Overall imports for the country's industrial sector grew over 6.0 per cent in the last fiscal year (FY), buoyed by higher import of capital machinery, officials said.
The actual import in terms of settlement of letters of credit (LCs) increased by 6.47 per cent to US$30.20 billion during the July-June period of FY 2015-16 from $28.36 billion in the same period of the previous fiscal, according to the central bank's latest report.
On the other hand, the opening of LCs, generally known as import orders, rose by 6.74 per cent to $33.50 billion in the FY 16 from corresponding $31.39 billion.
The import of capital machinery or industrial equipment used for production was up by 14.10 per cent to $3.53 billion in FY 16 as against previous $3.10 billion.
"Higher capital machinery imports were needed for setting up power plants and implementation of different infrastructure- development projects, including Padma Bridge," a senior official of the Bangladesh Bank (BB) explained.
He also said machinery or equipment for building flyovers and for balancing, modernisation, rehabilitation and expansion (BMRE) of industrial units, particularly apparel factories, also helped raise the pace of capital machinery import.
"Various government purchases, including machinery for power plants, through state-owned commercial banks have also been included in the capital machinery imports," the central banker noted.
He expects that the overall industrial imports will increase in the coming months following implementation of different infrastructure-development projects across the country.
Currently, the government is implementing nine projects under a Fast Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina, for quick implementation.
He also said higher imports for sectors like textile and garment industry, pharmaceuticals, food processing, energy and power, printing industries and telecom industry contributed to the rise in the overall capital machinery import in the last fiscal.
 "Lower interest rate along with falling trend in capital machinery prices in the international market has encouraged the interested entrepreneurs to import capital machinery during the period under review," a senior official of a leading state-owned commercial bank said.
The existing trend in capital machinery import will continue in the near future if the government ensures adequate infrastructural facilities along with supply of gas and power, particularly in the industrial units, he added.
Talking to the FE, a senior official of a leading private commercial bank said entrepreneurs got encouraged for taking up new ventures or expanding their existing business taking advantage of downturn in 'financial cost' in Bangladesh.
"Most of the banks are now offering lower interest rates to the best-performing clients for reduction in their cost of fund using excess liquidity," the private banker observed.
The banker also said the country's overall imports recorded a positive growth last fiscal year despite falling commodity and petroleum prices on the international market.
Bangladesh's overall imports grew by 4.22 per cent to $40.08 billion in the FY 16 from $38.45 billion in the previous fiscal, the BB data showed.
"The overall import may pick up slightly this fiscal year," the banker hinted.
The import of intermediate goods, like coal, hard coke, clinker and scrap vessels, decreased by 0.10 per cent to $3.35 billion in the FY 16 from over $3.35 billion in the FY 15.
On the other hand, the import of industrial raw materials rose by 3.21 per cent to $15.67 billion in the FY 16 from $15.18 billion a year ago.
The import of machinery for miscellaneous industries increased by 14.12 per cent to $4.30 billion in the last fiscal from $3.77 billion in FY 15, according to the BB data.
   siddique.islam@gmail.com
Industrial imports mark modest growth
Siddique Islam | Published: August 23, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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