The impact of high global energy prices has put pressure on Bangladesh’s external transactions, with fuel import costs more than doubling. Meanwhile, export earnings are growing slower than expected due to stagnation in the industrial sector and energy shortages. As a result, the country’s trade deficit widened to $7.47 billion in the first three months (July–September) of the 2026–27 fiscal year.

During this period, import expenditure increased by 15.10 per cent, while export earnings grew by only 7 per cent. The widening gap between imports and exports is putting increasing pressure on the country’s external transactions.

Despite remittance growth of more than 13 per cent, the current account recorded a deficit of $1.33 billion. The overall balance of payments also posted a deficit of $1.16 billion.

According to Bangladesh Bank data, the country spent $19.33 billion on merchandise imports during the first three months of the current fiscal year. Merchandise exports generated $8.38 billion in earnings during the same period.

Fuel oil and petroleum products accounted for the largest share of the increase in import expenditure. From July to September, Bangladesh spent $4.22 billion on importing crude oil, petroleum products and lubricants, compared with $2.05 billion during the same period last fiscal year. This represents a 105 per cent year-on-year increase in fuel import costs.

Industry insiders said the additional expenditure on fuel imports was putting pressure on the country’s dollar market and external transactions. At the same time, slower-than-expected growth in major export sectors meant that export earnings were insufficient to offset rising import costs. High global prices of fuel and consumer goods have further complicated the situation.

Despite remittance growth of more than 13 per cent, the current account has failed to avoid a deficit. The account recorded a surplus of $590 million in the first two months (July–August) of the fiscal year. However, by the end of September, it had turned into a deficit of $1.33 billion.

This indicates that the amount of foreign currency spent on imports exceeds the inflow generated through exports and remittances.

Bangladesh Bank officials said the current account deficit had emerged mainly because of higher import expenditure. Although export earnings and remittances have increased, the growth has not been sufficient to keep pace with import costs.

Despite the widening current account deficit, the financial account showed some improvement. After recording a deficit in the first two months of the fiscal year, it returned to a surplus of $320 million by the end of September. The improvement was mainly driven by a modest increase in foreign direct investment (FDI), foreign grants and loan inflows.

However, the financial account surplus remained significantly lower than that of the same period last fiscal year. During the first three months (July–September) of the previous fiscal year, the account recorded a surplus of $1.79 billion. Foreign loans amounted to $1 billion during that period, while inflows from foreign loans in the corresponding period of the current fiscal year were only half that amount.

Although the trade deficit had been widening, the country had not experienced a major crisis in overall external transactions until recently. However, the situation has deteriorated since the beginning of the current fiscal year due to a decline in foreign financing.

According to Bangladesh Bank data, the overall balance of payments recorded a deficit of $694 million during the first two months of the fiscal year. By the end of September, the deficit had widened to $1.16 billion. Despite strong remittance growth, the inflows were insufficient to offset the overall deficit, creating renewed pressure on the country’s external sector.

Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said the trade deficit was increasing due to higher fuel import costs. He noted that the price of fuel procured from the international market had doubled compared with previous levels, putting significant pressure on overall expenditure.

However, he expressed optimism that the situation would not persist for long. According to him, although the economy is facing temporary pressure, conditions are expected to return to normal.