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Industrial output soars in FY 2018

Rise in credit disbursement leads to the surge


Rezaul Karim | Published: August 25, 2018 10:58:51 | Updated: September 13, 2018 14:37:48


FE file photo

The industrial production marked a sharp increase in the first nine months of the last fiscal year (FY) compared to the same period of the previous fiscal.

The industrial output surged due to the rise in credit disbursement in the sector and improvement in the country's power supply situation.

Based on data released by Bangladesh Bureau of Statistics (BBS), the central bank prepared a brief analysis in this regard. It showed that the production increased mainly in the fields of textiles, apparels, food products, pharmaceuticals and medicinal chemicals, leather and related products and tobacco products.

The general index of industrial production -- medium and large-scale manufacturing -- increased by 18.63 per cent during the July-March period of FY 2017-18, compared to the same period of FY 2016-17, the central bank's latest analysis showed.

Sub-indices also recorded an increase during the July-March period of FY 2017-18 compared to the same period of FY 2016-17.

Sub-indices of leather and related products grew 53.72 per cent, pharmaceuticals and medicinal chemicals 44.61 per cent, food products 33.46 per cent, textile 22.13 per cent, apparels 19.49 per cent, fabricated metal products except machinery 18.67 per cent, tobacco products 15.07 per cent and non-metallic mineral products 13.90 per cent, the data mentioned.

However, sub-indices of chemicals and chemical products dropped by 7.64 per cent and basic metals by 6.04 per cent during the July-March period of FY 2017-18 compared to the same period of FY 2016-17, the data showed.

The electricity supply situation improved significantly in the last couple of years and huge improvement in the country's infrastructure sector took place at the same time. As a result, industrial production increased in the country significantly in the first nine months of FY 2017-18.

According to the Bangladesh Bank, the disbursement of total industrial term loans rose by 7.58 per cent and stood at Tk 169.79 billion (Tk 16979.53 crore) during the January-March period of FY 2018 as compared to Tk 157.8308 billion (Tk 15783.08 crore) during the same period of FY 2017.

The recovery of industrial term loans also increased by 13.56 per cent and stood at Tk 165.1978 billion (Tk 16519.78 crore) during the January-March period of FY 2018 against Tk 145.4705 billion (Tk 14547.05 crore) during the same period of the previous fiscal year.

Outstanding amount of industrial term loans stood at Tk 1913.9289 billion (Tk 191392.89 crore) at the end of March, 2018. At the same time, overdue of industrial term loans was Tk 320.9555 billion (Tk 32095.55 crore).

rezamumu@gmail.com

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