Trade deficit reaches $7.5 billion due to increased imports during Ramadan

Staff Report: PNN

The import of essential goods, fuel, and fertilizers around Ramadan has significantly increased the country’s trade deficit in the first four months of the current fiscal year. According to Bangladesh Bank’s latest Balance of Payments (BOP) data, the trade deficit reached $7.5 billion from July to October 2025–26, an increase of nearly $2 billion from the previous month. In September, the deficit was $5.7 billion.

Total imports during these four months amounted to $22.11 billion, 5.5% higher than the same period last year. Exports, by contrast, stood at $14.5 billion, resulting in a widened trade deficit.

A senior official at Bangladesh Bank said the main reason for the import surge was increased import of fuel, fertilizers, and essential food items in anticipation of Ramadan. Large Letters of Credit (LCs) were issued in September and October due to high demand.

Statistics show year-on-year increases in imports: soybean oil up 36%, sugar 11%, lentils 87%, chickpeas 27%, peas 294%, and dates 231%. Fuel and fertilizer imports rose 50% and 25%, respectively.

The current account has also been affected. From July–October, the deficit was $749 million, compared to $640 million in the same period last year. Analysts note that despite strong remittance inflows, the high import spending has kept the current account in deficit. Remittances reached $10.1 billion in the first four months of this fiscal year, up from $8.9 billion last year. Although remittances rose over $1 billion, the increased trade deficit is creating overall economic pressure.