The country's overall imports grew by more than 8.0 per cent in the first quarter (Q1) of the current fiscal year (FY), 2018-19, following a 78.62 per cent increase in fuel oil import, officials said.
The actual import in terms of settlement of letters of credit (LCs) rose to US$ 12.83 billion during the July-September period of FY 19. It was $11.83 billion in the same period of the previous fiscal, according to the central bank's statistics.
But opening of LCs, generally known as import orders, increased by only 0.35 per cent to $14.75 billion in Q1 of FY 19 from $14.70 billion in the corresponding period of FY 18.
Talking to the FE, a senior official of Bangladesh Bank (BB) said the overall import payments increased during the period under review mainly due to higher import of petroleum products.
"The upward trend in fuel oil imports may continue in the coming months also following diversified use of the gasoline products, particularly for power generation," the central banker explained.
Import of petroleum products rose to $1.07 billion in the first three months of FY 19 from $597.77 million in the same period of the previous fiscal.
Currently, around 50 power plants out of the total 122 across the country are running with fuel oil.
On the other hand, import of capital machinery or industrial equipment used for production, dropped by 3.39 per cent to $1.24 billion from $1.29 billion, the BB data showed.
"The falling trend in capital machinery import may continue in the coming months ahead of the upcoming general election," another BB official added.
Most of the businessmen are now adopting a 'wait-and-see' policy in setting up fresh industrial units or expanding their existing businesses, the official added.
However, import of intermediate goods, like - coal, hard coke, clinker and scrap vessels etc, increased by 21.31 per cent to $1.09 billion in Q1 from $899.16 million.
Industrial raw material import also rose by 11.44 per cent to $4.70 billion during the period under review from $4.21 billion in the same period of FY 18.
"Higher import of petroleum products may continue in the coming months following a rising trend in both prices and quantity," Syed Mahbubur Rahman, chairman of Association of Bankers, Bangladesh (ABB), told the FE.
Despite a falling trend in consumer goods, imports of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) have pushed up the overall import expenses of Bangladesh, added Mr. Rahman, also managing director (MD) and chief executive officer (CEO) of Dhaka Bank Limited.
Echoing the BB official, the ABB chief also said the existing downward trend in capital machinery import may continue ahead of the next general election.
However, import of food grains, particularly of rice and wheat, dropped by 45.65 per cent to $303.56 million from $558.57 million.
Import of consumer goods decreased by 28.16 per cent to $1.24 billion during the period under review from $1.72 billion, the BB data showed.
