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Dhaka Tribune

Capital machinery import sees sharp fall

Update : 06 Nov 2014, 11:24 PM

The country’s overall import expenditure experienced slower growth in September as capital machinery import witnessed a sharp 46% fall. 

The total LC (letter of credit) settlement value rose by 9% to US$3.26bn in September compared to $2.9bn in the same period of last year. 

The import growth though increased year on year, it fell by 5.54% compared to $3.46bn in the previous month. 

It, however, registered 43.70% growth in August due to significant rise in capital machinery import. 

The LC value against capital machinery stood at $147m in September which was 46% lower than that of $215.72m in August, according to the central bank data released yesterday.  

Capital machinery import started to rise in recent months due to inflow of foreign loans, said a senior executive of a private bank. “Though it dropped in September, it is not abnormal.” 

“We expect the machinery import will increase in the coming months as businessmen are moving to expand their business with the cooling down of the political unrest,” he added. 

The growth of capital machinery import rose by 66% to $217m in August from $130m in the previous month. 

According to the central bank data, LC value against rice import stood at $33.5m in September followed by wheat $63.54m, sugar $48.43m, edible oil (crude) $66m and pulses $28.95m. 

The total LC opening value rose by 13% to $3.5bn in September compared to $3.1bn in the same period of the last year. 

The cumulative LC settlement value rose by 11% to $9.69bn in first three months of current fiscal year 2014-14 compared to $8.73bn in the same period of the last fiscal year.

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