Imports grow by over 12pc in seven months

Country's overall imports grew by more than 12 per cent in the first seven months of the current fiscal year (FY) thanks to a steep rise in import of capital machinery, officials said.
"Overall imports increased during the period mainly due to higher import of capital machinery and intermediate goods," a senior official of the Bangladesh Bank (BB) told the FE.
Actual import in terms of settlement of letters of credit (LCs) rose to US$ 26.55 billion during the July-January period in the FY 2016-17 from $ 23.65 billion during the same period in the previous fiscal, according to the central bank statistics.
On the other hand, opening of LCs, usually known as import orders, rose by 12.32 per cent to $ 27.46 billion in the first seven months of the FY 2017 from $ 24.45 billion during the same period of the previous fiscal.
An upward trend in importing capital machinery may continue in the coming months for implementation of different ongoing infrastructure development projects across the country, according to the central banker.
Besides, setting up of large-scale power plants is pushing up the import of capital machinery, he explained.
Currently, the government is implementing nine projects under a Fast-Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina.
Import of capital machinery or industrial equipment used for production 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 central banker also said higher import for textile, leather, jute, garment, pharmaceutical, shipbuilding and energy and power sectors contributed to raising the overall import of capital machinery.
Echoing the central banker, MA Halim Chowdhury, Managing Director and Chief Executive Officer of Pubali Bank Limited, said the rising trend in capital machinery imports may continue in the near future following remediation and expansion activities in the country's apparel and clothing sector.
"Most of the apparel factories are using modern technology through BMRE (balancing, modernisation, rehabilitation and expansion) as per remediation programme," the senior banker explained.
He also said entrepreneurs are now using such hi-tech for reduction of their production costs.
On the other hand, import of intermediate goods like coal, hard coke, clinker and scrap vessels increased by nearly 14.27 per cent to $ 2.20 billion in the first seven months of this fiscal from $ 1.92 billion during the same period of the FY 16.
Import of industrial raw materials grew by 4.69 per cent to $ 9.53 billion during the period under review from $ 9.11 billion during the same period of the FY 16.
During the period, import of machinery for miscellaneous industries witnessed a 9.37 per cent growth to $ 2.76 billion from $ 2.52 billion during the same period of the previous fiscal.
However, import of petroleum products dropped by 12.51 per cent to $ 1.39 billion during the July-January period of FY 17 from $ 1.59 billion during the same period of the previous fiscal.
"Import of fuel oils fell during the period under review due to seasonal impact," another BB official said, adding that lower prices of petroleum products in the global market have also contributed to easing import payments' pressure on the economy.  
The declining trend in import of fuel oils may continue in the coming months, the central banker hinted.
Import of consumer goods increased by 5.10 per cent to $ 2.90 billion in the first seven months of this fiscal from $ 2.76 billion during the same period of the FY 16, the BB data showed.
Food grain imports, particularly of rice and wheat, dropped by more than 15 per cent to $ 642.83 million during the period of the FY 17 from $ 760.69 million during the same period of the previous fiscal.
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