Strong capital market key to Bangladesh's industrial future, says NBR Chief

A strong and disciplined capital market is essential for Bangladesh's industrialisation and long-term economic growth, National Board of Revenue (NBR) Chairman Abdur Rahman Khan said on Sunday, stressing that the country must focus on proper implementation of existing laws to restore investor confidence.

"Industrialisation is not possible without a strong capital market," he said, adding that although Bangladesh has adequate legal frameworks, the main challenge lies in ensuring effective enforcement and good governance.

He made the remarks while speaking as a special guest at a seminar organised by the Capital Market Journalists Forum (CMJF), a platform of journalists covering the stock market, on challenges facing the capital market and the priorities for the new government.

The NBR chairman said the concept of public limited companies emerged during the Industrial Revolution, when ordinary people invested small amounts of capital to build large industrial enterprises. 

However, he noted that Bangladesh has yet to develop its capital market in line with that global model.

He explained that bank deposits are generally short-term in nature, whereas industrial investments require long-term financing. As a result, banks alone cannot adequately support industrial expansion over extended periods.

"In contrast, when funds are raised through equity in the capital market, companies do not have to repay that capital. If the company performs well, investors benefit through dividends," he said.

Khan noted that investors enter the capital market in expectation of higher returns, which means that only companies with strong fundamentals, long-term profitability and transparent track records should be listed.

"In the past, many companies were listed without meeting the expected standards," he said. "Several businesses later shut down and factories closed, leaving investors to bear the losses."