The country’s import bill payment registered a negative growth in the first nine months of the current financial year on year-on-year basis like the last few months as the import of capital machinery and industrial raw materials declined sharply amid a negative investment situation, said Bangladesh Bank officials. According to the BB data released on Monday, the overall import bill payment in July-March of the FY 2012-13 posted a negative growth of 10.40 per cent compared with that of 14.60 per cent growth during the corresponding period of the FY 2011-12.
A BB official told New Age on Monday that an unfavorable business environment due to the recent spates of political violence had affected the import bill payment.
The business people have now adopted a ‘wait and see’ approach to further expand their investment as an insecurity situation has been created for the trade and commerce due to the political unrest ahead of the national election, he said.
The BB data showed the settlement of letters of credit or import bill payment in July-March of the FY 2012-13 stood at $23.98 billion against that of $26.77 billion in the same period of the FY 2011-12.
LC opening in the first nine months of the FY 2012-13 also posted a negative growth of 2.27 per cent compared with that of a negative growth of 8.35 per cent in the same period of the FY 2011-12.
LCs worth $26.63 billion were opened in July-March against the LCs worth $27.25 billion opened in the corresponding period of the FY 2011-12.
The lower import growth may hit severely the country’s expected gross domestic products for the FY 2012-13 as the capital machinery and the industrials raw materials are considered as pivotal components to expand the industrial sector, another BB official said.
The BB data showed that growth in settlement of LCs for industrial raw materials and capital machinery had registered negative growth — 5.11 per cent for industrial raw materials and 18.09 per cent for capital machinery — in July-March of the FY 2012-13.
Growth in settlement of LCs for industrial raw materials was 12.73 per cent and that for capital machinery was 22.18 per cent in July-March of the FY 2011-12.
Settlement of LCs in the first nine months of the current financial year for industrial raw materials was worth $9.81 billion and that for capital machinery $1.51 billion.
LC settlement for industrial raw materials was worth $10.34 billion and that for capital machinery worth $1.85 billion in the first nine months of the FY 2011-12.
The BB official said that the existing gas and electricity shortage in the industrial sector had also discouraged the businessmen to set up new industrial unit which also put a negative impact on the import payment.
The import of food grains also decreased significantly in the period due to a bumper production in the few harvesting sessions, showed the BB data.
LCs settlements for food grains (rice and wheat) in July-March posted a negative growth of 37.76 per cent from a negative growth of 48.46 per cent in the same period of the FY 2011-12.
Settlement of LCs in the first nine months of the current financial year for rice and wheat were worth $443.84 million against $713.08 million during the same period of the FY 2011-12.
-with New Age input
