The opening of LCs for capital machinery imports rose by 24% to $1.079 billion in the first half (July–December) of FY26, compared to the same period a year earlier. This is the highest in the past two years.
Imports of capital machinery are picking up, showing signs of renewed business interest on expectations of greater stability in both politics and the economy.
In the first half of the financial year 2025 to 2026, the opening of letters of credit (LCs) to import capital machinery increased by 24% year-on-year, reaching US$1,079mil, according to Bangladesh Bank (BB) data. This is the highest level in two years.
The rebound comes after three years of decline and sluggish private-sector credit growth, which stood at 6.10% in December, among the lowest in recent years.
“Businesses took such decisions hoping that the situation will improve after a political government comes to power following the election.
“This has triggered investment decisions, as it takes months to bring machinery,” said Mir Nasir Hossain, former president of the Federation of Bangladesh Chambers of Commerce and Industry.
BB data show that LC openings for machinery imports in the leather, pharmaceutical, packaging, and other sectors rose during the July to November period of financial year 2026.
By contrast, imports of capital goods for the textiles and garment sector, the country’s main export earner, continued to decline.
Former president of the Federation of Bangladesh Chambers of Commerce and Industry, Mir Nasir Hossain, said many entrepreneurs are reconsidering previously suspended investment plans in anticipation of improved conditions following the installation of an elected government. Most of the machinery, he said, will be used to enhance existing industrial capacity and update technology.
Sectoral statistics show LC openings for capital machinery increased between July and November of the current fiscal year in sectors including leather, pharmaceuticals, and packaging. However, imports of capital goods in the country’s main export sectors—ready-made garments and textiles—remain slow. Entrepreneurs expect investment in these sectors to rise if political stability persists.
The current rise in import of capital machinery at a time of uncertainty therefore has a clear message. The message is that disease does not allow people to wait for better time. A life-threatening disease must be controlled by immediate and regular medication. Now that the investment made at a time of political uncertainty and fund crisis indicate that the investment in the sector is likely to gain momentum with the elected government taking the rein.
