Import falls 15pc in February

Import dropped by more than 15 per cent-or US$640.05 million-in February over the previous month due to the lower purchase of consumer goods, industrial raw materials and capital machinery, officials said.
The opening of LCs, known as import orders, also fell by more than 13 per cent to $3.96 billion last month from $4.59 billion the month before. It was $4.48 billion in December last year.
These come as actual import with regard to the settlement of letters of credit (LCs) came down to $3.46 billion in February from $4.10 billion in January 2017. It was $3.70 billion in December 2016, according to the central bank's provisional data.
"The overall import decreased slightly during the period mainly due to lower import of consumer goods and industrial raw materials," a senior official of the Bangladesh Bank (BB) told the FE Wednesday.
The import of overall consumer goods decreased to $439.47 million in February 2017 from $516.66 million in January, while import purchase of industrial raw materials fell $1.24 billion from $1.49 billion. Lower import of capital machinery has also pushed down the overall imports in the month of February over the previous month, the central banker explained.
The import of capital machinery or industrial equipment used for production dropped by nearly 20 per cent to $284.92 million in February from $355.16 million a month ago, the BB data showed.
The central banker believed that the import of capital machinery imports will pick up in the coming months for the implementation of ongoing infrastructure projects across the country.
Currently, the government is implementing nine projects under a Fast Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina.
"The overall import decreased in the month of February on lower working days. But it is still at a satisfactory level considering the overall economic performance," another BB official said.
However, the import of petroleum products also dropped by nearly 13 per cent to $202.83 million in February from $232.77 million a month before.
Talking to the FE, a senior official of a leading private commercial bank said the country's overall import may increase in the coming months helped by higher import of capital machinery.
Import of capital machinery increased by nearly 65 per cent to $ 3.22 billion in the seven months to January of this fiscal year against $ 1.95 billion during the same period of FY 16, the BB data showed.
Bangladesh's overall import grew by 4.22 per cent to $40.08 billion in the FY' 16 from $38.45 billion in the previous fiscal.
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