[🇧🇩] 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.​

 

[Saif]

Counting the invisible: Why recognising women’s unpaid work is a game-changer for Bangladesh

In a historic policy shift, Bangladesh’s interim government has announced that from the 2025–26 fiscal year onward, women's unpaid care and domestic work will be officially counted in the country’s Gross Domestic Product (GDP). This long-overdue decision marks a watershed moment&m

thefinancialexpress.com.bd

Counting the invisible: Why recognising women’s unpaid work is a game-changer for Bangladesh

Farah Kabir
Published :
Jun 05, 2025 16:18
Updated :
Jun 05, 2025 16:19

In a historic policy shift, Bangladesh’s interim government has announced that from the 2025–26 fiscal year onward, women's unpaid care and domestic work will be officially counted in the country’s Gross Domestic Product (GDP). This long-overdue decision marks a watershed moment—not just in economic accounting, but in the nation’s recognition of gender justice. It is also a landmark victory for ActionAid Bangladesh (AAB), which has spent over a decade advocating for the acknowledgment of this invisible labour.

Across Bangladesh, millions of women rise each day to shoulder the immense burden of household and caregiving work—cooking, cleaning, caring for children and the elderly—all without pay, recognition, or relief. According to the 2021 Time Use Survey by the Bangladesh Bureau of Statistics, women perform nearly 6.8 hours of unpaid care work daily, compared to just 1.2 hours by men. This glaring disparity translates into 5.6 additional hours of unrecognised labour for women every single day.

What if this labour had a price tag?

A 2014 study by the Centre for Policy Dialogue (CPD) estimated that if women’s unpaid domestic and care work were monetised, it would account for a staggering 76.8% of Bangladesh’s GDP. Yet, until now, this critical contribution went unrecorded in economic planning and public policy—rendering women’s labour effectively invisible.

Since 2013, ActionAid Bangladesh has been working to change that. With a mission to recognise, reduce, and redistribute unpaid care work, AAB has combined grassroots mobilisation, research, and high-level advocacy to shift public narratives and policy. This movement has never been just about numbers—it’s about dignity, justice, and rewriting the rules of who counts and what counts in the economy.

At the heart of this movement lies a simple but powerful tool: the Time Diary. Women across Bangladesh were encouraged to log their daily activities over 24 hours. What emerged was a clear, evidence-based picture of their daily workload—and how it constrained their ability to earn, learn, or simply rest. For many women, the Time Diary provided a language to explain why they felt exhausted, undervalued, or stuck. It became both a personal empowerment tool and a political instrument.

ActionAid used this data to spark difficult conversations within households, especially through “spouse forums.” When men were confronted with the real weight of their partners’ daily labour, many began to reflect, and in some cases, adjust their roles. These were small but meaningful steps toward breaking deeply embedded patriarchal norms.

Community engagement was key. From rural villages to urban neighbourhoods, ActionAid Bangladesh mobilised women’s groups, organised awareness campaigns, and even launched public events like the “Men’s Cooking Festival,” where men were invited to take on household chores in front of their communities. It wasn’t just symbolic; it was revolutionary. Films, radio programmes, and local storytelling brought these efforts to life, making unpaid care work visible—and shared.

The COVID-19 pandemic magnified this crisis. With schools, offices, and support systems shut down, homes became the centre of all activity. Women juggled work, childcare, and household tasks, often without help or recognition. AAB’s rapid study showed that unpaid domestic work increased by 128%, even among employed women. Yet care work remained largely absent from pandemic response strategies and public budgets.

But ActionAid didn’t stop at the community level. Women’s voices were elevated to the national stage—presented directly to policymakers, parliamentarians, and media leaders. Armed with personal stories and hard data, women articulated the cost of care, not just in hours or energy, but in lost opportunities and systemic inequality. These stories resonated. Slowly but surely, the issue of unpaid care work began shifting from a “private” concern to a public policy priority.

The media became a powerful ally. Through journalist training programmes, photo exhibitions, and storytelling competitions, AAB ensured that unpaid care work entered the national narrative. Youth debates, film screenings, and powerful imagery—such as the “Different Images of Men” campaign—challenged stereotypes and inspired cultural change.

This multi-pronged advocacy led to a crucial breakthrough: the formation of a multi-stakeholder Steering Committee and growing alignment with networks like the Gender Working Group (GWG), One Billion Rising (OBR), and the Asian Farmers’ Association (AFA). A collective voice was formed, amplifying demands for care-sensitive policies, services, and budgets.

Now, with the government’s announcement to include unpaid care work in GDP, a long-held dream has been realised. It’s a validation of years of activism and a signal that Bangladesh is ready to rewrite its economic story.

