Written by The Banking Post
Bangladesh’s economy should shift from reliance on excessive borrowing and money printing to a sustainable, investment-driven model, BNP Standing Committee member and former commerce minister Amir Khasru Mahmud Chowdhury has said.
Speaking at the Foreign Investors Summit 2025: Bangladesh Capital Market, hosted by BRAC EPL Stock Brokerage in Dhaka on Wednesday, Khasru stressed that long-term investment — particularly through the capital market — is essential for sustainable growth.
“The previous government kept the economy afloat through high-powered money and unsustainable debt. This is not a healthy model,” he said. “The capital market is the only viable source of long-term financing.”
Khasru noted that anticipation of the upcoming national election has already drawn interest from both domestic and foreign investors. “A large Japanese delegation recently visited Dhaka, showing clear signs of growing interest,” he added.
He pledged that if elected, BNP would make the capital market a priority, pointing out that many foreign investors are waiting for an elected government before committing funds. “Banks deal in short-term deposits and cannot provide long-term financing. Only a strong capital market can resolve this mismatch,” he said.
Foreign portfolio managers at the summit echoed the need for long-term policy consistency, political stability, and improved market infrastructure to boost investor confidence. Takao Hirose of Contextual Investment LLC warned that instability or violence could deter foreign capital, while Ruchir Desai of Asia Frontier Investments Ltd highlighted how interest rate caps and regulatory overreach had hurt sentiment.
Policy Exchange Bangladesh Chairman Dr M Masrur Reaz, in his keynote, projected Bangladesh to become the world’s 9th largest consumer market by 2030, citing strong cost competitiveness and digital readiness as advantages in capturing global supply chain shifts. He pointed to rising remittances, increasing exports, declining inflation, and recovering foreign reserves as signs of macroeconomic improvement.
Special guest Dr Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, said the interim government is committed to building a well-governed capital market. He noted that Bangladesh has maintained economic stability despite a recent political transition, with the capital market ranked the third-best performer in Asia in July.
The event was chaired by DSE Brokers Association President Saiful Islam and attended by top industry leaders, market regulators, and economists, including Bangladesh Securities and Exchange Commission commissioners, the chairpersons of the Dhaka and Chittagong stock exchanges, and senior banking executives.
