Import surged 11 percentage points during the first seven months of the current fiscal year despite political unrest and tight monetary policy.

According to available data, overall import witnessed a whopping 22.07 percent growth during the July-January period of the current fiscal year, which was 11.31 percent during the same period of the previous year.

Central bank high officials say increased need for raw materials for export-oriented industries resulted in the import surge.

However, they said there is nothing to be worried about.

Import of consumer goods increased 25 percent during the period, while industrial raw materials, capital machinery and petro-

leum imports surged 14.32, 16 and 18 percent, according to the Bangladesh Bank (BB) statistics.

LC opening for consumer goods including rice, wheat, sugar, salt, milkfood, pulses and spices rose 41 percent, while LCs for industrial raw materials, capital machinery and petroleum went up 9.76, 11 and 35 percent during the period.

BB statistics regarding goods imports do not match with the belief that prices of essential commodities hiked due to a decrease in importfor the joint forces' drive against hoarding.

Private sector credit also increased 2.36 percentage points during the July-January period, sources said.

Available data shows that growth in private sector credit increased 18.27 percent during the period, which was 15.91 percent during the same time of the previous fiscal.

The majority share of the credit was for industrial investment. According to statistics, industrial term loan stood at Tk 5856.80crore during July-December period of the current fiscal year, which is an increase of 18.41 percent compared to the same period of the last fiscal year.

According to a central bank high official, strong domestic economy defeated political unrest in making the growth in private sector credit.

"Our entrepreneurs are now very much competitive and cautious about risk management. They are now capable to manage any kind of short-term crisis," added the official.

BB sources said there is no adverse effect on liquidity and balance of payment despite higher growth in private sector credit.

The central bank did not interfere in higher private sector credit growth since foreign currency reserve, foreign exchange rate and call money market have been stable, the sources added.

Bangladesh Textile Mills Association President Abdul Hai Sarker said businesses faced problems during the political unrest in November-December last year but the situation has now improved after the present caretaker government took charge.