Bangladesh's exports see reduction by over USD10B after discovery of ‘accounting anomaly’
(MENAFN) In a significant revision, Bangladesh's exports for the last fiscal year have been reduced by at least USD10 billion following the discovery of an "accounting anomaly." The fiscal year, spanning from July to June, revealed a discrepancy between the export figures reported by Bangladesh bank and the Export Promotion Bureau (EPB), showing a difference of at least USD12 billion.
Both the Bangladesh Bank, the nation's central bank, and the EPB, which operates under the Ministry of Commerce, maintain export data, initially sourced from the National Board of Revenue (NBR). This data discrepancy came to light with the EPB reporting USD63.05 billion in goods and services exports for FY23, while the actual receipts recorded by the central bank amounted to USD50.97 billion.
The substantial USD12.08 billion gap between reported export shipments and realized values sparked widespread criticism and necessitated a correction in the data. This adjustment had a significant impact on the balance of payments statement, as the mismatch was linked to negative trade credit.
The resulting deficit in the financial account raised alarms for both the Bangladesh Bank and the International Monetary Fund (IMF), especially as the negative trade credit continued to affect the financial account's deficit in FY24.
Saiful Islam, a spokesperson for Bangladesh Bank, explained that the discrepancy arose due to differing methodologies employed by the NBR and the EPB in calculating export figures. "The confusion regarding the export data is resolved now," Islam stated.
Economist Ahsan H Mansur pointed to political uncertainty and foreign exchange instability as contributing factors to this substantial discrepancy, highlighting the broader economic challenges facing the country.
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