Dhaka, Bangladesh (BBN)– Capital machinery import increased by over 36 per cent in the first quarter of this fiscal in the backdrop of world economic recovery boosting exports and increasing domestic demand as well, officials said.
Settlement of letters of credit (LCs), generally known as actual import, for the capital machinery rose to US$462.05 million during July-September period of the fiscal 2010-11 (FY11) from $337.58 million in the same period of the previous fiscal, according to the central bank statistics.
On the other hand, opening of LCs for importing of capital machinery, known as import orders, increased by over 100 percent during the period compared with the same period of the previous fiscal.
LCs worth $795.85 million were opened to import machinery for factories during the period under review against $396.74 million in the same period of the previous fiscal.
“The data clearly indicate a rising level of confidence among the entrepreneurs about the country’s future industrial prospects,” a senior official of the Bangladesh Bank (BB) said, adding that the upward trend of capital machinery imports would continue if the government ensures adequate supplies of gas and power, particularly in the industrial units.
Most of the import orders for capital machinery were placed from different sectors including textiles, readymade garments, pharmaceuticals, packaging and jute industries the central bank official said quoting the latest figures.
The country’s export grew by 29.98 per cent to $5.029 billion in Q1 of FY11 against $3.869 billion in the corresponding period of the pervious fiscal year, the BB’s data showed.
BBN/SSR/SI-07Nov10-10:31 am (BST)
