Mideast war poses challenges to Bangladesh's economy: Commerce minister

Commerce Minister Khandaker Abdul Muktadir today (20 April) told the Jatiya Sangsad that the ongoing instability in the Middle East has contributed to a rise in global fuel prices, pushing up import expenditures and shipping as well as insurance costs.

The unrest may also lead to a decline in exports to Middle Eastern markets, a surge in commodity prices, and potential challenges to the flow of remittances – all of which could weigh on the country's economic stability, he made the remarks while responding to a question from Pabna-5 lawmaker Md Shamsur Rahman Shimul Biswas during the parliament's question-and-answer session.

Shimul Biswas asked whether the Middle East war between the US-Israel and Iran might have any adverse effect on Bangladesh's trade and commerce, and what measures the commerce ministry has undertaken to address the issues.

In response, Muktadir said that the war could affect global trade and the economy – and Bangladesh is no exception. "The Middle East is one of Bangladesh's most significant trading partners and the country primarily exports ready-made garments, pharmaceuticals, frozen foods, and leather goods to markets in the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, and Oman."

He said the government is closely monitoring the evolving situation and, under the prime minister's directives, the commerce ministry has adopted a number of precautionary and strategic measures to reduce risks.

Among the actions taken are efforts to diversify and expand export markets, including increasing trade with India, Nepal, Bhutan, East Asia, and ASEAN countries, he said, adding that his ministry is also pushing to boost exports of pharmaceuticals, agricultural and processed goods, jute and jute products, plastics, frozen food, shrimp and fish, ICT, and light engineering items alongside ready-made garments, the minister said.

To facilitate exports, authorities have allowed duty-free import of essential raw materials and inputs for the shipbuilding and footwear industries. Exporters are also being provided with online "Rules of Origin" certificates to ensure preferential market access, Muktadir continued.

Bangladesh continues to strengthen bilateral trade relations through regular joint committees and secretary-level meetings with key partners such as India, Nepal, Bhutan, Sri Lanka, and Cambodia to resolve existing trade barriers, he said.

Negotiations are ongoing for Comprehensive Economic Partnership Agreements with South Korea, Singapore, and the United Arab Emirates. Three rounds of talks on a Preferential Trade Agreement with Nepal have been completed, while preparations for the fourth round are under way, the minister said.

The country hosted the 10th Bangladesh-Bhutan Commerce Secretary-level meeting in March 2026 in Dhaka to enhance bilateral trade cooperation. Meanwhile, Japan and Bangladesh have signed their first-ever Economic Partnership Agreement — marking the nation's first free trade deal with any country, he said.

In addition, talks on free trade and investment expansion are ongoing with several other countries, including China, Malaysia, and Indonesia, to ensure stable supply chains, the minister said.

The government has decided early closure of shopping malls, markets, fairs, and cultural events by 7 pm to conserve energy and maintain consistent power supply amid global fuel uncertainty.

Market monitoring has been intensified to curb hoarding and artificial shortages, with strict legal instructions issued to relevant regulatory agencies, he said.

Minister Muktadir reaffirmed that the government remains vigilant and fully prepared to take all necessary steps to protect Bangladesh's trade interests and maintain macroeconomic stability.