The Bangladesh Business Climate Index (BBX) fell to 58.75 in fiscal 2023-24 from the last fiscal’s 61.95, while the survey's first year found the index at 61.01 in FY22.
Of the 11 major pillars under consideration in the survey, only access to land, trade facilitation and technology adoption saw some improvement this year.
The country has deteriorated in ease of starting a business, availability of regulatory information, infrastructure support, labour regulation, dispute resolution, paying taxes and access to finance, most businesses feel.
Amid monetary tightening, the score for access to finance fell to 28 from over 50 two years ago. The score for the new environmental regulations and standards indicator was over 51.
More than 70 per cent of respondents noted that the government frequently altered regulations in the past 24 months, which affected their businesses, emphasising the need for predictable regulations.
Seventy-eight per cent of respondents indicated that they have not observed any reduction in the time taken to resolve commercial disputes in Bangladesh over the past 24 months, while over 90 per cent acknowledged the effectiveness of Bangladesh's out-of-court commercial dispute resolution mechanisms.
Over 90 per cent of surveyed individuals encountered moderate to substantial challenges in securing bank loans for their businesses over the last two years, domestic media outlets reported.
On a scale of 0 to 100, a score below 20 signifies a difficult environment for business, demanding reforms. A score of 21-40 means substantial bottlenecks remain for businesses, while 41-60 reflects general complexities in the business environment that require regulatory modernisation and simplification for improvement.
A score between 61 and 80 reflects an improving business environment that requires continued efforts for further progress, while a score above 80 indicates the country has ensured a business-friendly environment.
Businesses in Rajshahi, Dhaka, and Rangpur divisions have seen continuous improvement over the past three years, while Khulna and Chattogram divisions experienced continuous deterioration, with their scores sliding every year.
Mymensingh, Sylhet, and Barishal divisions showed volatility in their business climate, with scores fluctuating up and down this year. The Barishal region demonstrated the weakest business climate, while Rajshahi led the pack.
ALCHEMPro News Desk (DS)
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