67 per cent decline in LCs for capital machinery imports in Bangladesh: Reports

[Homo Sapiens]

67 per cent decline in LCs for capital machinery imports in Bangladesh: Reports​

by Apparel Resources News-Desk 27-February-2023 | 1 min read
Image Courtesy: https://www.wsj.com

The capital machinery imports have dropped drastically in Bangladesh thanks to difficulties faced in opening letters of credit (LC) to bring commodities from overseas even as in the first seven months (July-January) of the current 2022-23 fiscal year there has been a massive 67 per cent decline in LCs for capital machinery imports compared to the corresponding period of the previous year.

Media reports maintained this adding according to the reports of Bangladesh Bank, which is the central bank of Bangladesh, the import of capital machinery in the July-January period of the current fiscal year stood at US $ 1.41 billion, which is 66.83 per cent less than the imports of US $ 4.25 billion in the same period of fiscal year 2021-22.

Meanwhile, speaking to the media, traders reportedly underlined the decline in capital equipment imports reflects a decline in new investment in the industry even if it brings down industrial production and hits the employment generation hard because when there is no increase in industrial investment, new employment opportunities are difficult to create.

67 per cent decline in LCs for capital machinery imports in Bangladesh: Reports | Trade Data News Bangladesh

Capital machinery imports drop drastically in Bangladesh.

apparelresources.com

 

[mb444]

This is terrible news. The impact of the credit crunch is coming through in numbers. This needs to be tackled quickly.

BD needs to facilitate LC opening as soon as possible. Release bonds and savings instruments for BD expats in USD as a quick win and be serious about blocking hundi which are openly run by BAL.

 

[bluesky]

67 per cent decline in LCs for capital machinery imports in Bangladesh: Reports​

by Apparel Resources News-Desk 27-February-2023 | 1 min read
Image Courtesy: https://www.wsj.com

The capital machinery imports have dropped drastically in Bangladesh thanks to difficulties faced in opening letters of credit (LC) to bring commodities from overseas even as in the first seven months (July-January) of the current 2022-23 fiscal year there has been a massive 67 per cent decline in LCs for capital machinery imports compared to the corresponding period of the previous year.

Media reports maintained this adding according to the reports of Bangladesh Bank, which is the central bank of Bangladesh, the import of capital machinery in the July-January period of the current fiscal year stood at US $ 1.41 billion, which is 66.83 per cent less than the imports of US $ 4.25 billion in the same period of fiscal year 2021-22.

Meanwhile, speaking to the media, traders reportedly underlined the decline in capital equipment imports reflects a decline in new investment in the industry even if it brings down industrial production and hits the employment generation hard because when there is no increase in industrial investment, new employment opportunities are difficult to create.

67 per cent decline in LCs for capital machinery imports in Bangladesh: Reports | Trade Data News Bangladesh

Capital machinery imports drop drastically in Bangladesh.

apparelresources.com

Less import of capital machinery means less industrial development. Not a good thing. But the govt has to pay back the loan money in a priority.

So, the country will have wait for industrial development.