Bangladesh detects 'accounting anomalies,' reduces last export figure by $10B

DHAKA, Bangladesh

The exports of Bangladesh in the last fiscal year have been reduced by at least $10 billion, after detecting what officials call “accounting anomaly."

This happened after a discrepancy between export figures reported by the Bangladesh Bank and the Export Promotion Bureau (EPB) showed a difference of at least $12 billion in the last fiscal year, which runs between July and June.

Both Bangladesh Bank -- the country's central bank -- and EPB, a wing of the Ministry of Commerce, keep data on exports from Bangladesh. They receive the initial data from the National Board of Revenue (NBR), which keeps the ledger.

There was a significant discrepancy of $12.08 billion between the $63.05 billion in goods and services exports reported by the EPB for FY23 and the $50.97 billion actually received, according to the central bank.

The discrepancy between export shipments and realized values led to widespread criticism, prompting a correction in the data.

This adjustment impacted the balance of payments statement, as the mismatch was attributed to negative trade credit.

The resulting deficit in the financial account raised concerns for the Bangladesh Bank and the International Monetary Fund (IMF), particularly due to the substantial negative trade credit contributing to the financial account's ongoing deficit in FY24.

Bangladesh Bank Executive Director Saiful Islam told Anadolu that the discrepancy in export data stems from the NBR and the EPB employing different methodologies to calculate export figures.

“The confusion regarding the export data is resolved now,“ Islam said.

Economist Ahsan H Mansur suggested political uncertainty and foreign exchange instability are contributing factors to this huge discrepancy.

“Some exporters may be withholding proceeds due to political concerns, while others may be delaying transfers to benefit from the taka's depreciation against the dollar,” he told Anadolu.

Additionally, Mansur said, the unfavorable exchange rate may incentivize some exporters to utilize unofficial channels, further straining Bangladesh's foreign exchange reserves.

The NBR, meanwhile, resolved the discrepancy on Wednesday in export data by correcting overstated figures from recent years.

A top NBR official who preferred anonymity told Anadolu that the downward revision of export figures would result in a lower export-to-GDP ratio, subsequently increasing the burden of debt repayment.