Bangladesh needs to eliminate obstacles to more private investment as, as per the Bangladesh Business Climate Index 2024, the country’s annual growth in private sector credit fell short of the Government’s aim of 11 per cent for this month.
It stated that its growth rate in December 2022 was 10.9 per cent, and in December 2023 it grew at a somewhat slower pace of 10.2 per cent year over year.
The Policy Exchange, Bangladesh (PEB) and the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka recently announced the index. According to the ranking, Bangladesh is recognised as a growing centre for investment.
Foreign direct investment (FDI) remains limited and predominantly focused on traditional sectors such as garments and textiles, oil and gas, energy and power, financial services and pharmaceuticals, it said.
According to the index, the influx of foreign capital can have a transformative influence on local sectors as it brings with it managerial knowledge and technological breakthroughs, boosts economic activities, and strengthens the domestic investment base.
It stated that several obstacles have hindered the flow of foreign direct investment (FDI) and private investment, making it difficult for the nation to stay up with many of its comparable countries.
It added that the foreign direct investment (FDI) flooding into different sectors of Bangladesh provides insightful views of the country’s economic landscape and identifies the sectors attracting significant investments.
The manufacturing sector in Bangladesh got the largest net foreign direct investment inflows in FY 2023 (US $ 208.56 million), making up 37.2 per cent of all FDI, it continued.
According to the index, Bangladesh’s business environment somewhat worsened in 2023 compared to 2022, mostly as a result of slow regulatory reforms, inadequate infrastructure, and challenges obtaining financing.
On a 0-100 scale, the indigenous index dropped from 61.95 in 2022 to 58.75 in 2023.
