http://www.newagebd.com/detail.php?date=2012-09-08&nid=22907
Import of capital machinery falls sharply in July
AKM Zamir Uddin
The import of capital machinery declined drastically in the first month of the current financial year compared with that of the same month in the last financial year due to a slow growth of investment in the industrial sector, said Bangladesh Bank officials.
According to the BB data released on Thursday, the settlement of letters of credit or actual import payments for the product registered a negative growth of 9.81 per cent in July of the FY 13compared to that of a positive growth of 68.28 per cent in the same month of FY 12.
BB data showed that the settlement of LCs for the items had stood at $197.34 million in July against that of $218.80 million in the first month of FY 12. The import payment for capital machinery was $130.02 million in July of FY 11.
LC opening for the capital machinery in July also posted a negative growth of 29.39 per cent compared with 1.39 per cent growth in the same period of the previous financial year. LCs for $156.96 million was opened for the import of capital machinery in July of FY 13 against $222.28 opened in the corresponding period of the last financial year.
A BB official told New Age on Thursday that the import of capital machinery had drastically decreased in July as the businessmen were reluctant to invest more in the industrial sector.
Higher interest rate of the banks’ loans is one of vital causes of the reluctance in investment in the sector, he said.
On the other hand, the commercial banks can not be providing sufficient credits to the industrial sector as per requirements from the businessmen due to a severe liquidity crisis in the financial sector, he said.
In these circumstances, the country’s industrialisation process may be hampered in the coming months, he said. The growth in overall import payment in July of the FY 13 also declined sharply compared with that of the same month of FY 12.
BB data showed that growth in the settlement of letters of credit for all products increased to only 1.65 per cent in July of the FY 13 compared with that of 33.02 per cent growth in the same period of FY 12.
Settlement of LCs for all items totalled $2.83 billion in July against that of $2.79 billion in the first month of FY 12. The import payment was $2.09 billion in July of the FY 11. BB data showed that settlement of letters of credit for food grains specially rice and wheat had registered a negative growth of 63.62 per cent and for industrial raw materials increased to 18.36 per cent in July of the current financial year compared with that of 173.88 per cent and 8.09 per cent growth respectively in the same period of FY 12.
Settlement of LCs for the items totalled $1.24 billion in July against that of $1.17 billion in the first month of FY 12. BB data showed that growth in LC settlement for petroleum products also registered a negative growth of 9.49 per cent in July compared with that of 162.26 per cent growth in the same period of FY 12.
The payment of import bills for petroleum products in July was worth $329.97 million against $364.58 million in the same month of the previous financial year, BB data showed.
Import of capital machinery falls sharply in July
AKM Zamir Uddin
The import of capital machinery declined drastically in the first month of the current financial year compared with that of the same month in the last financial year due to a slow growth of investment in the industrial sector, said Bangladesh Bank officials.
According to the BB data released on Thursday, the settlement of letters of credit or actual import payments for the product registered a negative growth of 9.81 per cent in July of the FY 13compared to that of a positive growth of 68.28 per cent in the same month of FY 12.
BB data showed that the settlement of LCs for the items had stood at $197.34 million in July against that of $218.80 million in the first month of FY 12. The import payment for capital machinery was $130.02 million in July of FY 11.
LC opening for the capital machinery in July also posted a negative growth of 29.39 per cent compared with 1.39 per cent growth in the same period of the previous financial year. LCs for $156.96 million was opened for the import of capital machinery in July of FY 13 against $222.28 opened in the corresponding period of the last financial year.
A BB official told New Age on Thursday that the import of capital machinery had drastically decreased in July as the businessmen were reluctant to invest more in the industrial sector.
Higher interest rate of the banks’ loans is one of vital causes of the reluctance in investment in the sector, he said.
On the other hand, the commercial banks can not be providing sufficient credits to the industrial sector as per requirements from the businessmen due to a severe liquidity crisis in the financial sector, he said.
In these circumstances, the country’s industrialisation process may be hampered in the coming months, he said. The growth in overall import payment in July of the FY 13 also declined sharply compared with that of the same month of FY 12.
BB data showed that growth in the settlement of letters of credit for all products increased to only 1.65 per cent in July of the FY 13 compared with that of 33.02 per cent growth in the same period of FY 12.
Settlement of LCs for all items totalled $2.83 billion in July against that of $2.79 billion in the first month of FY 12. The import payment was $2.09 billion in July of the FY 11. BB data showed that settlement of letters of credit for food grains specially rice and wheat had registered a negative growth of 63.62 per cent and for industrial raw materials increased to 18.36 per cent in July of the current financial year compared with that of 173.88 per cent and 8.09 per cent growth respectively in the same period of FY 12.
Settlement of LCs for the items totalled $1.24 billion in July against that of $1.17 billion in the first month of FY 12. BB data showed that growth in LC settlement for petroleum products also registered a negative growth of 9.49 per cent in July compared with that of 162.26 per cent growth in the same period of FY 12.
The payment of import bills for petroleum products in July was worth $329.97 million against $364.58 million in the same month of the previous financial year, BB data showed.
