Growing political instability and military tensions in the Middle East have started negatively impacting Bangladesh's export trade, and a prolonged crisis could also put significant pressure on vital remittance inflows.
Commerce Minister Khandaker Abdul Muktadir sounds alarm in parliament in a reckoning of how the Mideast mayhem is affecting the country's external trade, remittance and fuel supply.
His statement came during a question-and-answer session in parliament on Monday, with Deputy Speaker Kaiser Kamal in the chair.
Responding to a query from ruling-party MP Shamsur Rahman Shimul Biswas, the minister warns that ongoing tensions involving Iran, Israel, and the United States could cast far-reaching implications on the global economy and trade, with Bangladesh unlikely to remain insulated. "The Middle East is an extremely important market for Bangladesh," he says, noting that countries such as the United Arab Emirates, Saudi Arabia, Qatar and Oman are key destinations for Bangladeshi exports, including ready-made garments, pharmaceuticals, frozen foods, and leather goods.
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 trade minister tells the lawmakers. 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 SM Jahangir Hossain, another BNP member, the minister highlights Bangladesh's trade imbalance within the South Asian region. He states that Bangladesh runs trade deficits with all SAARC countries save Nepal, Sri Lanka and the Maldives.
The largest deficit is with India, amounting to $7.86 billion. Other deficits include $681 million with Pakistan, $10.71 million with Afghanistan, and $29.77 million with Bhutan.
In contrast, Bangladesh maintains trade surpluses with Nepal, Sri Lanka, and the Maldives.
Answering another question from Abul Kalam, the minister presents export- performance data, noting that export earnings reached US$55.19 billion in the 2024-25 fiscal year.
Meanwhile, in response to a question from independent MP Rumin Farhana, he says the government has taken steps to control inflation by eliminating duties on 110 products and reducing tariffs on 65 others.
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