Dhaka: BNP Standing Committee member Amir Khosru Mahmud Chowdhury on Tuesday highlighted the pressing issue of ‘overregulation’ hampering Bangladesh’s economy and capital market, urging a shift towards deregulation and liberalisation for economic recovery. He shared these views at a seminar titled ‘Post-Election 2026 Horizon: Economy, Politics, and Capital Market’, organised by BRAC EPL Stock Brokerage at a city hotel.
According to United News of Bangladesh, Khosru discussed the current political landscape, noting the approach of the 12 February election, which he described as a long-awaited opportunity for the people to elect a government accountable to them. He mentioned that global fund managers and expatriate Bangladeshis are looking forward to a fair election and a stable environment to boost investment in the capital market.
Khosru pointed out existing policy distortions as significant barriers, stating that conflicting laws with free-market principles hinder confidence in the market. He argued for the necessity of allowing the market to operate independently to foster trust among investors.
The BNP leader expressed concern over the economy’s stagnation in a ‘low-level equilibrium’ over the past 18 months. He advocated for market-driven policies concerning exchange rates, the capital market, and trade to break this cycle.
Highlighting the disparity in market capitalisation, Khosru noted Bangladesh’s market-cap-to-GDP ratio is below 10 per cent, compared to nearly 60 per cent in India and 40 per cent in Pakistan. He criticised the long-standing dysfunction of the capital market, which has led to over-reliance on banks, resulting in a mismatch where short-term deposits are used for long-term lending.
Khosru accused the financial sector of being devastated by arbitrary loans and significant portions of funds being laundered abroad. He disapproved of the current trend of borrowing from the IMF with stringent conditions for large projects, suggesting instead that government entities issue municipal or sovereign bonds.
He asserted that institutions like JP Morgan might show interest in Bangladeshi bonds if a transparent environment is established. Khosru further highlighted the alarming levels of non-performing loans (NPLs) in the banking sector, officially nearing 36 per cent, and warned that the actual figure could be higher.
Khosru called for transparency in financial reporting, urging the disclosure of actual financial conditions to restore investor confidence. He stated that if elected, his party would prioritise the listing of high-quality private and state-owned enterprises on the stock market while ensuring independent and transparent operations of government agencies.
The seminar featured presentations and discussions by notable figures, including Dr MA Razzaq, economist and chairman of think tank RAPID; M Saifuddin CFA, Commissioner of BSEC; Mashrur Arefin, CEO of City Bank; and foreign investors like Mattias Martinson and Takao Hiros. The event was moderated by Saiful Islam, Director of BRAC EPL Stock Brokerage.