How tough it is to start a business in Bangladesh

Starting a business in Bangladesh is most conducive in the transport, storage, and communication sector, while the readymade garment (RMG) industry remains the most challenging, according to the Bangladesh Business Climate Index (BBX) 2024-25.

The BBX provides a data-driven snapshot of the country's investment climate. It evaluates 11 pillars adapted from global benchmarks to reflect Bangladesh's local context.

The report highlights sharp contrasts across sectors. Access to land is easiest in electronics and light engineering but most difficult in construction.

Availability of regulatory information is most favorable in the food and beverage industry, while the textile industry lags behind. Business infrastructure is strongest in readymade garments but weakest in electronics and light engineering.

Labour regulations are most favorable in financial intermediaries, yet the leather and tannery sector faces the greatest hurdles.

Dispute resolution is easiest in electronics and light engineering but most difficult in leather and tannery, according to the report.

Trade facilitation is best in pharmaceuticals and chemicals, whereas financial intermediaries struggle the most.

Paying taxes is most conducive in transport, storage, and communication, while electronics and light engineering face the steepest challenges.

Technology adoption presents a reversal: leather and tannery lead, while food and beverage trails. Access to finance is easiest in pharmaceuticals and chemicals but hardest in leather and tannery.

Environmental regulations and standards are most favorable in the food and beverage sector, yet most challenging in pharmaceuticals and chemicals.

The BBX index was launched in 2021 by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry, Dhaka, with support from the Australian government's Department of Foreign Affairs and Trade.