Import of Luxury Items To Be Controlled: Kamal

Finance Minister AHM Mustafa Kamal has said imports of luxury goods will be controlled until the global inflation comes down to a tolerable level, reports UNB.

"Imports were never unregulated. Necessary measures are taken to control imports regularly. We are doing the same now," he said while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs (CCEA) and Cabinet Committee on Government Purchase (CCGP).

He said Bangladesh Bank (BB) always controls the import of some unnecessary items, but there would not be any restriction on the consumer goods which are necessary for people and essential as part of project implementation.

He informed that the central bank has taken an initiative to control the import of luxury items and increased the LC margin.

This will stay in place until commodity prices come down in the international market, he added.

Referring to the country's widening trade deficit he said, "Our exports are growing and so are our imports."

"Imports are always higher than the exports for Bangladesh. No matter how much growth there is in exports, it will never exceed imports," he added.

Kamal said this responding to a question whether Bangladesh Bank will take more measures to control imports to avoid any unwanted situation like Sri Lanka or Nepal. 

Many economists expressed concerns over the Bangladesh’s growing foreign debts while Bangladesh Bank also imposed some restrictions on import of some items. 

He said as internal vulnerability exists, these luxury items will be controlled. 

“If the situation becomes normal, then we will allow import of these items”, he opined. 

Referring to a report of the World Bank the finance minister said globally the market prices have gone up by 38 per cent while price of beef has increased by 35 per cent, chicken by 55 per cent, soya bean oils by 35 per cent, tea by 13 per cent, TSP fertiliser by 65 per cent and urea fertiliser by 135 per cent. 

So, we have to take coordinated measures to control the market, said Kamal.