BNP Standing Committee member Amir Khasru Mahmud Chowdhury on Tuesday said Bangladesh’s economy, including its capital market, is being constrained by excessive regulation and needs deregulation and liberalisation to recover.
He made the remarks while speaking at a seminar titled “Post-Election 2026 Horizon: Economy, Politics, and Capital Market”, organised by BRAC EPL Stock Brokerage at a city hotel.
Referring to the political situation, Khasru said the country is heading toward February 12 election, which he described as a turning point. “After 16 to 18 years, people will finally have the opportunity to form a government through their votes; one that will be accountable to the people,” he said.
Khasru noted that global fund managers and expatriate Bangladeshis are waiting for a credible election and a stable political environment before investing in the capital market.
He identified policy distortions as a major obstacle, arguing that many existing laws conflict with free-market principles.
“You either have a market system or you don’t. To restore confidence, the market must be allowed to function independently,” he said.
The former commerce minister said the economy has been stuck in a “low-level equilibrium” for the past 18 months and called for market-driven policies on exchange rates, capital markets and trade to break the cycle.
Highlighting weaknesses in the capital market, Khasru pointed out that Bangladesh’s market-capitalisation-to-GDP ratio is below 10 percent, compared with nearly 60 percent in India and 40 percent in Pakistan.
He said the capital market has remained dysfunctional for more than a decade, forcing excessive reliance on banks.
This reliance, he argued, has led to structural problems, with banks using short-term deposits for long-term lending.
He also alleged that arbitrary loans were taken and a large portion laundered abroad, severely damaging the financial sector.
Khasru criticised the government’s dependence on IMF loans with strict conditions for large projects, suggesting instead that government agencies, municipalities or railways could issue municipal or sovereign bonds.
He said international institutions such as JP Morgan could show interest in Bangladeshi bonds if transparency is ensured.
He further warned about the rising volume of non-performing loans (NPLs), which he said have officially reached nearly 36 percent and could exceed 40 percent if accounting “window dressing” were removed.
Calling for a clean-up of bad loans, he said transparency is essential to restoring investor confidence.
Asked about BNP’s plans for first 100 days if elected, Khasru said the party would prioritise listing quality private and state-owned enterprises on the stock market.
He stressed that institutions must be allowed to operate independently, adding, “We want the market to run like a market.”
The seminar also featured a presentation by economist and RAPID chairman Dr MA Razzaq and was attended by senior regulators, bankers and foreign investors.
SH
