The overall balance was only $121 million surplus during the same period of FY '06.

BoP is the difference between the amount paid by a government to other countries and the amount it receives from them.

The trade imbalance, however, has increased around 20 percent to reach $3,304 million compared with the same period of the 2005-06 fiscal as imports surpassed exports.

Imports rose by 17.66 percent in 11 months compared with the same period of FY 2005-06.

Meanwhile, exports marked increase over the corresponding period of the 2005-06 fiscal year. The export growth in the July-May period in FY '07 marked almost 17 percent rise to reach $10,883 million against $9,308 million in FY 2005-06.

The current account balance went down to $468 million in the 11-month period of last fiscal year from $477 million during the same period of FY 2005-06 for increase in trade imbalance.

In the 11 months up to May 31, remittances rose by almost 25 percent compared to the same period a year earlier, to reach $5,462 million.

The surge was mainly due to the increased use of official channels by Bangladeshis abroad to send their money home.

Along with the central bank, the private commercial banks have taken initiatives to increase their earnings from remittance services.

The measures include better links of the Bangladeshi banks with foreign exchange houses and fixation of annual minimum limit of remitting of exchange houses in the UK, US and Canada to increase remittance inflow through banking channels.

Foreign direct investment fell to $495 million in the July-May period, down 27 percent from $679 million in the previous fiscal year.

However, portfolio investment increased 271 percent to $78 million, compared to $21 million during the same period a year earlier.

In July-May period, foreign aid declined by 4.35 percent to stand at $1,120 million compared to $1,171 million during the same period of the previous fiscal.