According to Bangladesh Business Climate Index (BBX), the country’s business climate declined in 2023 compared to the previous year due to slow regulatory reforms, inadequate infrastructure, and financing challenges.
The index, based on a 0-100 scale, dropped to 58.75 in 2023 from 61.95 in 2022, as reported in the BBX 2023-24 by Policy Exchange Bangladesh (PEB) and the Metropolitan Chamber of Commerce and Industry (MCCI). This marks the third edition of the BBX.
PEB Chairman Mr. M Masrur Reaz emphasized the need for significant reforms during a presentation at the MCCI Gulshan office in Dhaka. The survey included 520 small, medium, and large enterprises, assessing eleven pillars: business launch, land acquisition, regulatory information, infrastructure, labor regulation, dispute resolution, trade facilitation, tax payments, technology adoption, financing, and environmental concerns. Mr. Reaz highlighted inconsistent law enforcement, even among similar companies. Dhaka and Chattogram are the primary economic hubs, but Chattogram’s business environment has worsened over the past three years, requiring government attention.
“If the business environment in the country’s commercial capital does not improve, Bangladesh will struggle to harness business benefits, trading activities will falter, and investments will stagnate,” Mr. Reaz warned. He stressed the need to improve field-level service delivery by regulators.
Comment here