Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 808 Sun. September 03, 2006  
   
Business


BoP remains positive on remittance, exports growths in FY06


Growths in remittance and exports have contributed to an overall positive balance of payment (BoP) in the last fiscal year (FY 2005-06).

Country's trade imbalance also recorded a decrease of 13 percent as export outweighed import in the last fiscal.

Overall BoP recorded a surplus of US$ 365 million in the FY '06, which was a smaller surplus with $ 67 million in FY '05, according to Bangladesh Bank statistics.

Exports saw a 21.63 per cent growth during last fiscal whereas in FY '05 the growth was 13.83 per cent.

Earning from export amounted to $10.52 billion in FY' 06, which was $8.65 billion during FY '05.

During the last fiscal, growth in import was 12.05 percent or $1431 million whereas export had a growth of 21.63 percent or $1849 million.

On the other hand, remittance inflow maintained the growth rate over 24.78 percent, touching $4.8 billion mark in the last fiscal mainly due to increase in skilled labour abroad and government's efficient move against money laundering.

Due to better performance by the export sector, the country's trade deficit decreased largely in the last fiscal. Reducing by $418 million country's deficit in trade balance now figures at $2879 million.

Despite larger service and income deficit, current account balance recorded a surplus of $572 million in the last fiscal against the deficit of $557 million during FY '05.

The overall BoP recorded surplus despite decline both in foreign aid and net foreign direct investment (FDI) in the last fiscal.

According to official statistics, net FDI amounted to $675 million in financial year 2005-06, which was $800 million in FY '05.

Bangladesh Bank statistics also reveals that foreign aid amounted to $1241.21 million in last fiscal, which was $1260 million in FY '05.