It is deeply concerning that trade misinvoicing continues to drain the nation’s wealth, undermining our economic stability and development prospects. According to the latest report by Global Financial Integrity (GFI), Bangladesh lost around $68 billion between 2013 and 2022 due to trade misinvoicing—an average of $6.8 billion annually. These illicit outflows account for roughly 16 percent of the country’s total trade with the world. Of the total amount, $32.8 billion is linked to transactions with advanced economies.

Illicit Financial Flows (IFFs) refer to money or assets moved across borders that are illegally earned, transferred, or used. Such flows erode a country’s tax base, weaken domestic resource mobilisation, undermine the rule of law, and severely constrain the government’s ability to finance public services. If these persistent losses of resources could be contained, they could be invested in healthcare, education, and infrastructure development.

Trade misinvoicing, through the deliberate over- or under-reporting of import and export values, has long been recognised as a key channel for money laundering across the region. In Bangladesh’s case, over-invoicing of capital machinery imports, often facilitated by access to subsidised loans, has emerged as a particularly common tactic. Weak oversight, delayed reporting of trade data, and limited coordination among institutions have created an enabling environment for such activities. Economists have pointed out that discrepancies in trade data are often exacerbated by our failure to publish timely and comprehensive statistics, making it difficult to verify transactions with partner countries. This not only hampers accountability but also emboldens those seeking to exploit the system. Moreover, export earnings that are not repatriated, along with the use of informal remittance channels such as hundi, further contribute to the outflow of foreign currency. Together, these practices paint a worrying picture for our economy.

The new government must prioritise addressing this issue. It needs to strengthen customs enforcement, ensure real-time monitoring of import and export pricing, improve transparency in trade transactions, and undertake institutional reforms. Since Bangladesh is not alone in facing these challenges—similar patterns are evident across developing Asia—the need for coordinated domestic and international responses is reinforced. Enhancing data sharing and cooperation with international partners, particularly those in advanced economies where a substantial share of these illicit flows is directed, is essential.

Above all, the government must demonstrate the political will to confront the underlying drivers of illicit financial flows. As the deadline for achieving Sustainable Development Goals approaches, we cannot afford to lose billions of dollars through preventable loopholes.