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Dhaka Tribune

Import rises 13%

Update : 20 Apr 2014, 07:25 PM

The country’s import expenditure rose by 13.49% in the first eight months of the current fiscal year as compared to the same period of last fiscal year.

The overall import continued to increase at a time when the country had plunged into a political turbulence centering January 5 general polls.

Increased import of capital machineries has led the overall import to a positive growth, said a senior executive of Bangladesh Bank.

Capital machinery import increased during the period of July-February due to the increased inflow of foreign direct investment mainly in the garment sector, he also added.

According to the central bank data, capital machinery import witnessed 8.61% rise in the first eight months from the negative growth of 18.46% in fiscal year 2012-13. The growth was also negative by 15.85% in the previous fiscal year 2011-12.

The value of LCs (letter of credits) settlement stood at US$2.4bn in the period of July to February of the current fiscal year compared to $2.12bn in the same period of the last fiscal year.

Although the import growth remained positive, it was slower compared to the export growth, the trade deficit during the period reduced to $3.56bn from $4.59bn.

The export earnings increased by 13.96% in July-February of the current fiscal year from 9.36% growth recorded in the same period of the last fiscal year. Bangladesh Bank, however, fears that the import of commodity products will be increased significantly very soon ahead of Ramadan.

The central bank has already stressed the need for incre asing the export earnings as it might face a setback in balance of payments for the next few months due to significant increase of import.

Import has already increased significantly by 23.33% to $3.13bn in February of current fiscal year just after January 5 polls, compared to growth of 15.52% in the same month of the previous year.

Meanwhile, the central bank has urged the government to take necessary measures to enhance manpower export to offset a looming setback in the country’s foreign exchange balance, said an official of the central bank.

According to the settlement of letter of credit (LCs), food grains imports rose by 119.78% during the period compared to 41.38% negative growth in the same period of previous fiscal year.

Import of food grains followed by industrial raw materials with a rise of 10.57% compared to 6.84% negative growth while petroleum products registered 3.63% negative growth compared to 5.45% negative growth.  

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