A new round of business confidence survey conducted by IFC, a member of the World Bank Group, reveals that while investment is flat in the third quarter of this year, the business confidence for the next quarter is up.

As part of its effort to promote business reforms, the Bangladesh Investment Climate Fund (BICF), managed by IFC, in partnership with the U.K Department for International Development (DFID) and the European Union (EU), surveyed about 800 businesses around the country to gauge their investment, employment, profitability, and overall performance for July-September quarter and their expectation for the October – December, quarter. BICF conducts this survey on a quarterly basis to check the pulse of the business environment.

Organized by BICF and the International Chamber of Commerce- Bangladesh (ICC-B), the survey report presentation brought together business leaders, prominent economists, key private sector players, civil society representatives, government officials and change-makers to share the results of the survey and stimulate discussions on how to broaden the appeal of business reforms held at DCCI Auditorium.

Aminur Rahman, Investment Policy Officer of IFC presented the survey findings and analyzed the results. The results highlights that the investment conditions for businesses vary across sectors, sizes, and locations. Service sector and small firms tended to have a better third quarter compared to manufacturing sector and large firms. On the other hand, overall firm performance tended to better in Khulna, Barisal, and Rajshahi compared to Sylhet, Dhaka, and Chittagong. Global financial crisis and lack of market demand for products are some of the key reasons of variation of business confidence within the country.

“Gauging the business confidence on a regular basis is fundamental for policy making to promote investment and growth and to reduce poverty” said James Crittle, Head of BICF.

Hon’ble Commerce Minister Lt. Col. Muhamad Faruq Khan said that the survey result has perfectly indicated the business trend. He emphasized that this Govt. under leadership of Prime Minister Sheikh Hasina is ready to extend all-out cooperation to the business for improvement of electricity, gas, traffic movement as well as other business related issues. ICC Bangladesh President Mahbubur Rahman, in his welcome address stressed the importance of conducting such surveys on a quarterly basis as the results will allow both the government and the businesses to draw up appropriate strategy for creating a favourable investment climate for attracting much needed both local and FDIs, for furtherenace of the development efforts of Bangladesh.

Mahbubur Rahman also emphasized that the Government should not only resume the activities of Bangladesh Better Business Forum (BBBF), Regulatory Reforms Commission (RRC) and other such bodies which the business communities strongly feel that these institutions have made significant changes in creating a better investment climate in the country.

Former Adviser to the Caretaker Govt. Prof. Wahiduddin Mahmud chaired the event. “The findings of the survey are of broad interest to those who wish to promote regulatory reforms and a better business environment in Bangladesh,” asserted Prof. Mahmud. Panelists present included
Aftab ul Islam, Chairman, SME Foundation, Dr. Mustafa K. Mujeri, DG, BIDS, A.S.M. Quasem, Chairman & CEO Newage Garments Ltd., Mamun Rashid, Managing Director and Citi Group Country Officer, Citibank N.A., Bangladesh, Hossain Khaled, Former President, DCCI and Dr.
Zaidi Sattar, Chairman, Policy Research Institute of Bangladesh. President, Zafar Osman, President, DCCI, President, Abdul Hafiz Choudhury, FCA, President, MCCI, Alamgir M. Rahman, President, France Bangladesh Chamber of Commerce & Industry, Masudur Rahman, President, Canada-Bangladesh Chamber of Commerce & Industry, M. A. Momen ,Former DCCI President and business leaders, bankers and other stakeholders attended the session.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

About BICF

The Bangladesh Investment Climate Fund (BICF) provides advisory services aimed at improving business operating environment in Bangladesh. BICF is managed by IFC, in partnership with the U.K Department for International Development and the European Union. Its objectives are consistent with the Bangladesh government’s strategic vision for private sector development within its poverty reduction strategy. Government agencies and BICF—in close collaboration with the key stakeholders in Bangladesh—jointly design and implement programs to institute business friendly policies, laws and regulations, and strengthen the institutions that implement them.