BD’s external trade gap rises due to high import costs for dev

Monirul Alam of DOT
Bangladesh’s external trade deficit widened due to higher cost of imports for various development projects including Padma bridge and nuclear power plant at Rooppur, analysts say.
According to Bangladesh Bank (BB) statistics, the trade deficit stood at USD 5.32 billion or around BDT 55,000 during July-October period. As result, the current account balance also stays at negative zone with a shortfall of USD 2 billion or BDT 16,600 crore at the same period.
Former Deputy Governor of Bangladesh bank, Khandker Ibrahim Khaled said such deficit normally attributed by higher spending of resources than external income that includes export of goods and services, wage earners remittances and income from the central bank’s investment abroad.
“International purchase for Padma bridge, rooppur nuclear power plant and other development projects together resulted to higher import spending. Therefore, the current flow of export income and remittance cannot cope up with the spending,” Khandker Ibrahim said.