[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Exports hit record high, surpass previous fiscal year in just 11 months

This figure already surpassed the total export earnings of $44.46 billion for the entire 2023-24 fiscal year.

en.prothomalo.com

Exports hit record high, surpass previous fiscal year in just 11 months
UNB
Published: 03 Jun 2025, 22: 30

Chattogram port Prothom Alo file photo

Bangladesh has achieved a remarkable milestone in its exporting goods, recording US$44.94 billion during the first 11 months (July-May) of the current fiscal year.

This figure already surpassed the total export earnings of $44.46 billion for the entire 2023-24 fiscal year, signalling the impressive performance of industries.

Overall, export income has seen a significant 10 per cent growth compared to the same period last year, when earnings stood at $40.85 billion, according to export data released by the Export Promotion Bureau (EPB) on Tuesday.

As per the EPB data, export earnings in May alone reached $4.73 billion, an increase of 11.45 per cent compared to $4.25 billion in May of the previous year.

The ready-made garment (RMG) sector, which is the largest contributor to Bangladesh's exports, demonstrated a strong growth of 10.25 per cent. Earnings from this sector amounted to $36.55 billion, up from $33.17 billion in the preceding year.

Within RMG, woven garment exports increased by 9.30 per cent to $16.94 billion, while knitwear exports surged by 10.98 per cent to $19.62 billion.

Several other sectors also contributed significantly to the record export figures.

Agricultural products: Earnings grew by 3.17 per cent to $928 million.

Frozen and live fish: Saw a substantial increase of 17.53 per cent, reaching $410 million.

Leather and leather products: Registered a 12.55 per cent growth, generating $1 billion in income.

Leather footwear: Experienced a remarkable 28.96 per cent rise, with earnings of $620 million.

Non-leather footwear: Grew by 30.25 per cent to $494 million.

Plastic products: Increased by 18.62 per cent to $270 million.

Pharmaceuticals: Saw a 5.25 per cent growth, with earnings of $197 million.

Home textiles: Increased by 4.78 per cent to $825 million.

Areas of decline

Despite the overall positive trend, some sectors experienced a decline:

Jute and jute products: Saw a 4.77 per cent decrease in income, falling to $769 million.

Other leather products: Declined by 3.39 per cent, with earnings of $317 million.

The record export performance in the first 11 months positions Bangladesh strongly to exceed its export targets for the current fiscal year, reinforcing its position in the global trade arena.​

 

[Saif]

Trade deficit narrows 2.6% in July-April

The country’s trade deficit narrowed by 2.60 percent in the first ten months of the current fiscal year compared to the same period a year ago, thanks to a rise in export earnings coupled with subdued imports..During the July-April period of fiscal year (FY) 2024-25, the trade gap was $18.

www.thedailystar.net

Trade deficit narrows 2.6% in July-April
Bangladesh trade deficit July-August FY25

While the substantial downward revision in the export figures is disappointing, it paints a much more realistic picture about the challenging global environment for exports faced by Bangladesh. PHOTO: RAJIB RAIHAN/FILE

The country's trade deficit narrowed by 2.60 percent in the first ten months of the current fiscal year compared to the same period a year ago, thanks to a rise in export earnings coupled with subdued imports.

During the July-April period of fiscal year (FY) 2024-25, the trade gap was $18.22 billion, down from $18.70 billion in the corresponding period of FY24, according to the latest data from the central bank.

Export earnings increased by 8.6 percent year-on-year to $36.56 billion in the first ten months of this fiscal year.

On the other hand, import costs rose only 4.6 percent year-on-year to $54.79 billion from the same period a year ago, central bank data showed.

Industry insiders said that slower import growth compared to export growth helped narrow the trade gap slightly.

They said that slow import growth is not a positive sign for the economy in the long run, as it indicates a sluggish business environment, a slowing economy, and lacklustre investments.

During July to April of the current fiscal year, the settlement of letters of credit (LCs) for capital machinery fell by 25.56 percent to $1.70 billion, indicating a dull business environment.

Another major development in the balance of payments is the country's current account balance. The deficit in the current account balance narrowed in the first ten months of this fiscal year.

From July to April of FY25, the current account balance deficit stood at $1.39 billion, down from $6.02 billion in the same period of the last fiscal year, BB data showed.

Bankers credited the growing remittance trend for reducing the current account balance deficit.

A significant development is that the financial account is in positive territory.

The financial account, a component of the balance of payments, records claims on or liabilities to non-residents concerning financial assets. It includes components such as direct investment, portfolio investment, and reserve assets, broken down by sector.

