Country’s trade deficit has remarkably decreased in the first four months of the current fiscal year thanks to the government’s decision to restrict import of luxury and non-essential items.
The decision not to import luxury items such as gold ornaments, furniture, beverage, canned food and other goods helps narrow the trade deficit, which is greatly contributing to easing country’s dollar crisis.
Trade deficit has reduced by 50 percent in the first four months of the current fiscal year compared to the corresponding period of the last fiscal, according to the latest Bangladesh Bank data.
The central bank’s data shows that in the first four months (July- October) of the current fiscal year, trade deficit decreased by $380.90 crore which was $962.40 crore in the same period of the last fiscal.
The trade deficit has decreased by 60.50 percent during the period, according to the data.
Import control has contributed to achieving this success. As per statistics, during the period, the country imported goods worth $2026.90 crore and services worth $2551 crore in the same period last year
On the other hand, the country's export earnings stood at $1,646 crore during the period while it was $1,588 crore last year, according to statistics. The growth of overall export earnings is 3.61 percent.
However, experts said that country’s export-import gap could be reduced further by increasing export earnings.
Mezbaul Haque, spokesperson of the central bank, said, "Bangladesh Bank has strong vigilance on import to restrict import of luxury goods. At the same time, banks are checking prices of every imported item so that none can import anything showing high price."
The central bank has instructed all the banks to take precautionary measures before opening any letter of credit (LC). As per the measures, private banks have been asked to remain cautious so that none can launder money in the guise of import.
According to the central bank, the country saw a record trade deficit in the fiscal year 2020-21 due to Coronavirus outbreak. The trade deficit broke all records as it crossed $3325 crore.
However, in the last two fiscal years, country’s trade deficit has reduced and industry insiders are optimistic that it will decrease further in the coming days.
Economist Prof. Dr. Muhammad Mahboob Ali told the Bangladesh Post "Discouraging unnecessary import is a turning point for the growth of our economy. We have seen in recent years that our trade deficit is on the decrease. We have to build up our capacity to reduce our import dependency."
He also laid emphasis on building import substitute industrialisation to create job opportunities and build country's own skilled workforce in the country and enhance their competence.
The central bank imposed up to 75 percent margin on importing goods on May 10. And later, it imposed another 100 percent import margin on July 5.
Staff Correspondent
