Goods worth $83.68b imported through LCs in FY’22

[bluesky]

Goods worth $83.68b imported through LCs in FY’22

Goods worth $83.68 billion were imported into Bangladesh through letters of credit (LCs) in the last fiscal year, according to recent import data released by Bangladesh Bank. The central bank data shows the amount is a massive 46 per cent jump from the previous fiscal year, reports bdnews24.com.

thefinancialexpress.com.bd

Goods worth $83.68b imported through LCs in FY’22​

Published: July 25, 2022 23:25:34

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Goods worth $83.68 billion were imported into Bangladesh through letters of credit (LCs) in the last fiscal year, according to recent import data released by Bangladesh Bank.

The central bank data shows the amount is a massive 46 per cent jump from the previous fiscal year, reports bdnews24.com.
Importers in Bangladesh had opened LCs worth $92.23 billion to import goods in the fiscal year 2021-22, which is 37.59 percent more than the previous fiscal year.

In the financial year 2020-21, $67 billion worth of LCs were opened, while products worth $57.25 billion were imported. LC settlement rate has increased by 7.52 per cent in the last fiscal year compared to the previous year.

It takes up to 45 days for the goods to arrive in the country after opening the LC for import. After the arrival of the goods, the importer makes the payment in foreign currency through the concerned bank, which is called LC settlement.

Some importers also directly bring in products without an LC. Bangladesh Bank has yet to release the data.

As a result, the complete picture of how much goods were imported in the last fiscal year is yet to be made public.

 

[Homo Sapiens]

Some importers also directly bring in products without an LC. Bangladesh Bank has yet to release the data.

As a result, the complete picture of how much goods were imported in the last fiscal year is yet to be made public.

It will reach $90 billion after getting the complete picture.

 

[mb444]

I want a break down of what we are importing.... where its fuel and staple food... inflation acceptable and import necessary, we just have to deal with it.

Where its raw goods for our industries such as cotton...well these will turn into exports or revenue soon enough.

Where its capital goods, again they will contribute to GDP down the line so no issues.

What i really want to know is the value of imports for luxury goods, foods and other non essentials. BoB should imediately cancel all LCs. Let the importers source their hard currency in the open market.

 

[Rushd Alam]

I want a break down of what we are importing.... where its fuel and staple food... inflation acceptable and import necessary, we just have to deal with it.

Where its raw goods for our industries such as cotton...well these will turn into exports or revenue soon enough.

Where its capital goods, again they will contribute to GDP down the line so no issues.

What i really want to know is the value of imports for luxury goods, foods and other non essentials. BoB should imediately cancel all LCs. Let the importers source their hard currency in the open market.

I wish I could agree, but the world economic projection by IMF WB gives a grim picture, I was going through some articles an things are going to turn bad to worse in 2023. Tough times are ahead of us. World inflation is all time high, on top energy shortage, decreasing food production, 2023 will be tough.

Our dependency on imported fuel then further plans to import coal from foreign sources will kill us in these tough time.

Government need to rethink about the energy security, make proper decision on existing coal mining, spend big money on gas exploration from now our we will face some big crisis soon. These are tough times, today LNG is around $46, tomorrow it may hit new heights. We wont be able to compete with europe in LNG import. They can afford higher price gas but our industries will die.

As I was saying previously about our energy policy now hear from an expert.

One thing we never mention is how our industry is very competitive, it is because we had our own gas which costed us $1-3 cft. Our compititor Vietnam has their own oil so do Indonesia. We unfortunately cant compete in world market with impored LNG or imported coal which may become more expensive. It will be a very stupid decision to destroy our industry because of energy crisis when we ourselves are sitting on coal and gas.

Hopefully PM will make tough decision on the LNG lobbyists and not listen to the current minister our . Its about her Governments survival, It has been a smooth ride till now when the world economy was good but if we face even a small crisis then our things may turn sour very quickly.

