Bangladesh's trade deficit with its seven neighbouring countries narrowed by more than 15 per cent to $1.70 billion during the October-December quarter of this fiscal year, according to the Bangladesh Bank data.
This reflects a decline in imports from major regional trading partners - India and Pakistan.
The deficit was $2.65 billion in the corresponding period a year earlier, according to the trade data reviewed by this scribe.
The improvement was mainly driven by a contraction in imports from India and Pakistan - Bangladesh's two largest trading partners in the region.
Economists say slower import demand and tighter spending on foreign goods may have contributed to the trend.
The seven neighbouring countries considered in the regional trade analysis are India, Pakistan, Sri Lanka, Nepal, Afghanistan, Myanmar, and Bhutan.
India remained Bangladesh's largest trading partner in the region.
Imports from India stood at $2.044 billion during October-December 2025, marking a decline of 14.6 per cent compared with the same period in 2024.
Imports from Pakistan also registered a decline during the quarter.
Bangladesh imported goods worth $166.7 million from Pakistan during the period, down by 13.5 per cent from the corresponding quarter of the previous year.
Among the regional countries, imports from Afghanistan were the only exception, increasing by $8.3 million during the quarter under review.
Bangladesh's exports to neighbouring countries also witnessed a decline during the period, indicating weaker overall regional trade activity. Exports to India, the country's largest export destination within the region, dropped by 10 per cent to nearly $450 million during October-December, compared with nearly $503 million in the same period a year earlier.
Exports to Pakistan also declined to $17.6 million during the quarter from $19.6 million in the corresponding period of 2024.
Sri Lanka remained Bangladesh's third-largest trading partner in the region, with exports to the island nation amounting to $17.6 million during the quarter.
In contrast, exports to Nepal recorded a sharp increase, rising to $11.0 million during the October-December period from $4.7 million in the same quarter of the previous year.
jasimharoon@yahoo.com
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