But this is just the beginning. Recognition in GDP is an important milestone, but not the final goal. Real transformation will require integrated action: gender-responsive budgeting, investment in care infrastructure like childcare and eldercare centres, expanded healthcare access, and public campaigns to shift cultural norms. Men must be engaged as allies, and women must be at the centre of designing policies that affect their lives.

ActionAid Bangladesh remains committed to this journey—not just to reduce the hours women spend on care work, but to restore value and dignity to their contributions. By counting care, we challenge what we value. And when we value care, we open the door to a more inclusive, equitable, and humane society.

In recognising unpaid care work, Bangladesh has taken a bold, progressive step forward. The future, now, must be built on that foundation—with policies, partnerships, and public will that ensure no woman’s labour goes unseen, and no woman is left behind.

- Farah Kabir is the Country Director of ActionAid Bangladesh​

 

[Saif]

Exports and remittance drive improvement in foreign transaction balance

Strong growth in exports and remittances has led to an improvement in balance of payments (BoP), a key indicator of the country’s economy. According to the latest report from Bangladesh Bank, the BoP deficit for the first 10 months of the 2024-25 fiscal, that is, July through April, has...

en.prothomalo.com

Exports and remittance drive improvement in foreign transaction balance
Staff Correspondent Dhaka
Published: 08 Jun 2025, 18: 32

Bangladesh Bank Prothom Alo

Strong growth in exports and remittances has led to an improvement in balance of payments (BoP), a key indicator of the country’s economy.

According to the latest report from Bangladesh Bank, the BoP deficit for the first 10 months of the 2024-25 fiscal, that is, July through April, has decreased to USD 660 million.

Just a month earlier, the deficit stood at USD 1.07 billion, while at the end of April in the previous fiscal year, the deficit was USD 5.57 billion. In fact, the deficit was USD 8.22 billion in the 2022-23 fiscal year.

Exports have been showing positive growth, and remittances hit record levels in May as well, following April. Additionally, last month the exchange rate of the dollar was allowed to float, and due to healthy supply, it has remained stable

In the final two years of the ousted Awami League government, the BoP deficit had reached a critical level, putting significant pressure on the country’s foreign exchange reserves. Following the political transition, the interim government undertook several initiatives which gradually brought down the BoP deficit. As a result, the decline in reserves came to a halt.

According to the central bank's records, as of 29 May, the country’s foreign exchange reserves were at USD 25.80 billion. At the same time last year, the reserves stood at USD 24.22 billion.

On the other hand, under IMF’s BPM6 (Balance of Payments Manual, 6th edition) methodology, foreign exchange reserves on 29 May were USD 20.57 billion. A year earlier, under the same BPM6 method, reserves were USD 18.72 billion. This means that usable reserves have increased by USD1.85 billion over the past year.

According to Bangladesh Bank’s report, goods worth USD 36.57 billion were exported in the first 10 months of the current fiscal year. This is an 8.61 per cent increase compared to the corresponding period in the previous fiscal year.

Over 90 per cent of the exports and imports take place though Chittagong Port Prothom Alo

Meanwhile, remittance inflows between July and April of the current fiscal year amounted to USD 24.54 billion, which is 28 per cent higher than the same period last year.

According to the central bank records, the 2023–24 fiscal ended with a significant current account deficit of USD 6.61 billion. In the previous fiscal year (2022-23), the deficit was even larger, USD 11.63 billion. However, in the first 10 months (July-April) of the 2024-25 fiscal, the current account deficit has narrowed to USD 1.39 billion.

The current account typically reflects the country’s regular foreign transactions. It includes imports, exports, and other recurring income and expenditures. A surplus here indicates that the country does not need to borrow to finance its day-to-day external transactions. Conversely, a deficit requires borrowing to cover the gap. Despite a slight increase in imports during the first 10 months of the current fiscal year, robust growth in exports and remittance inflows has helped reduce the current account deficit.

Migrants workers remitted USD 54 billion on the first 10 months of the current fiscal Collected

Meanwhile, at the end of the 2023-24 fiscal, the financial account posted a surplus of USD 4.54 billion, down from USD 6.89 billion in the previous year. However, the 2024-25 fiscal began with a financial account deficit, though by the end of the first 10 months, it had returned to a surplus of USD 1.96 billion.

The financial account measures changes in the ownership of the country's international assets. Typically, a deficit in this account puts pressure on foreign exchange reserves and the exchange rate. Due to a severe dollar shortage, a financial account deficit emerged for the first time in a decade and a half at the beginning of the 2022-23 fiscal.

Economists and officials at Bangladesh Bank note that exports have been showing positive growth, and remittances hit record levels in May as well, following April. Additionally, last month the exchange rate of the dollar was allowed to float, and due to healthy supply, it has remained stable.​