Capital machinery import sees a turnaround in H1
Saturday, 6 February 2010
Doulot Akter Mala
Import of capital machinery rose by 4.0 per cent in the first half of current fiscal indicating higher investment in domestic industrial sector after a sluggish first quarter.
According to data of Chittagong Customs House (CCH), capital machinery worth Tk 36.70 billion was imported in the July-December period of 2009-10, which is higher by 4.0 per cent over the same period last fiscal.
The National Board of Revenue (NBR) collected revenue worth Tk 1.09 billion from such imports in the first half achieving 2.53 per cent growth.
On the contrary, import of capital machinery by wholly export-oriented industries dropped by about 50 per cent in July-December period showing sluggishness in the sector, caused by global recession.
Capital machinery worth Tk 16.38 billion was imported by the export sectors in the first half against Tk 34.04 billion in the corresponding period of the previous fiscal, CCH statistics said.
Revenue collection from imports of export oriented industries also dropped to Tk 491 million from Tk 1.04 billion in the same period of the previous fiscal.
The duty on capital machinery import was 1.0 per cent for export-oriented industries while it is 3.0 per cent for other domestic industries.
Dr. Zaidi Sattar, chairman of Policy Research Institute (PRI), said: "Higher trend of capital machinery import shows that the economy is recovering from global recession."
"The country's economy has started picking up. We can now assume a 6.0 per cent economic growth in the year," he said.
Capital utilisation will increase significantly during January-June period, he said.
The government has projected 5.0-5.5 per cent GDP growth in the current fiscal, but it will grow beyond this level, he added.
Local entrepreneurs have been coming forward to making fresh investment in the wake of surging domestic demand for goods, said a senior customs official.
"Domestic industries are growing fast, which will boost up revenue collection and economic growth," he said.
Import of capital machinery rose by 4.0 per cent in the first half of current fiscal indicating higher investment in domestic industrial sector after a sluggish first quarter.
According to data of Chittagong Customs House (CCH), capital machinery worth Tk 36.70 billion was imported in the July-December period of 2009-10, which is higher by 4.0 per cent over the same period last fiscal.
The National Board of Revenue (NBR) collected revenue worth Tk 1.09 billion from such imports in the first half achieving 2.53 per cent growth.
On the contrary, import of capital machinery by wholly export-oriented industries dropped by about 50 per cent in July-December period showing sluggishness in the sector, caused by global recession.
Capital machinery worth Tk 16.38 billion was imported by the export sectors in the first half against Tk 34.04 billion in the corresponding period of the previous fiscal, CCH statistics said.
Revenue collection from imports of export oriented industries also dropped to Tk 491 million from Tk 1.04 billion in the same period of the previous fiscal.
The duty on capital machinery import was 1.0 per cent for export-oriented industries while it is 3.0 per cent for other domestic industries.
Dr. Zaidi Sattar, chairman of Policy Research Institute (PRI), said: "Higher trend of capital machinery import shows that the economy is recovering from global recession."
"The country's economy has started picking up. We can now assume a 6.0 per cent economic growth in the year," he said.
Capital utilisation will increase significantly during January-June period, he said.
The government has projected 5.0-5.5 per cent GDP growth in the current fiscal, but it will grow beyond this level, he added.
Local entrepreneurs have been coming forward to making fresh investment in the wake of surging domestic demand for goods, said a senior customs official.
"Domestic industries are growing fast, which will boost up revenue collection and economic growth," he said.