Chittagong port of Bangladesh
Dhaka, Bangladesh (BBN)- Bangladesh overall import increased by 12.13 per cent in March, mainly due to higher import of food grains and capital machinery, officials said.
The settlement of letters of credit (LCs), generally known as actual import, in terms of value, rose to $4.20 billion in March 2018, from $3.74 billion in the same period of the previous calendar year, according to the central bank’s latest statistics.
The actual import was $4.02 billion in February 2018.
On the other hand, opening of overall fresh LCs, generally known as import orders, rose by 25.64 per cent to $5.42 billion in March 2018 from $4.32 billion a year ago. It was $4.24 billion in February 2018.
Talking to the BBN, a senior official of the Bangladesh Bank (BB), the country’s central bank, said the overall import increased significantly in March mainly due to higher import of food grains, particularly rice and wheat, as well as capital machinery.
The existing upward trend in import might continue in the coming months also ahead of the holy Ramadan, the central banker hinted.
Normally, a large quantity of essential commodities is imported to meet the additional demand of consumers during the month of Ramadan.
Rice import rose to $136.12 million in March 2018 from only $9.0 million a year before, while wheat import stood at $101.88 million from $98.97 million, the BB data showed.
However, the import of food grains, particularly rice, may fall slightly in the coming months due to seasonal effect, according to the BB official.
He also said the import of capital machinery may increase further in the coming months following implementation of different infrastructure projects, including Padma Bridge.
Import of capital machinery or industrial equipment used for production rose to $354.25 million in March 2018 as against $243.53 million in the same month of 2017.
Currently, the government is implementing nine projects under the supervision of Fast Track Project Monitoring Committee, headed by Prime Minister Sheikh Hasina, for ensuring their quick completion.
Echoing the BB official’s predications, a senior executive of a leading private commercial bank said the overall import may increase further in the coming months mainly due to holy Ramadan.
“Higher imports of capital machinery or goods particularly for power plants and of infrastructure development projects across the country may push up overall import payment obligations in the coming months,” the private banker noted.
The import of petroleum products, however, came down to $248.49 million in March 2018 from $304.34 million in the same month of 2017.
Besides, back-to-back import for ready-made garment (RMG) accessories also fell to $608.29 million last month from $642.06 million in March 2017.
BBN/SSR/AD
