Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh’s economy and capital market are in deep trouble following the failure of previous measures, describing the government’s current efforts as a “rescue operation” that will require painful decisions.
“Everything has failed and the failure is so big that now the economy and capital market are in deep trouble. Practically right now it is a rescue operation, a salvage operation... We have no option but to go for painful decisions,” he said.
The finance minister made the remarks on Sunday while speaking at the inauguration of World Investor Week 2026, organised by the Bangladesh Securities and Exchange Commission (BSEC) at the KIBC Auditorium in Dhaka.
The event is being held under the theme “Investor Resilience, Digital Deception and Scam Alert”, focusing on investor protection, market resilience and risks from digital fraud and deception.
Khosru said Bangladesh also needs to reduce its dependence on bank borrowing and lower the cost of funds to remain competitive globally.
“Why borrow so much money from banks at such high interest? There is no need. If I cannot reduce the cost of funds, we cannot be competitive in the world,” he said.
He also outlined a broader shift in Bangladesh’s financial architecture, saying the country could no longer depend on traditional sources of external financing to drive economic development.
“The confidence I saw on Wall Street surprised me... We have been stuck round and round... The World Bank, IMF, Asian Development Bank will give money and we will run the country—that era is over. We are changing the financial architecture of public finance and the private sector,” he said.
The minister also called for fundamental changes in the capital market, arguing that it needs good companies and investors who believe in corporate governance and self-regulation.
“In a casino, no good company will list. People and good companies that believe in good governance and self-regulation must be brought in,” he said.
He further stressed the need to eliminate paper-based processes from the capital market.
“No Paper Transaction, Nothing Paper—all activities relating to listing applications, permissions, and decision-making must henceforth be completed online,” he said.
BSEC Chairman Masud Khan said the regulator would strengthen regulation where necessary while simplifying processes wherever possible.
“Our philosophy is simple: regulate where necessary, simplify where possible,” he said.
He said investor confidence could not be restored through speeches or administrative intervention alone.
“Trust cannot be built through speeches or administrative intervention. It must be earned through integrity, transparency, accountability, and fair enforcement,” Masud Khan said.
He said Bangladesh’s capital market had failed to keep pace with the country’s economic growth for two decades.
“The capital market has failed to keep pace with Bangladesh's economic growth for two decades... The market cannot reflect the economy until more of the economy is in the market,” he said.
The BSEC chairman highlighted several structural measures taken by the commission, including the removal of the floor price and plans to gradually withdraw existing floor-price mechanisms so market forces can determine valuations.
He also said the regulator plans to accelerate IPO approvals after a two-year drought in new listings.
“Now we will drastically cut approval time and approve IPOs within three months,” he said.
On digitalisation, Masud Khan said automation would be central to preventing fraud and improving transparency across the market.
“Digitization is our new currency. All reports from issuing companies and market intermediaries will be automated using XBRL,” he said.
Referring to past brokerage fraud and investor embezzlement, he said such incidents could no longer be allowed to happen. He called for unified brokerage back-office software, automated order management and the elimination of physical signatures.
The BSEC chairman also stressed the need to develop the corporate bond market and increase institutional participation. He said there was “no way to deepen the capital market without a corporate bond market” and disclosed that the commission had approved Tk 3,500 crore in bonds on the condition that they be listed on the main board for trading.
He also said rules would be framed to encourage provident and gratuity funds to allocate a portion of their funds to corporate bonds and equities.
The World Investor Week programme was attended by senior officials from the government, BSEC, DSE, CSE, the brokerage industry and other financial-market institutions. The official programme lists Finance Minister Amir Khosru Mahmud Chowdhury as chief guest and Tanvir Shahrir Ghani, Special Assistant to the Prime Minister for Investment and Capital Market Affairs, as guest of honour.