The business climate in the port city of Chattogram, the commercial capital of Bangladesh, and four other divisions, have overtaken Dhaka because of its over-centralisation policy and regulatory service-related decision-making capacities. Chattogram so long remained at the top position on the business-outside-Dhaka list, followed by Khulna, Sylhet, Rangpur and Barishal, a survey report reveals. The Bangladesh Business Climate Index (BBX) that has prepared the report after conducting the survey said the port city topped four out of ten criteria, such as availability of regulatory information, access to infrastructure, trade competitiveness and technology adoption, thanks to the infrastructural development of Chattogram and four other divisions.
The report on the business climate in the country, based on homegrown indices, was published jointly by the Metropolitan Chamber of Commerce and Industry Dhaka (MCCI) and Policy Exchange Bangladesh (PEB) on Thursday. Dhaka did not top any of the ten indicators, showing significant challenges for doing business. Running a business in Dhaka has become more difficult day by day because of land scarcity for setting up factories. On the contrary, land issues plus other business complexities are less severe in district headquarters. Moreover, businesses outside the capital comply with the policy of decentralisation and qualify for some tax holidays. Experts and businesses said the recent economic infrastructure plans in and around Chattogram, including Mirsarai Special Economic Zone, Karnaphuli river tunnel, Bay container terminal, energy hub in Matarbari have led the port city to the top of the business index.
Homegrown business indices are used across the world, including China, Vietnam, and Malaysia. In terms of acquiring land, the leather and tannery sector has easier access in contrast to the RMG sector, which faces the most difficulty. Access to finance for the pharmaceuticals and chemical sector is easier than it is for the food and beverage sector. On top of this, the Padma Bridge project is nearing completion to facilitate communication with the southern part of the country leading to new industries and businesses in the region. The policy and decision makers must now find strategies to meet the challenges as mentioned in the study so that all the regions of Bangladesh develop smoothly and do not lag behind in global competition.
