Written by The Banking Post
BNP Standing Committee member and former Commerce Minister Amir Khasru Mahmud Chowdhury has said that a vicious cycle has long been entrenched in Bangladesh’s stock market. He emphasized the need to break away from this and establish a “virtuous cycle.”
He said, “There is excessive control over the stock market. As a result, regulatory bodies cannot function independently. Moreover, there is a lack of capacity within the regulators. This is not limited to the stock market—it’s a reflection of the entire financial sector.”
Amir Khasru made these remarks on Monday (July 14) during a capital market workshop organized jointly by the Economic Reporters’ Forum (ERF) and the DSE Brokerage Association (DBA), the organization of brokerage house owners of the Dhaka Stock Exchange (DSE).
He added, “Our economy must be democratized. Without economic democratization, true economic freedom is not possible. That is the path we must now take. During BNP’s tenure, there were no stock market scams or financial sector scandals. But the past governments have pushed the financial sector to the brink of destruction.”
The event was held at the ERF office in Paltan, Dhaka. Among others present were DSE Chairman Mominul Islam, Chittagong Stock Exchange (CSE) Chairman A.K.M. Habibur Rahman, DBA President Saiful Islam, and DSE Director Minhaz Mannan. The event was presided over by ERF President Daulat Akhtar Mala and conducted by Acting General Secretary Manik Muntasir.
Amir Khasru further said that if BNP returns to power, political appointments will not be made to regulatory bodies such as Bangladesh Bank or the Bangladesh Securities and Exchange Commission (BSEC). He claimed that even during BNP’s previous term, no such political appointments were made—hence, banks did not collapse, and there was no looting of the stock market.
He also mentioned that, if BNP is in power, many government functions related to trade and commerce will be handed over to trade associations. For example, he said that in the past, importers in the ready-made garments sector had to obtain Utilization Declaration (UD) approvals from the Export Promotion Bureau (EPB), which caused delays and complications. But when he was the commerce minister, this responsibility was transferred to the BGMEA (Bangladesh Garment Manufacturers and Exporters Association), simplifying the process significantly.
He said, “To increase people’s participation in economic activities, we must democratize both politics and the economy. If only politics is democratized and the economy is not, then the system won’t function properly. That’s why one of BNP’s major goals is to ensure the democratization of the economy.”
Amir Khasru added that without economic democratization, people’s participation and confidence in the economy will not grow, and inclusive participation in economic development cannot be ensured. However, if everyone is involved, they can contribute actively from their own positions.
He also remarked that the stock market has become a highly neglected and unimportant area in the country’s economy. To fix the stock market, a comprehensive reform approach is needed. Institutions like SEC, DSE, Bangladesh Bank, and others involved in the market must work together in a coordinated way. Immediate decisions are needed regarding poorly performing companies already listed in the market. These efforts are crucial to restoring investor confidence.
He concluded, “In the future, if BNP comes to power, we will embrace the stock market. Because true development of the capital market is not possible unless the government takes ownership of it.”
Meanwhile, DSE Chairman Mominul Islam said, “Regulations must become more market-oriented. The market has never played a truly relevant role in the country’s economy, nor has it been part of major economic decisions. We must break out of this mindset.”
CSE Chairman A.K.M. Habibur Rahman stated that the market currently lacks any good new shares. In the past nine months, only one company has been listed. Over the past few years, very few companies have entered the market, which is insufficient. Although there had been some market development, it was eventually undermined by manipulations of various kinds.
