DHAKA: Imports of capital machinery are picking up, showing signs of renewed business interest on expectations of greater stability in both politics and the economy.
In the first half of the financial year 2025 to 2026, the opening of letters of credit (LCs) to import capital machinery increased by 24% year-on-year, reaching US$1,079mil, according to Bangladesh Bank (BB) data.
This is the highest level in two years.
The rebound comes after three years of decline and sluggish private-sector credit growth, which stood at 6.10% in December, among the lowest in recent years.
“Businesses took such decisions hoping that the situation will improve after a political government comes to power following the election.
“This has triggered investment decisions, as it takes months to bring machinery,” said Mir Nasir Hossain, former president of the Federation of Bangladesh Chambers of Commerce and Industry.
He added that a major portion of the machinery may have been imported for BMRE (balancing, modernisation, rehabilitation and expansion), as new factories are not being set up amid the ongoing gas crisis.
BB data show that LC openings for machinery imports in the leather, pharmaceutical, packaging, and other sectors rose during the July to November period of financial year 2026.
By contrast, imports of capital goods for the textiles and garment sector, the country’s main export earner, continued to decline. — Daily Star/ANN
