Imports jump 48% in 10 months of FY22

Bangladesh’s imports have jumped by 48.25 per cent in the first ten months of this fiscal year thanks to the higher imports of fuel oils and industrial raw materials.

The settlement of letters of credit (LCs), generally known as actual import, in terms of value, rose by 48.25 per cent to $67.86billion during the July-April period of fiscal 2021-22, from $45.77 billion in the same period a year ago, the latest data from the Bangladesh Bank showed.

Import payment rose significantly due to the price hike of essential commodities including fuel oil in the international market created by the ongoing Russia-Ukraine war, said industry insiders.

The import bill payment continued to rise despite the central bank’s tightening rules on imports.  On April 11, the BB imposed a minimum 25 per cent cash LC margin on all imports excepting some essential items, aiming to ease import payment pressure on the economy.

However, bankers said that the import payment may decline in the upcoming months as the BB tightened rules on importing luxury and non-essential products. The central bank toughened its import rules for luxury items on May 10, a day after the government decided to stop foreign trips of its officials and postponed the implementation of less important projects that require imports. Growing import payments have put pressure on the foreign exchange market, resulting in 3.65 per cent devaluation of taka against the US dollar in the last ten months.