As the situation surrounding COVID-19 improves, imports of various products are increasing at an unprecedented rate. According to the Bangladesh Bank, the overall import of goods increased by a record 47% in the first three months of the current fiscal year. And the number of new LC openings has increased by about 49.5%. During this period, imports of all industries including capital equipment for setting up new industries, raw materials, and intermediate products of industries, fuel oil, and food products have increased. This information has been found in the review report of Bangladesh Bank.
Entrepreneurs are showing interest in new investments as well as expanding existing businesses as the pandemic situation improves. Due to this, the import of capital equipment has increased significantly. Besides, imports of industrial raw materials and intermediate products have also increased due to an increase in exports.
Since last April, the number of capital equipment LCs has been increasing. From July, LC settlement and imports started increasing. In total, capital equipment worth 93 crore and 75 lac dollars were imported in the first three months of the current fiscal year. This is 18.81% more than the same period last year.
On the other hand, new LCs of capital equipment worth 138 crore and 64 lac dollars have been opened at the same time. This is 33.28% more than the same period last fiscal year. However, the highest increase in imports is of intermediate industrial products. In the first three months of the fiscal year, 151 crore and 74 lac dollars’ worth of these products were imported. This is 71.77% more than the same period last fiscal year.
According to the report, industrial raw materials worth 647 crore and 27 lac dollars were imported. This is 49% more than the same period last fiscal year. At the same time, the opening of new LCs for this product has increased by about 51%. In the first three months of the current fiscal year, new LCs for this product worth 720 crore and 43 lac dollars have been opened. In the first three months of the fiscal year, food imports increased by 37.14% and the rate of new LC openings increased by 67.25%. At the same time, imports of fuel oil increased by 59.58% and new LC openings rose by a record 70.40%.
After COVID-19 struck the country, all kinds of economic activities, including trade and commerce, came to a near standstill during the 66 days-long general holiday from the end of March last year. Imports and exports also declined at an alarming rate due to the closure of factories at that time. In the meantime, the government has announced incentive packages of Tk 1.5 lac crore in various sectors to deal with the losses caused by COVID-19. Along with that, everything was opened from May 30. From then on, the pace of import-export and trade began to pick up. Then the second wave of COVID-19 struck. Trade and commerce came to a standstill again. But now the situation in the world, including Bangladesh, has become much more normal. As a result, the demand for all kinds of products has increased domestically and internationally. Hence, businessmen and industrialists have become interested in new investments as well as existing ones. That is why the import of all kinds of industrial raw materials, intermediate goods, and capital equipment is increasing.
Not only imports but also the growth of credit in the private sector is increasing slowly. According to the Bangladesh Bank, the annual credit growth till June of the last fiscal year was 8.35%. Till last September (annual) it has increased to 8.77%.
Meanwhile, the price of the dollar rose further in the interbank market due to import pressure. After remaining stable for the last four working days, the dollar rose by five Paisa against the Taka on Sunday. On that day, importers had to pay 85 Taka and 75 Paisa per dollar.
