Scrap vessel imports drop to a 4 year low in 2022

The government's efforts to manage a shortage of foreign currency have led to an 18% decline in imports during the first two months of the fiscal year 2023-24. Economists and businesses are concerned about the downstream economic impacts, including supply chain disruptions.

The Bangladeshi government is taking urgent measures to address a severe saline crisis in hospitals resulting from a widespread dengue outbreak. They plan to import 20 lakh (2 million) saline bags at a cost of Tk29.19 crore. The demand for saline has surged by 5 to 7 times due to the outbreak, and local suppliers can only meet a fraction of it, leading to inflated prices for patients, with a Tk500 price tag compared to the actual cost of Tk100.

Importers are grappling with rising LC (letter of credit) confirmation fees charged by foreign banks, primarily due to the country's fragile banking sector. The fees have surged from 1.7%-2% in June last year (2022) to 3.5% of the import value on LCs per year.

Edible oil imports in Bangladesh have witnessed a substantial decline, plummeting by 40% in the past fiscal year alone, as per data from the Import Promotion Bureau (EPB) and the National Board of Revenue (NBR). In the 2022-23 fiscal year, imports amounted to 103,000 tons, generating approximately $130 million in foreign currency earnings. This marks a stark contrast to the preceding year, where 151,000 tons of oil were imported, contributing $230 million in foreign currency earnings,

Bangladesh maintains higher average nominal tariffs compared to low-income, middle-income, and high-income countries, as well as most peers, according to an economist. These elevated tariffs, with a nominal rate of 27.6%, create a relative advantage for domestic industries over exports.

Bangladesh witnessed a decline in capital machinery and intermediate goods imports during the last fiscal year, reflecting a slowdown in both private investment and the economy. The drop is attributed to a prolonged dollar crisis, elevated inflation impacting consumer purchasing power, and increased political uncertainty ahead of the upcoming parliamentary election.