Imports for the manufacturing sector in Bangladesh, in the first 4 months of the current fiscal year, have marked a decline.
As per media reports, in the said period (July-October), imports of raw materials and capital machinery for major industries like textiles have plummeted significantly with import of capital machinery falling 31 per cent to US $ 1.08 billion.
Meanwhile, raw cotton imports stood at US $ 814 million in the first 4 months, down 24.24 per cent year-on-year even as import of staple fibre fell to US $ 267 million in contrast to US $ 393 million a year ago.
It may be mentioned here that raw cotton is one of the major raw materials for the apparel industry, which accounts for about 85 per cent of Bangladesh’s total exports.
The sluggishness in imports for the textile and garment sectors is not a good sign, reportedly, underlined Director of the Bangladesh Garment Manufacturer and Exporters Association (BGMEA), Asif Ibrahim to the media while adding that the second wave of the coronavirus pandemic has already hit the world and the industrial sector is faced with many challenges due to the business slowdown.
Meanwhile, citing data from the central bank, reports maintained that Bangladesh’s export earnings in the first 4 months of the fiscal year grew only 1.1 per cent to US $ 12.5 billion even as earnings from garment exports fell 1.2 per cent year-on-year US $ 10.45 billion in the July-October period of the fiscal year.
Exports may fall further as the second wave of coronavirus has already started in America and Europe, reportedly underlined former lead economist of the World Bank’s Dhaka office, Zahid Hussain, while adding sustainable economic recovery from the recession for the 6 months looks difficult.
