Face of capital market to change within one year: Amir Khosru

Finance Minister Amir Khosru Mahmud Chowdhury today said the face of Bangladesh's capital market will change within the next one year as the government has undertaken a comprehensive initiative to revive and deepen the market.

"We are trying to revive the capital market through a holistic approach. Inshallah, within the next one year, you will see a changed face of the Bangladesh capital market," he said.

The finance minister was speaking at the inauguration of the World Investor Week 2026 at the Krishibid Institution Bangladesh Auditorium in the capital.

On the occasion, Special Assistant to the Prime Minister for Investment and Capital Market Affairs Tanvir Shahriar Ghani spoke as the guest of honour.

Secretary of the Financial Institutions Division of the Ministry of Finance Nazma Mobarek and Chairman of the Insurance Development and Regulatory Authority Mir Nadia Nivin spoke as special guests.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan chaired the programme.

BSEC Commissioner Hossain Sadat gave the welcome address while another BSEC Commissioner Tanwir Habib Rahman made a power-point presentation at the event.

DSE Chairman Mominul Islam and Bangladesh Association of Banks (BAB) Chairman Abdul Hai Sarker also spoke.

Khosru said the government has already taken a number of measures to strengthen the capital market, including institutional reforms, automation, the establishment of the Central Depository Bangladesh Limited (CDBL) and development of necessary infrastructure.

But the market failed to achieve its expected potential because subsequent reforms and policy support did not continue adequately, he said.

"Some institutional changes took place, automation was introduced, CDBL was established and infrastructure was developed. But unfortunately, subsequently, things did not work," the minister continued.

He said the capital market now needs a practical "rescue operation" and "salvage operation", which may require difficult decisions for some stakeholders.

The finance minister said Bangladesh is now moving towards a fundamental change in its financial architecture instead of relying excessively on traditional sources of financing.

"Those days are over. We are changing the financial architecture of Bangladesh," he said, adding that the government also seeks to transform the country's public finance and private-sector financing structures.

He said the government wants businesses to raise funds through the market rather than relying heavily on banks at high interest rates.

"Why will you borrow so much money from banks at such high interest rates? There is no need," Khosru said, stressing the need to reduce the cost of funds through a stronger capital market.

He said the government is also working to develop a range of financial products for both the private sector and the government, including different types of bonds.

"We are talking about securities. We are moving towards securities. There are many products for the private sector and the government," he said.

Khosru said the government cannot continue financing commercial activities with taxpayers' money.

"Find your money in the market and make money to repay the government. Government cannot run enterprises and behave like a cheque writer," he said.

Referring to the International Monetary Fund (IMF), Khosru said Bangladesh needs to reduce its dependence on external financing and mobilise resources from the international market.

"We have cancelled the IMF programme. You know, you have seen it. I cancelled the IMF programme because its conditions were not acceptable to us," he said.

He said Bangladesh needs substantially larger annual financing to achieve its development ambitions and cannot depend solely on multilateral lenders.

"I am going to the market. I am going to raise my money," he said.The finance minister said the government is preparing to access international capital markets through different instruments and initiatives.

He said Bangladesh is considering floating a dollar bond in New York and launching a Bangladesh-dedicated fund in Hong Kong, alongside other instruments such as panda bonds, samurai bonds and local-currency bonds.

"We are changing the financial architecture of Bangladesh," he said, adding that the country needs to build its capacity to mobilise funds from international capital markets.

Khosru also referred to his recent engagement with the international financial community in New York.

He said he was surprised by the level of knowledge and interest among international investors about Bangladesh's capital market.

"I was surprised. I did not expect Wall Street to know so much about the Bangladesh capital market," he said.

He said the response reflected growing confidence in Bangladesh's leadership, deregulation initiatives and professional development of the capital market.

"We have taken the plunge. We have to go to Wall Street and send the message," he said.

Khosru said the capital market cannot develop through the efforts of the Bangladesh Securities and Exchange Commission (BSEC) alone.

"BSEC cannot do this alone. Everybody has to do it together," he said.

He identified regulators, banks, insurance companies, the National Board of Revenue (NBR), Bangladesh Bank, financial reporting institutions, accountants, exchanges, brokers and other market participants as important components of the capital-market ecosystem.

He said the stakeholders previously worked largely in isolation."Everybody has been functioning like islands, like silos. Everybody was working in their own place, but they were never connected," he said.

According to him, lack of coordinated efforts has remained one of the major weaknesses of Bangladesh's capital market.

"We never had a coordinated effort," he said, calling for a combined effort among all stakeholders to build a sustainable market ecosystem.

The finance minister also urged market participants and professional organisations to strengthen self-regulation, transparency and professional standards.

"Please self-regulate," he told the stakeholders.

He said market confidence and credibility depend on the ability of professional and self-regulatory organisations to maintain standards without excessive dependence on government intervention.

"Trust and credibility come when we develop self-regulatory institutions and build their capacity," he said.

He also urged financial reporting professionals and accountants to improve the quality and credibility of corporate financial statements, saying investors and the financial sector depend heavily on reliable financial

reporting.

Companies with good governance and a commitment to self-regulation would be more likely to participate in the capital market if the government and regulators could create an appropriate environment, Khosru said, adding, "If we create the environment, there is no dearth of companies. They are waiting."

The finance minister said confidence has started returning to Bangladesh's capital market following recent reform initiatives.

He said multinational companies are considering investment opportunities in Bangladesh and international investors are showing greater interest in the country's capital market.

"Many multinationals are thinking about bringing capital to Bangladesh," he said.

He, however, stressed that maintaining investor confidence requires professionalism, transparency, effective regulation and coordinated action by all stakeholders.

Khosru also recalled his experience as commerce minister, when exporters faced administrative difficulties in obtaining utilisation declaration certificates from the Export Promotion Bureau.

He said the government could transfer certain regulatory responsibilities to capable self-regulatory organisations if those organisations demonstrate that they can regulate themselves effectively.

"If you can self-regulate, then we can give you that authority," he said, citing the example to underline the importance of effective self-regulation.

The minister called upon all stakeholders in the capital-market ecosystem to work together instead of spending time debating past failures.

"We do not need to waste time discussing what happened in the past. Going forward, we have to think about professionalism, self-regulation and transparency," he said.

He expressed optimism that coordinated implementation of the reforms would strengthen the capital market and contribute to a broader transformation of Bangladesh's financial architecture.

The World Investor Week programme seeks to enhance investors' knowledge and awareness and encourage informed, safe and responsible investment in the capital market.