No major improvement in Bangladesh’s business climate: BBX survey

Bangladesh’s business environment has seen little to no notable improvement over the past year, with conditions in several key areas actually deteriorating, according to the latest Business Climate Index (BBX) for FY2024-25.

The report shows that access to regulatory information, infrastructure facilities, labour regulation, trade facilitation, technology adoption, and environmental compliance have all worsened compared to the previous year.

The overall BBX score for FY2024-25 stands at 59.69, indicating that the country’s business climate remains challenging. Although the score has slightly increased from 58.75 in FY2023-24, the marginal rise of 0.94 points has not translated into a meaningful improvement in the operating environment.

The survey covered 12 key sectors – retail and wholesale trade, transport, construction, electronics and light engineering, leather and tannery, agriculture and forestry, real estate, food and beverages, pharmaceuticals and chemicals, ready-made garments, textiles, and financial intermediation.

This is the fourth edition of the BBX survey, jointly conducted by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), a private policy research organisation.

The findings were unveiled on Thursday afternoon, while the full report is scheduled to be released officially in the evening.

According to the report, political instability, geopolitical uncertainty, rising production costs, investment uncertainty, high inflationary pressures, increased bank lending rates, and exchange rate volatility are among the major factors contributing to the challenging business environment in Bangladesh.

newsmanjasi@gmail.com