Investors are hesitant to commit to new investments until the law and order situation improves. In the past two months, letters of credit for importing capital machinery dropped by 44%, and the import of intermediate goods also decreased. Economists argue that restoring investor confidence and achieving economic stability is crucial, highlighting the need for reforms. The business environment has been unstable due to student protests, political changes, floods, and unrest in the garment sector. Data shows that in July-August, import letters of credit for capital machinery totaled $285.6 million, a 44% decrease from the previous year. While LC for raw materials increased, LC for intermediate goods fell by about 10%. Overall, letters of credit for imports declined by around 13% during this period. Business owners are concerned that ongoing violence in industrial areas could worsen the situation, urging improvements in law and order and special facilities for loan repayments. Despite increasing remittances and stable dollar rates, as well as relaxed import restrictions, investors hope for improved conditions to boost imports.
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