Import of industrial raw materials increased by nearly 12 per cent during the July-October period in 2018 compared to the corresponding period of the previous year.
The rise in import was because of the fast growth in local investments, sources said.
Economists attributed the increase in investment to political and economic stability that prompted the business community to invest more in the country.
Raw material import showed positive growth, meaning that the existing companies were not facing problems with their business, they said.
The local entrepreneurs were encouraged to invest more due mainly to a sound financial climate, said a senior official of the Bangladesh Bank (BB).
He expressed hope the higher import of industrial raw materials would help boost productivity in near future.
They should contribute to the government's ultimate target of industrialisation, the official told the FE.
He said the single-digit rate of interest on bank loans was another reason for higher import growth in industrial raw materials.
The import of such materials will increase in future for a relatively calm political situation, another source said.
"More spending on industrial raw material imports means faster industrialisation of the country," a deputy managing director of a private bank told the FE.
Raw material imports mean settlement of letters of credit (LCs) during the period under review.
The opening of the LCs, generally known as import orders for raw materials increased by 11.72 per cent compared to the same period in 2017.
On the other hand, the opening of LCs for capital machinery imports went down to $1599.18 million during the same period in 2018 from 2017's $1942.30 million.
Machinery imports for miscellaneous industries posted 7.93 per cent growth to $1,778.89 million in July-October 2018 from $1,648.21 million in the corresponding period of 2017.
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