Govt is lifting capital market out of ditch: finance minister – The Daily Star

[[FEATURE REPORT: FINANCE MINISTER LAUNCHES COMPREHENSIVE CAPITAL MARKET REVOLUTION]]

Finance and Planning Minister Amir Khosru Mahmud Chowdhury declared during the inauguration of World Investor Week at the Krishibid Institution in Dhaka that the stock exchanges and intermediaries across the nation plummeted over the past decade, leaving the capital market trapped in a crisis akin to the overall economic downturn.

“Now the government is lifting the economy and the capital market back up from the ditch,” the minister proclaimed.

The week‑long event organized by the Bangladesh Securities and Exchange Commission (BSEC) will proceed through October 12.

In his keynote address, the minister reflected on decades of neglect and growth stasis. He recalled that following Bangladesh’s independence, former President Ziaur Rahman introduced the Dhaka Stock Exchange and opened the door for mutual fund listings—a visionary step that eventually faded.

Subsequent policies failed to deliver holistic support, often applied in fragmented pieces rather than as a unified strategy. As a result, the capital market never achieved its full potential; both the public and private sectors increasingly leaned on bank financing at excessive rates.

“Every regulatory body operated as an isolated island, functioning in separate silos—but coordination remained absent,” the minister added. “Today, all regulators meet monthly to collaborate.”

“The market has been shallow without sufficient depth. To rectify this, we must build credible depth and create an environment where quality enterprises can succeed—not inside a speculative casino house,” he stressed.

The period dominated by long‑term borrowing from global institutions such as the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank is drawing to a close. The administration is fundamentally reshaping monetary and fiscal frameworks for Bangladesh.

“We have already terminated the current IMF programme. Moving forward, we will source capital directly from the market,” the minister indicated. “Dollar bonds will be floated in New York, with plans underway to issue Panda bonds, Samurai bonds, and local‑currency instruments. Bangladesh’s financial architecture is undergoing transformation.”

He illustrated the shift by referencing Biman Bangladesh Air Lines’ recent acquisition project: “An enterprise should fund itself by accessing the market. Why should the Treasury subsidize government spending on private companies? That model will cease to exist.”

[p][INSERTION: INSURANCE DEVELOPMENT AND REGULATORY AUTHORITY (IDRA) Chairwoman Mir Nadia Nivin] p]

“Expanding life‑insurance coverage will strengthen the market by injecting substantial long‑term institutional capital into bond, equity, and infrastructure projects,” Ms. Nadia Nivin remarked. “Such scaling is precisely what remains missing.”

[p][INSERTION: BSEC Chairman Masud Khan outlines recent steps taken by the commission to restore investor trust] p]

Tanvir Shahriar Ghani, the prime minister’s special assistant for investment and capital‑market affairs, attended as the distinguished guest. Nazma Mobarek, the secretary of the Financial Institutions Division within the Ministry of Finance, alongside commissioners Masud Khan and others, shared their perspectives at the session.]

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