Dollar crisis deepens, affecting fuel, RMG imports

Staff Reporter :

The Chairman of the National Board of Revenue (NBR), Md Abdur Rahman Khan, admitted on Sunday that Bangladesh is facing a severe crisis in paying import bills for essential items, including fuel, raw materials for the ready-made garment (RMG) sector, and many others.

He stated, “As mentioned by the representative
from Bangladesh Bank, essential items such as fossil fuels or gas, which are critical for running industries and the transportation sector, are necessary for Bangladesh’s progress.

Without these, the country cannot move forward. However, we are struggling to pay for these imports due to the ongoing dollar crisis.”

Khan explained that the shortage of foreign currency has caused significant difficulties in settling bills for these imports.

He made these remarks during a meeting with stakeholders from the gold importers’ sector, aimed at promoting gold imports commercially in the country.

Leaders of the Bangladesh Jewellery Association requested that the NBR reconsider the import duties and levies, particularly the 151 per cent import duty on diamonds.

In response, the NBR chairman explained that there are specific reasons for the high duty on diamonds.

“The government is discouraging diamond imports for these reasons. However, once the foreign exchange reserves are in a more comfortable position, we may revisit this issue,” he added.

Khan also pointed to the chaotic situation in the banking sector during the previous Awami League government, describing it as a major contributing factor to the current crisis.

He reassured stakeholders that the matter would be reconsidered in the future once foreign currency reserves are more stable.

Bangladesh is currently grappling with a severe dollar shortage, which is severely affecting its ability to pay for imports and is straining the overall economy.

As of January 22, Bangladesh’s foreign exchange reserves had fallen to below $20 billion, driven down by import bills and foreign debt repayments.

The reserves stood at $19.93 billion according to the International Monetary Fund’s (IMF) BPM-6 standards, while total reserves were reported at $25.22 billion by Bangladesh Bank.

On January 15, the reserves had been at $21.3 billion under BPM-6 standards, with total reserves standing at $25.18 billion.