Import expenditure has fallen in the last six months with export income becoming sluggish along with a lethargic flow of foreign remittance. As per the latest information of Bangladesh Bank, in November last, import faced a negative growth and compared to November 2017, import expenditure in November 2018 has reduced by 2.69 per cent.
Bangladesh Bank report says in November 2018, import expenditure was $5.08 billion whereas, at the same time last year, it was $5.22 billion.
Economists say that import expenditure fell due to national elections. Agrani Bank chairman, Dr Zaed Bakht, told Bangla Tribune, “Keeping the elections in view, many businessmen did not go into production which had a negative impact on imports.”
He also pointed to the rise of Dollar rate against the Taka as a reason.
“Due to the increase of the price of Dollar, import expenditure goes up, which discourages import.”
The main reason for the fall in import expenditure is now the government does not have to import food.
As per Bangladesh Bank information, import between July-November 2018-19 was Tk 2.37 billion and in the same period, income from export was Tk 14.56 billion.
According to Bangladesh Bank accounts, in 2017-18, import to Bangladesh was Tk 54.46 billion, which was 25.23 percent more than the previous fiscal.
Remittance sent by expatriates in November 2018 was 3 percent lower than the amount sent in the same period the previous year. This November, remittance was $1.18 billion which was $1.221 billion.
Bangladesh Bank spokesperson, Sirajul Islam, told Bangla Tribune, “Remittance has come back to a positive trend due to efforts by Bangladesh Bank.”
Meanwhile, in July-November of this fiscal, the fiscal deficit stands at $2.56 billion which was $4.74 last year.