Import LC Opening Declines by 26.80% in FY23

Bangladesh has witnessed a positive trend in goods imports from January to April 24 this year compared to the same period last year, despite the government's measures to control imports. The import of goods increased by 5.77% to 45.8 million tonnes, while the import cost rose by 6.23% to $24.03 billion. Imports of raw materials for the textile, steel, animal feed, consumer goods, wheat, coal, and plastic

The opening and settlement of import Letters of Credit (LCs) surged in March compared to February, attributed to improved dollar liquidity in the banking sector. Banks opened import LCs totaling $6.13 billion in March, a 17% increase from February's $5.28 billion, marking one of the few instances where monthly LC openings exceeded $6 billion over the past year. A private bank official cited robust exports

The relationship between Bangladesh and Qatar has evolved significantly since the year 2000, with substantial growth in bilateral trade, energy cooperation, and diplomatic ties. Initially, Bangladesh's exports to Qatar were modest, valued at about $2.4 million in 2000, while imports stood at $4.5 million. However, over the years, Qatar has emerged as a key trade partner for Bangladesh, particularly in the energy sector.

Despite the government's implementation of import restrictions on luxury items and other policies aimed at alleviating the dollar shortage and economic crisis, the situation has yet to improve. Since April 2022, the Bangladesh Bank has enforced stringent measures, including imposing a 100% margin on the import of non-essential goods such as vehicles and luxury items. Additionally,

Bangladesh witnesses a gradual recovery in capital machinery imports. Data from Bangladesh Bank shows a 3% year-on-year growth in LC openings for capital machinery, reaching $1,557 million in the July-January period of the current fiscal year 2023-24.

Despite decreased raw material imports for the readymade garment (RMG) industry in Bangladesh, export earnings have remained steady from July FY23 to Dec FY24, as per Export Promotion Bureau (EPB) data. RMG sector exports grew by 1.72% to $23.39 billion in H1 FY24 and by 10.27% to $46.99 billion in FY23, despite a 17.3% and 22.20% decline in raw material imports in FY24 and FY23 respectively.