Import orders remained nearly unchanged during the first nine months of FY2025-26, as businesses adopted a cautious approach amid geopolitical tensions and persistent foreign- exchange pressures.
However, actual payments for imports fell by more than $2.0 billion, reflecting weaker private-sector demand, tighter regulatory controls and ongoing uncertainty surrounding global supply chains, particularly through the Strait of Hormuz.
According to Bangladesh Bank (BB) statistics, the country opened letters of credit (L/Cs) equivalent to $53.94 billion until March of the current financial year, up by only 0.35 per cent from the corresponding period of the previous year.
In terms of settlement, the country paid $50.43 billion during the July-March period of FY2025-26, a decline of 4.14 per cent from the same period of the previous fiscal year, according to the data.
Seeking anonymity, a BB official said demand for imported products and industrial raw materials from the private sector had fallen sharply because of the existing geopolitical tensions. Despite this, import orders remained almost static due to the government's growing import appetite.
In fact, the central banker said entrepreneurs are now adopting a wait-and-see approach due to both domestic and external shocks before moving ahead with business expansion.
Managing Director and CEO of NRBC Bank PLC Dr Md Touhidul Alam Khan said the decline in Bangladesh's import volumes is a multifaceted issue driven primarily by a combination of acute currency constraints and deliberate regulatory interventions.
This liquidity crunch served as the main catalyst, effectively restricting the flow of goods into the country. Compounding the challenge were strategic import control measures implemented by the BB, he said.
In a bid to safeguard dwindling reserves, the seasoned banker noted, the central bank enforced tighter restrictions and higher margin requirements on non-essential and luxury items.
This policy shift was part of a broader government strategy to prioritise reserve stabilisation over trade expansion, reflecting a cautious macroeconomic stance designed to navigate prevailing economic volatility.
On the demand side, he said, the economy witnessed a noticeable slowdown in industrial activity. As industrial production weakened, demand for raw materials and capital machinery, the backbone of manufacturing, declined significantly.
This was mirrored in the consumer market, where inflationary pressures and economic uncertainty led to a sharp fall in demand for luxury and non-essential consumer goods.
"Ultimately, the convergence of these supply-side restrictions and demand-side cooling has led to a structural contraction in the country's import landscape," he added.
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