Despite an increased trend in import of products for Ramadan, the overall import payments declined in May on year-on-year basis due to the existing dull situation in the country’s industrial sector, said officials of Bangladesh Bank. According to the latest BB data released on Wednesday, settlement of letters of credit in May registered a negative growth of 4.48 per cent compared with that of a negative growth of 3.93 per cent in the corresponding month of 2012.
The total import bill payment in May stood at $2.70 billion. It was $2.83 billion in May 2012 and $2.95 billion in May 2011.
A BB official told New Age that the declining trend in import payment might continue in the months to come if the existing political crisis persists.
He said, ‘We hoped that the import payment would increase in May ahead of Ramadan, but it declined further. The businesspeople have recently adopted a wait and see approach due to the existing political unrest which hit severely the import payment.’
The BB data showed that the import products for Ramadan like edible oil, pluses, onion and ginger had increased significantly in May compared with that of previous April.
The import of pulses increased to $31.91 million in May from $24.76 million in April, that of onion to $7.26 million from $6 million, that of ginger to $4.05 million from $3.37million, and that of edible oil to $45.53 million from $23.77 million.
The BB official said that the import of capital machinery and industrial raw materials which is considered a pivotal component in setting up new industries and to increase the industrial production maintained a declining trend in May.
The fresh LCs opening of capital machinery increased to $193.32 million in May this year from $158.28 million in April, that of fabrics and accessories for garment products to $486.83 million from $529.31 million, and that of raw cotton to $152.95 million from $202.63million.
The businesspeople are now reluctant to expand their industrial units as they are anxious about the trade and commerce situation in the country amid the current political unrest, he said.
Moreover, the high rate of interest on banks’ lending and shortage of gas and electricity also held the businesspeople back, he said.
The BB data showed that the LC opening or import orders increased by 0.38 per cent in May compared with that of 11.40 per cent in the same period a year ago.
In May 2013, LCs worth $3.17 billion were opened by the banks compared with LCs worth $3.16 billion opened in May 2012. LCs worth $2.83 billion was opened in May 2011.
-With New Age input
