Bangladesh faces a significant trade imbalance with SAARC countries, as import payments far exceed export earnings, according to the latest Bangladesh Bank report for the fiscal year 2023-24.
Total import payments to SAARC nations reached $9.76 billion, while exports to the region amounted to only $1.74 billion, making imports more than five times higher than exports. This highlights Bangladesh’s heavy reliance on its South Asian neighbors, especially India, which is the country’s largest trading partner in the region and its second-largest import source after China.
Imports from SAARC accounted for 15.44% of Bangladesh’s total imports of $63.22 billion in FY24, a slight increase from the previous year. However, exports to SAARC made up only 4.47% of Bangladesh’s total shipments of around $39 billion. Bangladesh bank recommended policy measures to reduce import dependency by increasing domestic production.
Although Bangladesh’s overall imports declined in FY24, exports also fell, indicating a downturn in trade with regional partners. Among SAARC countries, India dominated both imports and exports, contributing over 92% of Bangladesh’s imports from the region and 90% of its exports.
Pakistan was the second-largest source of imports within SAARC, with Bangladesh spending $627 million on goods, or 6.34% of its regional import payments. However, exports to Pakistan declined sharply by 25%, dropping to $62 million in FY24.
Bangladesh’s primary imports from SAARC nations included textiles, chemical products, mineral products, machinery, and base metals, while key exports comprised garments, vegetable fats and oils, rawhides, leather, and plastic products.
Bangladesh Bank urged authorities like the Export Promotion Bureau to take initiatives to boost exports through product diversification and address obstacles limiting trade with SAARC nations. Strengthening regional cooperation and addressing trade imbalances were deemed essential for sustainable economic growth.
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