FY15 starts with negative import growth: BB:Daily Sun

  The current 2014-15 financial year started with a negative growth in imports except for the industrial raw materials category, according to Bangladesh Bank (BB) data. In the monthly review of July, the central bank has identified the highest negative growth in imports of petroleum and petroleum products followed by machinery for miscellaneous industries, intermediate goods, consumer goods and ca
pital machinery. In July, the maiden month of FY 2014-15, imports of industrial raw materials grew slightly by $65.74 million; which totaled to $1272.52 million, up from $1206.78 million in July last year. Meanwhile, imports of petroleum and petroleum products decreased by $263.97 million, imports of machinery for miscellaneous industries plunged by $131.81 million, intermediate goods import fell by $119.54 million, consumer goods import declined by $24.15 million and capital machinery saw a fall in imports by $22.64 million in July compared to the same period last FY, according to BB data. The total import volume based on the opening of fresh letters of credit (LCs) stood at $3655.65 million in the first month of the current FY, down from $3717.75 million in the same period a year ago, BB data show. On the other hand, total import payments in July (2014) plunged by $329.60 million or 9.48 percent to reach $3147.80 million from $3477.40 million during the same month of the preceding year. The country imported products worth $40.69 billion in FY 14, posting a 19.39 percent growth over the total import bills of $34.08 billion in FY 13. According to the BB review, opening of import LCs and probable liabilities of banks against back to back LCs have been estimated by the scheduled banks at $10499.72 million and $3466.32 million respectively during the September-November (2014) period. The country’s export income amounted at $30.5 billion last FY with the highest contribution from the garment industry that frequently needs import of raw materials and capital machinery. Industry insiders say raw material import will rise in the days to come as the apparel sector may see a boost backed by the reforms initiated after the Rana Plaza collapse. Two major initiatives of Bangladesh’s apparel buyer community – the Alliance back by North American buyers group and Accord backed by European buyers—have been working to improve the safety conditions in Bangladesh’s RMG sector. Sources said the joint endeavors have already started contributing to the government’s efforts to make the RMG sector more stable and attract more buyers to source apparel products from Bangladesh.