BM Shoaib: Bangladesh is suffering from trade imbalance with many countries, meaning we import more from these countries than the volume of our export to these destinations. More import means we are losing more of our precious foreign currency in making payment for buying goods from these countries. This surely is not good for the economy.
There is no denying that for the healthy growth of the economy, we have to strike a balance between our export and import. In plain language, we should export more than we should import. Through export we earn more foreign currency but this hard-earned Forex gets drained if we spend it all on import. We have to strike a balance and such a balance is aimed at narrowing the trade gap with other countries. Though the gap in our case was huge about two decades ago, it is becoming narrower with some countries where our exports have improved significantly.
According to Bangladesh Bank, Bangladesh recorded a trade deficit of Tk.291 billion in November of 2023. Balance of Trade in Bangladesh averaged -43.36 BDT Billion from 1976 until 2023,
A positive trade balance signifies a trade surplus, while a negative value signifies a trade deficit. Another source says in 2022, Bangladesh’s trade deficit amounted to around 33.54 billion U.S. dollars.
In a bid to give more emphasis on export, in recent years, different export fairs were organized by the private sector. And the Export Promotion Bureau (EPB) organizes yearly Dhaka International Trade Fair (DITF) lasting for a month. DITF has been successful in attracting foreign buyers to many of our non-traditional products. Every year, Bangladesh receives export orders worth millions of dollars from such fairs for non-traditional items. This year’s fair was equally successful despite political disorder to attract some foreign buyers.
It is good news that besides organizing fairs at home, our entrepreneurs are venturing out from near to far-off countries to strike short term and long-term deals with overseas buyers. From East to West and North to South, our businessmen are busy exploring new export possibilities. They are organizing expositions of our products in those countries with the help of the Export Promotion Bureau (EPB) and our overseas missions.
At the same time, increasing the export volume of traditional items like Readymade Garments, Jute, Tea and Hide in new destinations is helping the country earn a substantial amount of foreign currency and thereby closing the trade gap even further. Side by side, we have to search for new export destinations in continents where we have not done proper exploration. This can be done in cooperation with local companies and various trade bodies. Our sea resources still remain underutilized but there is huge demand for sea fish in Asian and European markets.
It needs no emphasizing that we must ensure more investment in the industrial sector for the overall growth of the economy. At the same time, we shall need to increase our export volume to earn more foreign currency. To boost our exports, commercial banks and the central bank also need to change their policies from time to time.
An economy can only grow if all the vital sectors start working concertedly to lessen our dependence on import giving more stress on export.
On the question of import, we have noticed there is no regulation from the authorities on what we should allow traders to import and what they should not. As a result, we have seen a single piece of foreign apple selling for Tk.500. There are different types of imported soft drinks selling for Tk. 300 to 500 a bottle or boxes of chocolates selling at exorbitant prices. Now, the question is who buys these expensive foreign products?
Undoubtedly, the super-rich people of the country. But the irony is these same super rich people frequently go abroad and buy these products from super shops there. No middle-class family can afford to buy one single apple for Tk.500. So, why import these expensive products while spending our valuable foreign currency? If our middle and lower middle-class people cannot afford to buy products, why must we import them?
We strongly feel there should be a regulatory body to determine what we should import and what we should not.
The writer is a businessman and social worker