Irony is where we should have been a fuel exporter, unfortunately today we are struggling with cost of fuel import. But its still not too late.

 

[bluesky]

It will reach $90 billion after getting the complete picture.

I am surprised to read in the OP news that the importers have opened L/ Cs worth 92.23 billion dollars in the last fiscal.

I wish much of the imports involve importing of factory machines. Machines are capital goods that will produce goods for many years to come.

 

[hydrabadi_arab]

Break down of imports?

 

[Indos]

Break down of imports?

Last year data

Products Causing Bangladesh’s Worst Trade Deficits​

Overall Bangladesh incurred an estimated -$17.3 billion trade deficit during 2021, increasing by 118.7% from -$7.9 billion for 2020.

Below are exports from Bangladesh that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Bangladesh’s goods trail Bangladeshi importer spending on foreign products.

1. Cotton: -US$8.3 billion (Up by 57.2% since 2020)
2. Mineral fuels including oil: -$6.8 billion (Up by 49%)
3. Machinery including computers: -$6.5 billion (Up by 35.2%)
4. Electrical machinery, equipment: -$4.4 billion (Up by 29.1%)
5. Iron, steel: -$3.7 billion (Up by 56.1%)
6. Cereals: -$3.4 billion (Up by 95.6%)
7. Plastics, plastic articles: -$3 billion (Up by 40.8%)
8. Animal/vegetable fats, oils, waxes: -$2.2 billion (Up by 71.4%)
9. Knit or crochet fabric: -$2.1 billion (Up by 54%)
10. Manmade staple fibers: -$1.9 billion (Up by 39.8%)

Bangladesh has highly negative net exports and therefore deep international trade deficits for cotton, an essential ingredient for clothing thus taking advantage of Bangladesh’s relatively low worker costs.

Bangladesh’s Top Exports 2023

Bangladesh’s major exports in 2023 plus main product surpluses & deficits

www.worldstopexports.com

 

[bluesky]

1. Cereals: -$3.4 billion (Up by 95.6%)
2. Plastics, plastic articles: -$3 billion (Up by 40.8%)
3. Animal/vegetable fats, oils, waxes: -$2.2 billion (Up by 71.4%)

Bangladesh failed to produce enough food in the country. So, the import was $3.4 billion. Too high a price BD is paying. It is time BD produces foods more than it needs. It has a staggering 21 million acres of arable land.

It was general Moeen who brought palm oil seeds and took the initiative to plant palm trees in the country. For some unknown reasons, the BAL govt wants its party cronies to import this item as well as food (from India).

 

[Valar.]

It has a staggering 21 million acres of arable land.

Not an expert, but I think just because someone has arable land does not mean you can cultivate every variety of food.

 

[mb444]

I wish I could agree, but the world economic projection by IMF WB gives a grim picture, I was going through some articles an things are going to turn bad to worse in 2023. Tough times are ahead of us. World inflation is all time high, on top energy shortage, decreasing food production, 2023 will be tough.

Our dependency on imported fuel then further plans to import coal from foreign sources will kill us in these tough time.

Government need to rethink about the energy security, make proper decision on existing coal mining, spend big money on gas exploration from now our we will face some big crisis soon. These are tough times, today LNG is around $46, tomorrow it may hit new heights. We wont be able to compete with europe in LNG import. They can afford higher price gas but our industries will die.

As I was saying previously about our energy policy now hear from an expert.

One thing we never mention is how our industry is very competitive, it is because we had our own gas which costed us $1-3 cft. Our compititor Vietnam has their own oil so do Indonesia. We unfortunately cant compete in world market with impored LNG or imported coal which may become more expensive. It will be a very stupid decision to destroy our industry because of energy crisis when we ourselves are sitting on coal and gas.

Hopefully PM will make tough decision on the LNG lobbyists and not listen to the current minister our . Its about her Governments survival, It has been a smooth ride till now when the world economy was good but if we face even a small crisis then our things may turn sour very quickly.

