Bangladesh has a record trade deficit as imports exceed exports and prices of all types of products, including energy, are rising in the global market. At the end of the 2021-22 fiscal year, the trade deficit stood at 3,325 crore dollars (over 3 lakh 14 thousand crore rupees), the highest in the country’s history. At the same time, the current account deficit from foreign transactions also exceeded $18.5 billion.
This information has emerged in the updated information published by Bangladesh Bank on Monday on the balance of the foreign transaction current account (Balance of Payments). Industry stakeholders say a large trade deficit has been created due to the increase in imports at an abnormal pace. However, in order to keep the economy of the country normal, it is necessary to increase the export dues by controlling imports. If not, the economy will be in crisis.
According to Central Bank data, Bangladesh’s goods trade deficit is $3,324,900,000 from July to June of the recently concluded 2021-22 fiscal year. According to the current exchange rate (Tk 94.70 per dollar), the amount in local currency is more than Tk 3 lakh 14 thousand 868 crores. The trade deficit in the fiscal year 2020-21 was $2,377 million.
According to statistics, exports increased by 33.45 percent from July to June of the previous fiscal year. By contrast, imports rose by 35.95 percent. During the period under review, the country earned $4 thousand 925 million from exports. In this period, 8 thousand 250 million dollars was spent on importing products. If export revenue is excluded from import expenditure, the trade deficit is $3 thousand 325 million.
At the same time, the trade deficit of the services sector also widened. In the past fiscal year, Bangladesh earned $9.98 billion in the service sector. On the other hand, the country has spent $1,385 million in the service sector. The service sector deficit is $387 million. The deficit was $302 million in the corresponding period of the prior fiscal year.
Bangladesh has a large current account deficit. In the fiscal year 2021-22, the amount of this deficit (negative) is 1 thousand 869 billion USD 70 million. In the same period last fiscal year, the deficit was only $457.8 million. The deficit in the total transaction (total balance sheet) was $5.38 billion. Last fiscal year there was a surplus of 9.27 billion dollars. Foreign direct investment (FDI) in the country has increased. Bangladesh received an FDI of $338.7 million in the July-June period of the fiscal year 2020-21. In the past fiscal year, it has increased to $470 million and $80 million.
Net FDI is what remains of the total foreign direct investment in various sectors of Bangladesh, after deducting the profit of the investing company. Net foreign investment also increased 60.81 percent year-on-year to $218 million in the period under review. In the same period last year, the net foreign investment amounted to 135 million USD 50 million.