Bangladesh’s import payments surged by around 54 percent in the first five months of the current fiscal year compared to the corresponding period of last year – indicating a strong and steady economic recovery in keeping with a sharp fall in coronavirus infections.
Import bills in July-November swelled 53.74 percent year-on-year to $30.3 billion, according to the latest data of the Bangladesh Bank. With nations facing the pandemic funk, the settlement of Letters of Credit (LC), also known as actual import payments, in the corresponding period last year stood at $19.72 billion.
Imports of yarn, capital machinery and intermediate goods had a major contribution to the bills, which means production lines are alive and kicking and there has been a strong consumer demand at home.
However, spiraling commodity prices in the international market and spiked shipping cost pushed up the import payments.
In the first five months of this fiscal year capital machinery import saw 30 percent growth, the central bank’s latest data show. During the period import growth of intermediate goods was 70 percent, chemical fertilizer 105 percent, yarn 103 percent and drugs and medicines more than 1,000 percent.
In July-November, there had been around 13,779 percent rise in LCs opening for rice import as the government allowed bringing in the food staple from foreign markets. However, the upswing put a less significant $340 million mark to the bills.
At the same time, LCs opening for sugar increased by more than 100 percent and refined edible oil by 81 percent.
The country saw 31.86 percent fall in LC opening for onion, 1.35 percent for pulses and 8.92 percent for dairy items.
