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The overall business climate in Bangladesh has worsened again. The country scored 58.75 points in the Business Climate Index 2023-24, which was 61.95 points in the previous year.
The information was revealed at a meeting of the Bangladesh Business Climate Index (BBX) held at the MCCI Gulshan office on Thursday.
The Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) and Policy Exchange Bangladesh jointly conducted the comprehensive survey for the third time.
The country’s business climate score has dropped below 60, indicating a challenging environment for businesses, according to the BBX report launched on Thursday.
This marks a significant decline from 2022 when the score was 61.95. Persistent issues in tax policies, land access, financing, and the unequal distribution of facilities have contributed to the declining business environment, as discussed by experts.
The survey evaluated 11 key indicators: business start-up, land availability, access to legal information, infrastructure, labour regulation, dispute resolution, trade facilitation, tax payment, technology adoption, credit availability, and environmental regulation and standards. This year, an environmental control and quality index was also included.
Among these indicators, Bangladesh performed the worst in credit availability, with a score of 28.11. This reflects ongoing challenges in securing bank loans, an issue that has persisted from the previous year.
Despite these difficulties, Bangladesh performed best in the infrastructure sector, achieving a score of 71.08 out of 100.
Addressing the event, Prime Minister's Private Industry and Investment Adviser Salman F Rahman, acknowledged the challenging business climate but noted that the overall situation is stable.
He mentioned that the dollar crisis has been managed, with the Bangladesh Bank allowing the exchange rate to be market-driven, leading to the dollar rate falling to Tk 117.
Mr Rahman expressed optimism that inflation will start to decline from July, thanks to the central bank's policies.
MCCI President Kamran T Rahman, who presided over the event, emphasized that the survey aims to provide valuable insights into the policy adjustments needed across different sectors.
He stressed that the findings will guide policymakers and investors in making informed decisions to improve the business climate in Bangladesh.