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Bangladesh’s capital machinery imports dropped by $630 million during the first eleven months (July–May) of the FY 2024–25, signaling a slowdown in industrial investment.

According to data from the Bangladesh Bank’s Balance of Payments (BoP) statistics, imports of capital machinery totaled $2.62 billion during the period, down by 19.6% compared to $3.26 billion in the same period last fiscal year.

The trend reflects lower industrial activity and subdued investment sentiment in key manufacturing sectors.

Additionally, the central bank’s latest Weekly Selected Economic Indicators show a sharp decline in the opening and settlement of letters of credit (LCs) for capital machinery imports over the past ten months:

• LC openings fell by 27.46%
• LC settlements declined by 25.56%

🔹 Sector-wise LC Declines

The downward trend in capital machinery imports was most visible in the textile, leather, jute, garments, pharmaceuticals, and packaging sectors.

• Textiles:
  • LC openings down 22.07%
  • LC settlements down 24.38%
• Leather/Tannery:
  • LC openings down 24.6%
  • LC settlements down 0.53%
• Jute:
  • LC openings down 6.65%
  • LC settlements down 15.67%
• Pharmaceuticals and Packaging sectors also witnessed a decline in import activities, though exact figures were not specified.

This continued contraction in capital machinery imports reflects the challenges facing Bangladesh’s industrial sector amid tightening global conditions, foreign exchange pressures, and cautious investor sentiment.