Irony is where we should have been a fuel exporter, unfortunately today we are struggling with cost of fuel import. But its still not too late.

You make good points... but LNG spot prices are starting to fall

 

[bluesky]

Not an expert, but I think just because someone has arable land does not mean you can cultivate every variety of food.

But, the watery BD land can certainly produce a quantity of rice that can feed at least 350 million mouths. Check the truth of my statement first by studying the success stories of Japan, Taiwan, and now China. If the surplus is exported cannot this export money import foods like onions, wheat, or corn?

On the other hand, if the mid to south wetlands are exclusively used to produce rice that will feed our 170 million people, it is then possible to produce onions, wheat, corn, and other food items in the northwestern divisions of Rajshahi and Rangpur in winter.

The northwest is dry in winter and good for these crops. Instead, we have been following the same agricultural policy that our forefathers did 1000 years ago which is SUBSISTENCE FARMING instead of COMMERCIAL FARMING.

 

[Rushd Alam]

You make good points... but LNG spot prices are starting to fall

Bro even if it becomes $15 still it will be 3 times more expensive then our owwn gas. Will our induatries be competitive?

 

[fallstuff]

Last year data

Products Causing Bangladesh’s Worst Trade Deficits​

Overall Bangladesh incurred an estimated -$17.3 billion trade deficit during 2021, increasing by 118.7% from -$7.9 billion for 2020.

Below are exports from Bangladesh that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Bangladesh’s goods trail Bangladeshi importer spending on foreign products.

1. Cotton: -US$8.3 billion (Up by 57.2% since 2020)
2. Mineral fuels including oil: -$6.8 billion (Up by 49%)
3. Machinery including computers: -$6.5 billion (Up by 35.2%)
4. Electrical machinery, equipment: -$4.4 billion (Up by 29.1%)
5. Iron, steel: -$3.7 billion (Up by 56.1%)
6. Cereals: -$3.4 billion (Up by 95.6%)
7. Plastics, plastic articles: -$3 billion (Up by 40.8%)
8. Animal/vegetable fats, oils, waxes: -$2.2 billion (Up by 71.4%)
9. Knit or crochet fabric: -$2.1 billion (Up by 54%)
10. Manmade staple fibers: -$1.9 billion (Up by 39.8%)

Bangladesh has highly negative net exports and therefore deep international trade deficits for cotton, an essential ingredient for clothing thus taking advantage of Bangladesh’s relatively low worker costs.

Bangladesh’s Top Exports 2023

Bangladesh’s major exports in 2023 plus main product surpluses & deficits

www.worldstopexports.com

Has someone tried adding the total of key imports ? If I eyeball it I get just over $42 billion.
So other smaller imports are costing another $45 billion ?
Does anyone have any information about the discrepancy ?

 

[Indos]

Has someone tried adding the total of key imports ? If I eyeball it I get just over $42 billion.
So other smaller imports are costing another $45 billion ?
Does anyone have any information about the discrepancy ?

That was last year, and yes there will be large small items that if being accumulated will be quite big. This year trade data will be shown in 2023 June-July.

Some time the website open all data so we can look on the small items, but mostly they close the detail data and we should pay to get it

You make good points... but LNG spot prices are starting to fall

LNG will likely remain high as long as trade war between Western countries vs Russia still persists. Western countries will replace natural gas from Russia by LNG or coal, this will of course pressure LNG price up

 

[bluesky]

It will reach $90 billion after getting the complete picture.

It means, more dollars will go to foreign shores.

I have been telling people for almost a decade that an aspiring country must build industries to reduce imports of industrial goods.

But the BAL govt kept on building infrastructure projects with loan money. Now many people have excessive liquid money and they seek foreign brands.

The govt allows to import the luxury goods from wher it collects taxes. The result is more import than BD can export.

I hope the govt will open its eyes and import less of luxury goods and machines.