The financial account in the first ten months of FY25 stood at $1.96 billion, down from $2.25 billion in the same period of the last fiscal year, data showed.

The balance of payments (BoP) data show that foreign direct investment (FDI) dropped by 29 percent year-on-year.

The country received $910 million in the first ten months of FY25, down from $1.27 billion in the same period last year.​

 

[Saif]

Unblocking payments, shareholder dividends ignites investment zeal

A faster coordinated action by the interim government resolving several longstanding issues of payment obligations and shareholder dividends with three prominent multinational corporations in order to ease foreign-investment facilities in Bangladesh regenerates investment vibes. Industry s

thefinancialexpress.com.bd

Unblocking payments, shareholder dividends ignites investment zeal
Longstanding problems of three multinational kingpins resolved with rapid coordinated actions, Chevron, MetLife, Youngone happy with hurdles removed
Ismail Hossain
Published :
Jun 05, 2025 01:51
Updated :
Jun 05, 2025 01:51

A faster coordinated action by the interim government resolving several longstanding issues of payment obligations and shareholder dividends with three prominent multinational corporations in order to ease foreign-investment facilities in Bangladesh regenerates investment vibes.

Industry stakeholders assert that such decisive actions will help eliminate uncertainties, enhance investor confidence, and reinforce Bangladesh's credibility as a competitive investment destination.

With support from the Bangladesh Investment Development Authority (BIDA), the Ministry of Finance and the Insurance Development and Regulatory Authority (IDRA), the government addressed long-pending concerns involving Youngone Corporation, Chevron Bangladesh, and MetLife.

These issues, exacerbated by previous foreign-exchange constraints, had remained unresolved for several years like a bone stuck in one's throat.

The Chief Adviser's Office played a direct role in facilitating these resolutions. Special Envoy Lutfey Siddiqi was instrumental in engaging with stakeholders, coordinating across ministries, and ensuring that the necessary policy and regulatory approvals were secured.

In one major development, the state-owned Petrobangla has settled outstanding dues to Chevron Bangladesh totalling over US$190 million. The US energy major confirmed that payment was settled last April.

Meanwhile, South Korea's Youngone Corporation executed a long-awaited deed of land transfer within the Korean Export Processing Zone (KEPZ) in Chattogram.

This milestone, which overcomes significant administrative delays, is expected to unlock up to US$500 million in potential investment in textiles, logistics, and technology infrastructures.

In another breakthrough, MetLife-the oldest foreign investor in Bangladesh-has secured regulatory approval for repatriating long-overdue shareholder dividends.

Having operated in Bangladesh since 1952, MetLife, renamed from American Life Insurance Company (ALICO), is the largest investor in government bonds, the top taxpayer in the life-insurance sector, and consistently the leading life insurer in terms of claims settlement.

Despite this stature in the corporate world, the stakeholders say, "prolonged bureaucratic hurdles around dividend repatriation had adversely impacted Bangladesh's reputation as a business-friendly environment".

These recent actions by the government align with the Foreign Private Investment (Promotion and Protection) Act 1980, which guarantees protection against expropriation and ensures the repatriation of capital and profits.

Officials emphasise that the Act remains a vital assurance mechanism for foreign investors.

According to stakeholders familiar with the developments, the resolution of legacy disputes and improvements in administrative efficiency signal a renewed policy focus on fostering an environment conducive to investment.

The business community-both current multinationals and prospective investors-are observing these changes with keen interest.

Ala Ahmad, Chief Executive Officer of MetLife Bangladesh, says, "We welcome the government's proactive efforts to streamline key processes for the investors. As a long-term partner to Bangladesh, MetLife sees this as a strong signal of the country's commitment to an investor-friendly environment."

The Bangladesh Investment Development Authority, the national investment-promotion agency, reported receiving investment proposals amounting to Tk 338.06 billion in the first quarter of 2025, including Tk 161.69 billion from foreign and joint-venture investors, according to official figures.

Ashik Chowdhury, Executive Chairman of BIDA and BEZA both, has said Bangladesh's ambition is clear regarding obtaining foreign investment. "We want to become a globally competitive investment destination and the only way we can achieve our ambition is by converting our existing investors into ambassadors."

He said the government was laying the groundwork for a future where international investors see not just potential, but performance.

Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser, has said attracting foreign investment is essential not just for growth but also for building the fiscal and productive backbone of the economy.

"This requires a consistent approach across departmental silos, in both our policies and actions, and nurturing an environment that facilitates high-quality investments," he added.​