Abu Sazzad :Country’s current account balance continues to decline. The deficit balance of $ 1140 million during the first nine months (July -March) of the current fiscal 2014-15 due to higher import payments against comparatively lower export receipts.The current account balance was surplus by $ 1690 million during the corresponding period of the last fiscal, according to the latest data of Bangladesh Bank.According to economists, country’s current account is one of the two components of its balance of payments, the other being the capital account. The current account consists of the balance of trade, net primary income or factor income (earnings on foreign investments minus payments made to foreign investors) and net cash transfers that has taken place over a given period of time.Export marginally increased by 2.98percent during the first nine months (July to March) of the current fiscal against a target of 10 percent. Bangladesh earned $22,904.75 million from exports during the first nine months of the current fiscal against $22,242.66 million earned during the fiscal 2013-14, according to the Export Promotion Bureau (EPB).On the other hand, import payments during July-February, 2014 -15 increased by 14.23 percent and stood at $ 29361.10 million against $ 25703.80 million of July-February period of the last fiscal . Despite impressive growth of remittance the current account balance declines recently due to higher payments imports costs, said BB Executive Director M Mahfuzur Rahman. “We are little bit worried with the deficit current account balance, but it is not the key reason of our anxiety”, said the BB executive. Actually, country’s reserve stands at record $24 billion which is enough for meeting seven months import payment. Economist Mamun-ur-Rashid said, the deficit current account balance might put an adverse impact on the country’s macroeconomic situation in the coming months when the letters of credit would be opened to import in full swing.The cancellation of garments order followed by political deadlock in the first half of current fiscal year was one of the major reasons for surplus current account balance.. But right now, the political situation in the country has improved and the importers have started to import industrial raw materials, capital machineries and other accessories, said the economist. The imports might increase further with the start of the Padma Bridge construction works, the country’s largest infrastructural project, he also added.Former interim government adviser and economist, Mirza Azizul Islam said, the slower growth in export earnings was the main cause of the large deficit in the current account balance. A country needs foreign loans if its current account balance becomes deficit, explained he.For this reason, the surplus balance of the current account is considered positive for any country, he explained. He pointed that the government should take immediate measures to increase the export earnings by creating new markets in different countries.
