BANGLADESH'S TRADE GAP TO WIDEN IN 1987/88
Bangladesh's trade gap is expected to
widen in fiscal 1987/88 beginning on July 1 after the
government relaxed restrictions on some imports including
luxury cars.
    The country has set its export target for the year at 1.1
billion U.S. Dlrs against imports of 1.805 billion dlrs,
compared with 1986/7's one billion dlrs of export earnings and
1.113 billion dlrs of imports.
    Commerce Minister Mohammad Abdul Munim said the changes
were aimed at encouraging export oriented industries to boost
foreign exchange earnings and imports of essential machinery
and raw materials, to increase industrial production.
    The government was easing procedures to enhance incentives
especially for exporters of textiles and frozen food and
importers of industrial machinery and raw materials, Munim told
reporters.
    Commerce Ministry officials told Reuters the import policy
covered only commercial imports amounting to 1.805 billion
dlrs. Imports of capital machinery and foodgrains by the
government were not included in the policy, they added.
    They said the country's total import bill (both commercial
and other imports) was expected to reach 2.7 billion dlrs in
the new year compared with 2.4 billion dlrs in 1986/87.
    The minister said ending restrictions on imports of cars
and dropping 50 pct sales tax on small cars would not harm the
economy.
    Munim said Bangladesh feared a further drop in prices for
its main export jute, "which will certainly affect our export
earnings" in the coming year.
    Bangladesh's jute exports fell to 410 mln dlrs from 500 mln
in 1986/87, according official figures.
    But Munim said exports of non-traditional items, which
accounted for over 40 pct of total exports this year, would
play a key role in achieving the 1987/88 export target.
 REUTER
