In the first half of fiscal year 2023-24, imports of capital machinery in Bangladesh increased slightly, marking a reversal from a prolonged downturn attributed to political uncertainty and a shortage of dollars. Businesses opened Letters of Credit (LCs) worth $1.34 billion for capital machinery imports from July to December, 1 % increase compared to the previous year.
Despite challenges such as political uncertainty and high inflation affecting consumer demand locally, there are signs of improvement in the overall scenario. LC openings for imports of capital machinery for garment, packaging, and other industries also saw increases compared to the previous year, indicating efforts to enhance capacity, upgrade machinery, and improve value addition.
With the recent elections concluded, exporters are optimistic about future demand and are investing in upgrading facilities. The increase in LC openings in December reflects expectations of political stability post-elections, according to Md Ezazul Islam, executive director (Research) at the Bangladesh Bank.