Record export earnings even after Ukraine war; remittance flows have increased, yet imports of goods have been hampered throughout the year due to the dollar crisis.
Entrepreneurs could not bring the necessary raw materials from abroad due to LC complications. Industrial production has been affected. Commodity prices were on the rise due to reduced supply in the international market. Although the government agencies have taken various initiatives to reduce the price of goods, the suffering of the common people has not decreased.
Last November, the country's export earnings, based on garment exports, achieved a milestone of USD 5 billion. According to EPB data, export revenue of $5.09 billion was earned last month.
In the history of Bangladesh, such a large amount of export income has never come in a single month. Earlier, the highest export record in a month was $4.9 billion. This record was set in December last year. That record was broken in November this year.
Due to the Ukraine war and energy crisis, where the country's factories are worried about increasing production, the fact that the record amount of export income has been achieved has not had any impact on the economy. Rather, they consider the issue of import LC complications due to the dollar crunch as an 'ominous sign' for a manufacturing-oriented economy.
Recently, in the meeting of the advisory committee of the Ministry of Commerce, traders have expressed their concern about LC complications. Requesting the government to remove LC complications to keep the supply of consumer goods normal in the coming Ramadan, traders said that if this crisis is not resolved, the import of consumer goods will be hampered.
Sources said, a representative of a consumer goods import and processing company said in the meeting that their company opened a LC of 29.6 million dollars but could not fulfill it. As a result, they are unable to import essential products.
Businessmen also complained that LCs of many companies in Bangladesh are being cancelled. In the meeting, ICCB President Mahbubur Rahman requested the government to remove LC complications and keep the import-export trade normal.
FBCCI former president Shafiul Alam Mohiuddin expressed anger over LC complications and said, LCs cannot be closed on the pretext of money laundering. Those who launder money should be identified and punished. However, easy LC should be provided.
Commerce Minister Tipu Munshi said that he has written to Bangladesh Bank to open LC for import of consumer goods in compliance with the demands of traders.
Tapan Kanti Ghosh, senior secretary of the Ministry of Commerce said, knowing the concerns of traders, a letter has been written to Bangladesh Bank to provide maximum support to imports to ensure price control and supply of daily necessities. The letter asked to simplify the LC for import of goods.
The central bank has directed the banks to open LCs for oil, sugar, pulses to ensure that there is no shortage of any commodity during Ramzan and that prices remain stable.
Sources said, keeping the LC margin or cash deposit at a minimum level for the import of 8 products including oil, sugar, chickpeas, dates and giving the opportunity to import these products within 90 days, Bangladesh Bank recently issued two notifications.
In another notice, rice and wheat were added to the list of concessions in LC margin. Traders say that these benefits are already there in the case of importing consumer goods.
Their demand is not only to discount the margin, but also to ensure that the importers get the necessary dollars while doing LC with the banks.
@The report was published on print and online versions of The Bangladesh Pratidin on December 26 and rewritten in English by Tanvir Raihan
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