The latest survey on the business climate in Bangladesh has revealed a concerning trend, showing a three-year low in the country’s Business Climate Index. The score has dropped below 60 for the first time since its launch, indicating a challenging environment for local businesses.
According to the survey conducted by the Metropolitan Chamber of Commerce and Industry (MCCI) and the Policy Exchange Bangladesh (PEB), Bangladesh’s score in the fiscal year 2023-24 fell to 58.75 from 61.95 in the previous year. The survey, which assesses various aspects of the business environment, highlighted persistent issues in tax policies, land access, financing, and resource distribution.
Among the key areas evaluated in the survey were business startup, land availability, legal information access, infrastructure, labor regulations, trade facilitation, tax payment, technology adoption, and environmental regulations. Bangladesh scored the lowest in credit availability, indicating a significant challenge for businesses in securing bank loans.
Despite the challenging business climate, Prime Minister’s Private Industry and Investment Adviser Salman F Rahman expressed optimism about the overall situation, noting that efforts are being made to address issues such as the dollar crisis and inflation. He emphasized the importance of tax reform to boost revenue collection and expand the tax base.
The survey findings were presented at an event where industry leaders and policymakers discussed the need for coordinated efforts to improve the business climate in Bangladesh. The survey aims to provide valuable insights for policymakers and investors to make informed decisions and drive positive changes in the business environment.