Finance and Planning Minister Amir Khosru Mahmud Chowdhury has pointed out that stock exchanges and market intermediaries have not performed well in the past decade, leading to the capital market’s decline mirroring that of the economy. Speaking at the opening of World Investor Week, organized by the Bangladesh Securities and Exchange Commission (BSEC) in Dhaka, the minister emphasized the government’s efforts to revive both the economy and the capital market.
According to the minister, the Bangladesh capital market has historically been neglected, despite significant initiatives like the establishment of the Dhaka Stock Exchange and mutual funds by former president Ziaur Rahman after independence. However, the sustained growth of these initiatives was lacking, resulting in insufficient support for the capital market in terms of policies and other assistance.
Highlighting the fragmented approach to addressing market needs, the minister stressed the overreliance of both the government and private sector on high-interest bank loans due to the capital market’s underdevelopment. He also emphasized the importance of regulatory bodies working collaboratively, rather than in isolation, to strengthen the market.
Furthermore, the minister emphasized the need to deepen the market by creating a conducive environment that attracts quality companies, stating that a robust market environment is essential for sustainable growth. Moving away from reliance on international financial institutions like the World Bank and IMF, the minister discussed plans to raise funds through various bond offerings in global markets like New York, as well as local currency bonds.
Mir Nadia Nivin, Chairman of the Insurance Development and Regulatory Authority (IDRA), highlighted the potential for life insurance companies to provide long-term institutional capital to support the bond and equity markets, as well as infrastructure financing, which could significantly benefit the capital market.
BSEC Chairman Masud Khan outlined the commission’s recent initiatives aimed at restoring investor confidence, while special assistant to the prime minister on investment and capital market affairs, Tanvir Shahriar Ghani, attended the event as the guest of honor. Additionally, officials including Nazma Mobarek from the Ministry of Finance and BSEC commissioners Tanwir Habib Rahman and Hossain Sadat also shared their perspectives at the event.
