Import rebounds as economy strives for recovery
Bangladesh’s imports rose sharply in the first 11 months of last fiscal year as the economy enjoyed a turnaround for the time being following the first wave of the coronavirus pandemic.Between July and May last fiscal year, overall imports stood at $58.62 billion, up 17.31 per cent from a year ago, showed Bangladesh Bank data.Import of raw cotton, which is mainly used in the export-oriented readymade garment industries, stood at $2.83 billion in the first 11 months of last fiscal year, up 5.34 per cent from one year ago.Yarn imports grew 18 per cent to $2.08 billion while that of textile and articles dropped 0.26 per cent to $5.83 billion. Rahman said the import of foodgrain increased as the government had catered a good quantity of rice to the poor to offset the economic hardship stemming from the pandemic.Import of foodgrain, meaning rice and wheat, stood at $25 billion in the 11 months, up 60 per cent year-on-year. Import payments for petroleum products also increased 45 per cent year-on-year to $5.46 billion.Import payments for capital machinery stood at $3.24 billion, down 3.28 per cent year-on-year.This has had a negative impact on private sector credit growth, which stood at 8.29 per cent in April, down from 8.82 per cent one year ago.Import of edible oil also increased 19 per cent year-on-year to $1.77 billion while that of chemical products grew 18 per cent to $2.66 billion.
Export target $51b this fiscal year
Bangladesh has targeted exporting $51 billion worth of merchandise and services this fiscal year.It is 12.37 per cent higher than that attained in the immediate past fiscal year of 2020-21.Local manufacturers and exporters believe the target was attainable, reasoning the rebounding of the global economy with the reopening of stores in the Western world.Merchandise is set to bring in some $43.50 billion, up 12.23 per cent from last fiscal year’s achievement.Some $7.5 billion is expected to be earned from the services sectors, which is similarly 13.15 per cent higher.Like previous years, readymade garments (RMG) is aimed to comprise the bulk of the merchandise.Hopes are for it to grow 11.72 per cent to some $35.14 billion.This will comprise around $19.51 billion from knitwear (up 15 per cent) and $15.62 billion from woven (up 7.8 per cent).The South Asian Free Trade Area could be looked at again for easy availability of industrial raw materials at competitive prices to reduce dependency on single sources, said MdSaiful Islam, president of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh.Increasing work orders from international retailers and brands will definitely help knitwear exports to grow, said Mohammad Hatem, first vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association.Merchandise export was supposed to reach $60 billion in 2021, with garments accounting for some $50 billion, but faced a setback for Covid-19’s fallouts on the global supply chain.
New company registration surges despite pandemic
Despite the lengthy coronavirus pandemic, 13,613 new companies were registered in Bangladesh in the just-included fiscal year, highlighting the confidence of businesses in the economy.This is the highest firm registration in a single year, according to data from the Office of the Registrar of Joint Stock Companies and Firms (RJSC).The office of the RJSC is mandated to provide name clearances and registration to all public companies, private companies, liaison offices or branches of foreign companies, trade organisations, societies, and partnership firms.Some 12,107 private companies took registration in FY21, up 34.37 per cent year-on-year. About 9,010 companies were incorporated in FY20.Some 317 societies were incorporated in FY21, which was 250 in the previous year. The registration of partnership firms went up 30 per cent to 2,359 in FY21 compared to 1,827 in FY20.In Bangladesh, there are 3,587 public limited companies, 186,825 private limited companies, 974 foreign companies, 51,332 partnership firms, 1,143 trade organisations, and 15,253 societies, data from the RJSC showed.Registration of new companies rose 24.32 per cent in 2018-19.The RJSC earned Tk 217 crore in the last fiscal year in the form of non-tax revenues, stamp duties and value-added tax, up 19.23 per cent from a year ago.
Mercantile Bank gets new exec committee chairman
Mercantile Bank has recently witnessed the appointment of a new chairman to the executive committee of its board of directors.The appointee, Akram Hossain, previously served the bank as vice chairman and chairman, says a press release. He is the chairman and managing director of FARS Group.