Capital machinery import rises by 36pc in Q1
Sunday, 7 November 2010
FE Report
Capital machinery import increased by over 36 per cent in the first quarter of the current fiscal in the backdrop of world economic recovery boosting exports and increasing domestic demand as well, officials said.
Settlement of letters of credit (LCs), generally known as actual import, for the capital machinery rose to US$462.05 million during July-September period of the fiscal 2010-11 (FY11) from $337.58 million in the same period of the previous fiscal, according to the central bank statistics.
On the other hand, opening of LCs for importing of capital machinery, known as import orders, increased by over 100 per cent during the period compared with the same period of the previous fiscal.
LCs worth $795.85 million were opened to import machinery for factories during the period under review against $396.74 million in the same period of the previous fiscal.
"The data clearly indicate a rising level of confidence among the entrepreneurs about the country's future industrial prospects," a senior official of the Bangladesh Bank (BB) told the FE Saturday.
He also said the upward trend of capital machinery imports would continue if the government ensures adequate supplies of gas and power, particularly in the industrial units.
Most of the import orders for capital machinery were placed from different sectors including textiles, readymade garments, pharmaceuticals, packaging and jute industries the central bank official said quoting the latest figures.
The BB officials and experts expect that the upward trend of machinery import might continue in the near future because of recovery of major economies from the global meltdown and restoration of confidence of the country's business community.
"The import of capital machinery for power and energy sector will increase in the near future to meet the growing demand for electricity across the country," a senior official of a foreign commercial bank told the FE.
He also said local entrepreneurs would move forward to make fresh investment in different sectors as major economies are gradually recovering from the global meltdown.
The country's export grew by 29.98 per cent to $5.029 billion in Q1 of FY11 against $3.869 billion in the corresponding period of the pervious fiscal year.
Capital machinery import increased by over 36 per cent in the first quarter of the current fiscal in the backdrop of world economic recovery boosting exports and increasing domestic demand as well, officials said.
Settlement of letters of credit (LCs), generally known as actual import, for the capital machinery rose to US$462.05 million during July-September period of the fiscal 2010-11 (FY11) from $337.58 million in the same period of the previous fiscal, according to the central bank statistics.
On the other hand, opening of LCs for importing of capital machinery, known as import orders, increased by over 100 per cent during the period compared with the same period of the previous fiscal.
LCs worth $795.85 million were opened to import machinery for factories during the period under review against $396.74 million in the same period of the previous fiscal.
"The data clearly indicate a rising level of confidence among the entrepreneurs about the country's future industrial prospects," a senior official of the Bangladesh Bank (BB) told the FE Saturday.
He also said the upward trend of capital machinery imports would continue if the government ensures adequate supplies of gas and power, particularly in the industrial units.
Most of the import orders for capital machinery were placed from different sectors including textiles, readymade garments, pharmaceuticals, packaging and jute industries the central bank official said quoting the latest figures.
The BB officials and experts expect that the upward trend of machinery import might continue in the near future because of recovery of major economies from the global meltdown and restoration of confidence of the country's business community.
"The import of capital machinery for power and energy sector will increase in the near future to meet the growing demand for electricity across the country," a senior official of a foreign commercial bank told the FE.
He also said local entrepreneurs would move forward to make fresh investment in different sectors as major economies are gradually recovering from the global meltdown.
The country's export grew by 29.98 per cent to $5.029 billion in Q1 of FY11 against $3.869 billion in the corresponding period of the pervious fiscal year.