Bangladesh's import payments rose by nearly 11pc year-on-year in July-August of fiscal year 2026-27, driven largely by higher global petroleum prices, according to Bangladesh Bank (BB) data.
The upward trend may persist in the coming months, with import demand potentially rising further ahead of Ramadan, a senior BB official told The Financial Express.
"Higher global fuel oil prices pushed up import costs during the period under review," the official said, attributing volatility in the international oil market mainly to tensions in the Middle East.
Actual import payments for petroleum products, measured by the settlement of letters of credit (LCs), surged by more than 38pc to $2.04 billion in July-August of FY27, up from $1.48 billion in the same period a year earlier, according to the central bank's latest statistics.
In FY26, petroleum import payments increased by 6.42pc to $10.68 billion from $10.03 billion in FY25.
Overall import payments rose by nearly 11pc to $12.47 billion in the first two months of FY27, compared with $11.26 billion in the corresponding period of the previous fiscal year.
Meanwhile, the opening of fresh LCs, generally known as import orders, increased by 17.91pc to $13.94 billion during the period, up from $11.82 billion a year earlier.
However, imports of capital machinery, or equipment used in production, declined by 5.52pc to $0.29 billion from $0.31 billion in the same period of FY26.
Imports of industrial raw materials also fell by 2.19pc to $3.80 billion from $3.89 billion.
In contrast, imports of intermediate goods rose by more than 29pc to $0.82 billion from $0.64 billion in the corresponding period a year earlier.
"The upward trend in imports indicates that the economy is gradually recovering despite ongoing geopolitical tensions," Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), told The Financial Express.
He said elevated and volatile global petroleum prices had increased the country's import payment obligations, and that the trend could continue until December 2026.
Islam, a former executive director of the central bank, said actual imports could gradually increase as the government pursued an expansionary fiscal policy aimed at boosting investment, particularly in productive sectors.
He added that the central bank's growth-supportive monetary policy, including stimulus packages, alongside improved political stability and better prospects for private-sector investment, could accelerate import growth in the coming months.
Financial Mirror/AH
