Dollar shortage affecting raw materials import for industrial production
01 January 2023
Record
export earnings and increase in remittance inflow have even failed to
bring stability to the country's macro-economy. Economists and
businesses said imports of goods are still being hampered due to dollar
shortage as the entrepreneurs could not bring necessary raw materials
from abroad due to letter of credit (LCs) complications, which is
affecting industrial production.
The prices of essential commodities,
especially non-food items, are still on the rise due to a supply crunch
in the local market amid the slowed economy caused by the
Russia-Ukraine war. Although, government agencies have taken various
initiatives to keep the prices stable, the sufferings of the common
people are yet to be decreased.
The country's export earnings, based
on readymade garment shipment, achieved a milestone of $5 billion in
November. According to the Export Promotion Bureau (EPB) data, the
overall export earnings were $5.09 billion in the last month. In the
history of Bangladesh, such a large amount of export income has never
come in a single month. On the other hand, remittance inflow increased
to $1.59 billion in November compared with that $1.55 billion in the
same month in the past year.
Despite this, the manufacturers are
worried about increasing production due to the shortage of raw materials
and the energy crisis. Even, many factories have been shut down in
recent times. Recently, the businesses have expressed their concern over
LC complications at a meeting of the advisory committee of the Commerce
Ministry. Requesting the government to resolve the LC complications in
order to keep the supply of consumer goods normal in the coming Ramadan,
businesses said that the import of consumer goods will be hampered if
the crisis is not resolved.
LCs cannot be suspended randomly on the
excuse of money laundering. Those who launder money should be identified
and punished. Despite the increase in investment and employment, the
expected production and sales activities could not be achieved.
