Dhaka, Bangladesh (BBN)– The rate of growth in the overall import payments fell drastically in the fiscal year (FY) 2011-12 because of the lower import of food grains and luxurious items, officials said.
The import growth rate came down to 8.95 percent in the FY ’12 from 38.61 percent of the previous fiscal, according to the central bank statistics, released recently.
“Such import trend may continue in the coming months as the central bank is working to contain inflation through discouraging credit flow to the unproductive sectors,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
He also said the BB is still advising the commercial banks to discourage extending credits to less productive sectors including luxurious items for reining in the inflationary pressures in the economy.
“We’re taking different measures in line with our existing monetary policy statement (MPS),” the central banker said without elaborating.
Earlier on July 18 last, the BB unveiled the new half-yearly monetary policy statement (MPS), aiming to curb inflation further while ensuring adequate credit flow to the private sector for achieving inclusive economic growth.
The value of letters of credit (LCs) against imports worth US$ 34.814 billion was settled in FY ’12 compared to $ 31.953 billion in the previous fiscal, the BB data showed.
The imports of intermediate goods like coal, scrap vessels, hard coke and clinker increased by 56.63 percent to $ 3.270 billion in FY ’12 from $ 2.087 billion of the previous fiscal.
The BB official also said import of other essential items including petroleum products, industrial raw materials and capital machinery also increased in the last fiscal to meet the domestic demand.
Petroleum products import increased by 40.96 percent to $ 4.479 billion in FY ’12 from $ 3.177 billion of the previous fiscal year.
However, import of industrial raw materials witnessed a 9.65 percent growth to $ 13.371 billion in the last fiscal against $ 12.195 billion of the fiscal before while the import of industrial spare parts and accessories was worth $ 3.052 billion compared to $ 2.846 billion.
Import of capital machinery — industrial equipment used for production — was up by 22.95 percent to $ 2.515 billion in FY ’12 as against $ 2.046 billion of the FY ’11.
Import of food grains such as rice and wheat, in terms of settlement of LCs, witnessed a negative growth of 53.56 percent. The imports fell to $ 925.87 million in the last fiscal from that of $ 1.994 billion in the FY ’11.
BBN/SSR/AD-10Aug12-2:16 am (BST)
