Exports rise 8.5% in Sep, remittances hit 11-month low

Bangladesh's merchandise exports rose 8.54% year-on-year to $3.94 billion in September, extending growth for a second consecutive month, while inward remittances fell to an 11-month low to $2.77 billion putting the country's external balance under pressure.

Exports grew 6.34% during the July-September period, according to the latest data from the Export Promotion Bureau (EPB).

Ready-made garments (RMG) largely drove export performance, fetching $3.08 billion in September with 8.56% growth year on year.

The growth came despite a severe gas crisis that has disrupted production and raw material supplies at factories across the country.

Mohammad Hasan Arif, vice-chairman of the EPB, expressed hope that the latest export performance is a positive sign and that Bangladesh's export growth will continue in the coming months.

Mahmud Hasan Khan Babu, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), however, told this newspaper, "The $3 billion export figure is approximately 10% below Bangladesh's average monthly RMG export, reflecting the ongoing challenges faced by the industry. Therefore, the 8.56% growth figure in September cannot be read as a sign of absolute growth, rather the actual scenario of the sector needs to be deeply observed and assessed with caution."

"It's a good sign that, despite the severe gas crisis, garment exports have grown. It translates into buyers' confidence in Bangladesh's suppliers," Inamul Haq Khan, senior vice president of the business body, told TBS yesterday night.

However, some exporters are less optimistic about export prospects in the coming months, as they are seeing a decline in orders.

Rashed Mosharraf, executive director of Zaber and Zubair Fabrics Limited, a leading home textile exporter of the country, told TBS, "We are seeing a reduction in orders for the coming months. We do not expect growth up to next January."

Fazlee Shamim Ehsan, executive president of Bangladesh Knitwear Manufacturers & Exporters Association, said the export growth could be attributed to some exporters managing to increase shipments through their own efficiency and efforts despite difficulties caused by the gas crisis. 

"However, I do not want to believe that these figures have been fabricated, as has allegedly happened in the past [during the former Awami League regime]," he said.

The positive export performance, however, was accompanied by a slowdown in remittance inflows.

Bangladesh received $2.77 billion in inward remittances in September, the lowest monthly inflow in 11 months, according to Bangladesh Bank data.

The central bank's spokesperson Arief Hossain Khan confirmed the figure. 

The previous lowest monthly inflow was $2.56 billion in October 2025.

Despite the monthly slowdown, remittance inflows during the first quarter of the current fiscal year remained significantly higher than a year earlier. Bangladesh received $8.59 billion between 1 July and 30 September, up 13.3% from $7.59 billion during the same period of the previous fiscal year.

September's remittance inflow was also 3% higher than the same month a year earlier, but fell from $2.97 billion in August.

Bangladesh Bank data show that remittances reached about $1 billion in the first 10 days of September and nearly $2 billion by the 20th. This means inflows slowed considerably during the final 10 days of the month.

Bankers said they were uncertain about the precise reason behind the slowdown. Some pointed to the conflict situation in the Middle East as a possible factor, particularly amid frequent reports of Houthi attacks against Saudi Arabia during the final half of September.

They also raised concerns that a revival of the informal hundi market could be contributing to the decline. 

The government currently provides a 2.5% incentive on remittances received through formal channels.

Meanwhile, Bangladesh's balance of payments data point to continued pressure on the country's external accounts, although the figures cover July, the first month of the current fiscal year.

The trade deficit widened to $2.09 billion in July from $1.50 billion in the same month of the previous fiscal year, according to Bangladesh Bank data.

The current account nevertheless remained in surplus at $64 million in July, although this was nearly half the $125 million surplus recorded in July of the previous fiscal year.

The financial account also remained in deficit, with a shortfall of $677 million in July, compared with a deficit of $746 million a year earlier.