BGMEA approves 10 foreign-owned, 2 JV-owned factories as of August. After a prolonged slowdown, Bangladesh witnessed a significant rebound in the import of heavy machinery, signalling industrial recovery.
According to data from the Bangladesh Bank, capital machinery imports surged by 70.7 percent in July – the first month of the current fiscal year.
The data showed that the capital machineries imports increased to $455.9 million in July 2025 from $267.1 million the year prior.
This rise follows a sharp 19.1 percent decline in capital machinery imports during fiscal year 2024-25, largely due to political instability, which had stalled business activities and discouraged both new investments and expansion of existing ventures.
Industry insiders said that the sharp rise in machineries imports in July indicates a shift in business sentiment. The business environment is gradually improving after the prolonged economic stagnation and new investors are coming to the market, prompting machinery imports for their factories.
According to Bangladesh Garment Manufacturing and Exporters Association (BGMEA), As of August this year, the apex trade body of the apparel sector has approved a total of 10 foreign-owned and 2 joint venture factories.
Several other factories are currently awaiting approval. Last year, the number was 10. In addition, some 12 new locally owned factories have been approved so far.
BGMEA Senior Vice President Inamul Haq Khan told The TIMES of Bangladesh that the surge in capital machinery imports is due to the creation of a business-friendly environment, which has sparked significant movement in the industrial sector.
Besides, with a rise in export orders, factories are expanding their operations to meet growing demand, he added.
Since taking charge, the interim government has implemented various measures to stabilize the country’s economy. These steps include easing the dollar crisis, relaxing import restrictions, and reducing import duties on capital machinery in the latest budget, the effects of which are now becoming evident.
The central bank data also showed that overall letter of credit (LC) openings in July 2025 rose by 24.99 percent year-on-year, reaching $4.78 billion compared to $3.82 billion in July 2024.
Muhammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the revival in machinery imports is being driven by renewed business confidence.
“Entrepreneurs are gradually regaining confidence as the government is easing LC openings and ensuring dollar availability,” he added.
As of August, the country’s foreign exchange reserves stood at $31.17 billion, reflecting a steady improvement in economic fundamentals.
LC openings specifically for capital machinery fell by 27 percent to $1.41 billion in the first 10 months of FY25, suggesting lingering hesitation among businesses regarding large-scale, long-term investments.
Total capital machinery imports for FY25 stood at $2.81 billion, down from $3.48 billion in the previous fiscal year. Similarly, imports of supporting machinery for both basic and miscellaneous industries declined by 1.88 percent year-on-year.
Rizwan Rahman, former president of the Dhaka Chamber of Commerce and Industry (DCCI), observed that many private sector players adopted a “go-slow” strategy amid the global and domestic uncertainty.
However, the recent spike in machinery imports could also be attributed to ongoing government development projects, which continue to drive demand for capital equipment.
Meanwhile, other capital goods imports rose by 26 percent to $756.4 million in July, up from $597.5 million in the same month of the previous year.
Additionally, imports related to the garment sector increased by 10.3 percent, totalling $1.52 billion in July compared to $1.38 billion during the same month of 2024.
These figures collectively indicate a cautious but ongoing recovery in Bangladesh’s industrial and investment climate, with positive signs that the worst may be over for the country’s manufacturing and capital goods sectors.
