In the garment sector, LC of USD 3.34 billion opened in July-November in fiscal 2020, compared to USD 3.98 billion dollars in the corresponding period of 2019. In this respect, the opening of LC and its settlement has decreased 16 and 14 per cent respectively.
In the first five months of the current fiscal year, LC for importing rice, onion, cotton and synthetic fiber has increased while LC for importing dairy products, edible oil, coal, cement, paper and paper board has declined.
The government has announced an incentive package of over Tk 1000 billion (Tk 1 lakh crore) to cope with the losses in the economy caused by the Covid-19 pandemic. From this package, large and small traders are taking loans at low interest. However, no one is setting up any new factories.
Sirajul Islam, executive director and spokesperson of Bangladesh Bank, told Prothom Alo that people’s demands have declined globally due to Covid-19 pandemic and this has had an impact on imports.