Bangladesh’s business environment has made minimal progress over the past year, with some indicators worsening, according to the latest Business Climate Index (BBX) for FY2024–25 released on Thursday.

The index, prepared jointly by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and Policy Exchange Bangladesh (PEB) with support from Australia’s Department of Foreign Affairs and Trade (DFAT), points to persistent structural barriers that continue to constrain private sector growth.

Although the overall BBX score inched up to 59.69 from 58.75 a year earlier, the report says the marginal improvement has brought little real change. It identifies continuing difficulties in access to regulatory information, infrastructure bottlenecks, labor regulations, and trade facilitation as major impediments to a better business climate.

Economists and business leaders warn that the private sector remains under pressure from inflation, high borrowing costs, exchange rate volatility, and policy uncertainty. They urge the government to undertake comprehensive reforms to restore business confidence and improve competitiveness.

The study links the stagnation to political instability, geopolitical tensions, and rising production costs, which have deterred new investment and weakened overall sentiment.

Bangladesh’s BBX score had stayed above 61 points for two consecutive years before dropping sharply in FY2023–24. The latest findings suggest that while the decline has stabilized, structural and policy challenges continue to prevent meaningful recovery in the country’s investment climate.