Dhaka: Commerce Minister Khandakar Abdul Muktadir today informed the Jatiya Sangsad that the country’s trade deficit has increased by nearly US$ 8 billion over the last five fiscal years, reaching US$ 24.16 billion in FY 2024-2025 from US$ 16.24 billion in FY 2020-2021 due to policies adopted by previous governments.
According to Bangladesh Sangbad Sangstha, the commerce minister attributed the widening trade deficit to factors such as the global energy crisis, price increases due to the Russia-Ukraine war, the dollar crisis, and international market conditions. These elements have significantly impacted the trade balance, particularly through high import costs for energy, food, industrial raw materials, and sluggish export growth.
The statistics presented by Muktadir show that Bangladesh’s trade deficit stood at US$ 16.24 billion in FY2020-21, rose sharply to US$ 28.13 billion in FY2021-22, decreased slightly to US$ 27.18 billion in FY2022-23, dropped further to US$ 21.50 billion in FY2023-24, before increasing again to US$ 24.16 billion in FY2024-25.
In terms of export volume, Bangladesh exported goods worth US$ 45.36 billion in FY2020-2021, which increased to US$ 60.97 billion in FY2021-2022, then decreased to US$ 53.92 billion in FY2022-2023, US$ 51.11 billion in FY2023-2024, and rose again to US$ 55.19 billion in FY2024-2025. Meanwhile, the import volume was US$ 61.60 billion in FY2020-2021, US$ 89.10 billion in FY2021-2022, US$ 78.29 billion in FY2022-2023, US$ 72.61 billion in FY2023-2024, and US$ 79.35 billion in FY2024-2025.
To address the trade deficit, the government has outlined measures to enhance export performance. Muktadir noted that while Bangladesh exported goods to 202 countries and territories during FY2024-25, the ready-made garments sector accounted for about 84 percent of total export earnings. To mitigate dependence on a single export item, the government has initiated incentives similar to those in the RMG sector for other promising export sectors.
The government has also extended bond facilities against bank guarantees to partial export-oriented companies in sectors including leather and leather goods, jute and jute products, agricultural products, pharmaceuticals, ICT and software services, light engineering products, frozen foods and fish, and plastic products. Additionally, the ‘One District One Product’ programme has been launched to diversify exports and enhance region-based activities. Under this program, 14 products have been identified from 64 districts.
Muktadir further highlighted ongoing efforts to sign free trade agreements with countries such as Malaysia, Turkey, and New Zealand. He announced that the third round of negotiations between Bangladesh and Singapore is scheduled to be held in Dhaka in August 2026 to finalize an FTA between the two nations.