Finance Minister Amir Khosru Mahmud Chowdhury has urged the state-run Investment Corporation of Bangladesh (ICB) to enhance its efficiency and competitiveness following its request for Tk 10,000 crore in government funding. Speaking at an event celebrating ICB’s 25th anniversary at Hotel Purbani, the minister emphasized the need for ICB to align with market dynamics to match the intelligence and connectivity of its private sector counterparts.
Highlighting the importance of being market-oriented, competitive, and professional, the minister emphasized that government enterprises, including ICB, must operate based on market principles. Initially established in 1976 to bolster Bangladesh’s market economy, ICB was envisioned as a platform for ordinary citizens to channel their savings towards capital formation, thereby stimulating economic growth.
Despite its historical success in generating significant returns through flagship unit funds, ICB has faced substantial losses in recent years, largely attributed to poor investment decisions. The finance minister also noted ongoing efforts by the government to introduce deregulation measures in line with global best practices to bolster the capital market.
During the event, it was highlighted that the prime minister’s engagement with major Wall Street firms marked a significant milestone in Bangladesh’s economic trajectory. The finance minister expressed optimism about the confidence shown by global firms in Bangladesh’s market-oriented economy and policy direction, emphasizing the need for proactive preparation to attract further investments.
Addressing the need for modernization, the finance minister stressed the importance of digital transformation within ICB, emphasizing the shift towards automated processes and paperless transactions. The Chairman of the Bangladesh Securities and Exchange Commission (BSEC) echoed the importance of accountability, professionalism, and trust in ensuring ICB’s competitiveness against private sector entities.
ICB’s Managing Director underscored the institution’s challenges and requested government funding to address its current financial constraints. While advocating for a market economy, ICB’s Chairman also acknowledged the necessity of government support to sustain the institution’s operations and role in capital formation.
The event also featured insights from key stakeholders, including the Financial Institutions Division Secretary, who emphasized the importance of market analysis and efficient management in navigating challenges. Looking ahead, the focus for ICB will be on enhancing efficiency, improving recovery rates, and accelerating digitalization to drive sustainable growth.
