billion in FY2024-25.
Responding to a question from ruling party lawmaker Jashim Uddin Ahmed in the Jatiya Sangsad on Monday, the minister attributed the widening trade gap largely to policy decisions made by previous administrations. However, he also pointed to several global factors that contributed to the situation, including the energy crisis, price shocks resulting from the Russia-Ukraine conflict, the shortage of US dollars and changing conditions in international markets.
According to the minister, increased spending on imports of fuel, food items and industrial raw materials, coupled with slower export growth, has significantly influenced the trade imbalance in recent years.
Official data presented in Parliament showed that the trade deficit rose sharply to US$28.13 billion in FY2021-22 from US$16.24 billion in FY2020-21. It then eased slightly to US$27.18 billion in FY2022-23 and further declined to US$21.50 billion in FY2023-24 before climbing again to US$24.16 billion in FY2024-25.
Bangladesh’s export earnings stood at US$45.36 billion in FY2020-21 and increased to US$55.19 billion in FY2024-25. During the same period, imports rose from US$61.60 billion to US$79.35 billion, contributing to the persistent trade deficit.
To address the issue, the government has adopted a range of initiatives aimed at strengthening exports and reducing dependence on a single sector. The minister noted that although Bangladesh exported goods to 202 countries and territories in FY2024-25, the ready-made garment sector still accounted for around 84 per cent of total export earnings.
To diversify export baskets, incentives similar to those offered to the garment industry are being extended to other sectors, including leather goods, jute products, agricultural commodities, pharmaceuticals, ICT services, light engineering products, frozen foods and plastic goods.
The minister also highlighted the “One District One Product” initiative, inspired by successful models in Japan and Thailand, under which 14 products have already been identified from the country’s 64 districts to promote regional export development.
In addition, Bangladesh is pursuing free trade agreements with countries such as Malaysia, Turkey and New Zealand. The third round of negotiations for a proposed free trade agreement with Singapore is scheduled to take place in Dhaka in August 2026 as part of efforts to expand market access and strengthen export competitiveness.
