Record export earning fails to bring stability in macro-economy

Al Amin :
Record export earnings and increase of remittance inflow even have failed to bring stability in the country’s macro-economy, economists and businesses said.
They 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 credits (LCs) complications, which is affecting the industrial production.
Besides, the prices of essential commodities, especially non-food items, are still on the rise due to supply crunch in the local market amid the slowed economy caused by Russia-Ukraine war, they added.
Although, the government agencies have taken various initiatives to keep the prices stable, but the suffering of the common people has yet to be decreased, they said.
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 earning was $5.09 billion in last month. In the history of Bangladesh, such a large amount of export income has never come in a single month.
Earlier, the highest export was recorded $4.9 billion in a month.
On the other hand, remittance inflow increased to $1.59 billion in November compared with that of $1.55 billion in the same month in the past year.
Despite this, the manufacturers are worrying over increasing production due to the shortage of raw materials and energy crisis. Even, many factories have been shut down in recent times.
They considered the LC complications for importing goods caused by the dollar crunch as an “ominous sign” for the manufacturing-oriented industries.
Recently, the businesses have expressed their concern over LC complications in 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, they said that the import of consumer goods will be hampered if the crisis is not resolved.
In the meeting, a representative of a consumer goods importer and processing company said that their company opened an LC worth of $29.6 million but could not settle it. As a result, they are unable

to import essential goods.
Businessmen also complained that LCs of many companies are being cancelled failing to settle on time.
“LCs cannot be suspended randomly on excuse of money laundering. Those who launder money should be identified and punished. But, the entrepreneurs should be given opportunity to open the LC for running their business,” Dr Abdur Razzaque, Chairman of RAPID, told The New Nation on Friday.
Brig Gen (retd) Md Zakir Hossain, Director (Admin) of Deshbandhu Group, that despite the increase in investment and employment, the expected production and sales activities could not be achieved due to the Russia-Ukraine war as well as existing complexities in opening letters of credit because of volatility in the US dollar market.
“A higher value of the dollar is a big shock for the factories, as it has been hurting the import process of raw materials,” he added.
Besides, gas, fuel and electricity crises have been affecting production severely, he added.
Keeping the prices of essential commodities stable during the upcoming Ramadan, the Bangladesh Bank has already directed the banks to open LCs for oil, sugar, pulses, gram and some other goods.