Home Economy Bangladesh Business Climate Edges Up as Finance Access Improves but Challenges Remain

Bangladesh Business Climate Edges Up as Finance Access Improves but Challenges Remain

by Bangladesh in Focus

The latest Bangladesh Business Climate Index report gives a hopeful signal that the business environment is improving while also warning that challenges remain, and this matters to entrepreneurs and investors who plan ahead. The report was prepared by local chambers and policy experts with support from an international partner. It found the overall BBX score rose to 59.69 from 58.75 after surveying eight hundred firms across twelve sectors. That rise is small but it matters because it shows some reforms and support programmes are having an effect on the ground. Respondents said access to finance has clearly improved and the index shows that targeted refinancing and liquidity measures are working. Five of the eleven areas the index measures got better while six slipped, which means gains are mixed and more work is required. The study noted that starting a business, dispute resolution and paying taxes improved thanks to digital steps and simpler rules in some places. But firms still face higher costs from interest rate rises, exchange rate swings and uncertainty that can raise the price of imports. Supply chain disruptions and protest related stoppages hurt activity in some industries and caused losses for factories and traders. The index found agriculture and forestry, pharmaceuticals and chemicals, and food and beverage were among the better performing sectors. Construction, electronics and light engineering, and textiles lagged behind and may need special attention to become more competitive. The ready made garment sector scored 59.24 which shows the industry is still a major strength but one that faces operational limits and regulation problems. Regionally, Barishal led the divisions with the highest score and Sylhet and Mymensingh also ranked highly while Dhaka and Chattogram did not top any pillars. That pattern suggests the value of sharing growth more widely across cities and towns rather than depending on just a few crowded hubs. Report authors listed a clear set of priorities including simpler business registration, easier land access and stronger digital infrastructure in rural areas. They also called for banking reforms to expand credit, measures to reduce non performing loans and stronger support for small firms to get finance. Environmental regulation and standards need technical and financial help so businesses can comply without undue cost while meeting global rules. Skills training and support for technology adoption were highlighted so local workers and factories can raise quality and move up value chains. Experts warned that the country must stick to steady implementation of reforms rather than constantly introducing new rules that confuse businesses. The report says incremental reforms can still deliver positive results and that data driven steps help policymakers choose the best priorities. Business leaders at the launch urged less red tape and clearer rules to cut corruption and speed up everyday work for firms.

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