Local investment proposals rise 117pc in July-March of FY ‘11
The country’s local investment proposal increased by nearly 117 per cent in first nine months of the running fiscal compared to the corresponding period of the last fiscal, Board of Investment (BoI) officials disclosed.
The Bangladesh Bank’s data on the increase of ‘opening’ and ‘settlement’ of the letters of credit (L/C) also indicate that the local investment is in a rising trend.
The BoI data showed the investment has reached its record high in 2010-11 FY through investment worth Tk 399.76 billion in first nine months, and increased by more than 117 per cent compared to the corresponding period of 2009-10FY when Tk 184.09 billion was invested.
The investment in the first three months of 2011 calendar year (January to March) was Tk 13.782 billion, 60.70 per cent higher than that of the corresponding period of 2010 when Tk 8.573 billion was invested as proposal.
Around 1298 industrial units had been registered during this time, which would generate more than 0.323 million jobs, the officials of the BoI expected.
Service, textile and agro-based industries and engineering sector were leading the track with a great rise while other sectors like food and allied products, chemicals, tannery and leather, printing and publishing etc witnessed a fall.
The service sector showed a gigantic 694 per cent rise with Tk 147.189 billion investment proposal under 128 industrial units in first nine months of 2010-11FY, compared to the corresponding period of last fiscal when Tk 18.521 billion was invested(as proposal).
Textile sector got Tk 127.027 billion investment during the July-March period of 2010-11, up by 107.25 per cent compared to the matching period of 2009-10FY when Tk 61.291 billion was invested as proposal.
Agro based products showed a 200 per cent increase with Tk 37.682 billion investment under 118 industries against Tk12.661 billion investment last year.
Engineering sector performed well with investment proposal of Tk 26. 577 billion against last year’s Tk 20. 405 billion, showing more than 30 per cent increase.
Chemical industry sector witnessed 14.32 per cent, food and allied products 13.28 per cent and printing and publishing sector 32.33 per cent increase during the period under review.
The leather and tannery sector witnessed a negative trend with Tk 1.11 billion investment in July-March period of 2010-11 FY against Tk 1. 477 billion of the corresponding period of last financial year.
BOI Director on local investment Touhidur Rahman Khan told the FE that the Board was expecting that large employment opportunities would be created in coming days through the implementation of the proposals.
A significant number of the proposals were being implemented, he said.
He expressed his optimism that the investment proposals would surpass Tk 500 billion by the end of the current financial year.
Responding to a query of the FE on jute sector he answered that the investment in jute sector was rising significantly.
“A few days back, an industry was registered with an investment proposal of Tk 2.37 billion in jute yarn sector”, he added.
Another high official of BoI said the proposals for quick rental power plants had led to a great increase in the volume of investment in the power sector.
Bangladesh Bank data have shown that the L/C opening and settlement for capital machinery rose significantly during the July-February period of 2010-11FY compared to the corresponding period of 2009-10FY.
The rising trend of the opening and settlement of letters of credit (L/C) for capital machinery is indicating that the implementation rate of investment is also rising.
According to the BB data, the L/C opening and settlement for capital machinery were Tk136.363 billion ($1948.05 million) and Tk 92.708 billion ($1324.40 million) respectively in July-February period in 2010-11FY.
It was Tk 80.894 billion ($1155.63 million) and Tk 66.446 billion ($949.23 million) respectively in the corresponding period of 2009-10 FY.
The BB data revealed that the ‘opening’ had increased by 71.69 per cent and ‘settlement’ by 39.52 per cent in July-February of 2010-11FY compared to the matching period of the 2009-10FY.