Prolonged war in MidEast affects exports, remittances Commerce minister
Ongoing political instability and military tensions in the Middle East have started to affect Bangladesh’s export trade, raising concerns that a prolonged crisis could also put significant pressure on the country’s vital remittance inflows.
The turmoil has already contributed to rising fuel prices, increased import costs, and higher shipping and insurance expenses.
Commerce Minister Khandaker Abdul Muktadir made the remarks during a question-and-answer session in Parliament on Monday. The session was chaired by Deputy Speaker Kaiser Kamal.
Responding to a query from ruling party MP Shamsur Rahman Shimul, the minister warned that ongoing tensions involving Iran, Israel, and the United States could have far-reaching implications for the global economy and trade, with Bangladesh unlikely to remain insulated.
The minister said Middle East remains one of Bangladesh’s most significant trading partners, importing garments, pharmaceuticals, frozen foods and leather goods into markets such as the UAE, Saudi Arabia, Qatar and Oman.
He added that the instability has already driven up fuel prices, leading to higher import costs as well as increased shipping and insurance expenses.
“This is creating challenges such as reduced exports to Middle Eastern markets and rising commodity prices,” the minister said.
To mitigate the impact, the government is working to reduce logistics costs and expand exports to countries less affected by the conflict.
In response to a separate question from MP SM Jahangir Hossain, the minister highlighted Bangladesh’s trade imbalance within the South Asian region.
He stated that Bangladesh runs trade deficits with all SAARC countries except Nepal, Sri Lanka, and the Maldives.
According to data from Bangladesh Bank for the fiscal year 2024-25, Trade with India showed the largest imbalance, with exports totalling $1.76 billion against imports of $9.62 billion, producing a deficit of $7.86 billion.
Bangladesh’s trade with Afghanistan recorded exports of $11.09 million against imports of $21.80 million, leaving a deficit of $10.71 million.
Exports to Bhutan stood at $14.33 million, compared to imports of $44.10 million, resulting in a deficit of $29.77 million.
Bangladesh also posted a trade deficit with Pakistan, with exports of $74 million against imports of $755.30 million, leaving a shortfall of $681.30 million.
By contrast, Bangladesh recorded surpluses with several SAARC partners. Exports to Nepal reached $35.40 million, while imports stood at $5.50 million, yielding a surplus of $29.90 million.
Trade with Sri Lanka was also in Bangladesh’s favour, with exports of $82.85 million against imports of $76.60 million, producing a surplus of $6.25 million.
Similarly, exports to the Maldives amounted to $6.35 million, compared to imports of $3.50 million, leaving a surplus of $2.85 million.
In response to a separate question from Abul Kalam MP, the commerce minister presented export earnings data for the past five fiscal years.
Export income stood at $45.37 billion in FY 2020-21, rising to $60.97 billion in FY 2021-22, before declining to $53.93 billion in FY 2022-23 and $51.11 billion in FY 2023-24. It rebounded to $55.19 billion in FY 2024-25.
Meanwhile, answering another question from independent MP Rumin Farhana, he said the government has taken steps to control inflation by eliminating duties on 110 products and reducing tariffs on 65 others.
