Capital market key to reducing infrastructure financing gap, DCCI President says

President of Dhaka Chamber of Commerce & Industry (DCCI) Mr Rizwan Rahman has said the tax difference between listed and non-listed companies should be rationalised to encourage good companies and well-performing large corporate firms for listing in the capital market.

He said this during a courtesy call with the Chairman of Bangladesh Securities and Exchange Commission Professor Shibli Rubayat-Ul-Islam at the BSEC headquarter in the capital’s Agargaon area on Sunday, said a press release.

During the discussion, DCCI president said according to the Global Infrastructure Hub Report, Bangladesh will need to invest US$608 billion between 2016 -2040 in the infrastructure sector.

“The current trend indicates that Bangladesh will be able to meet $417 billion investment in the infrastructure sector, leaving a financing gap of $192 billion from 2016-2040. The capital market can play a pivotal role to reduce the investment gap in Bangladesh,” Mr Rahman said.

He also said that the capital market has a huge potential to address the CMSME financing gap as well as encourage businesses to source long-term capital, reducing dependence on banks and NBFIs. The DSE SME platform needs to be effectively operationalised as well as listing rules for SME Platform need to be relaxed.

“To create a vibrant secondary bond market, priority needs to be given to implementing policy to develop market infrastructure, simplification of the bond issuance process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies.”

BSEC Chairman Professor Shibli Rubayat-Ul-Islam said BSEC already organised several roadshows in the UK, USA and Switzerland to attract foreign investment in the capital market and to brand Bangladesh.

Saying the next roadshow will be held in Qatar next month, he invited DCCI to join roadshows to showcase Bangladesh’s economic advancement.

Professor Rubayat sought cooperation from the private sector to expedite the country's branding.

“Bangladesh has made tremendous progress in many sectors, especially in the infrastructure sector, but these achievements did not get much promotion”, he said.

DCCI Vice President Monowar Hossain was also present at the discussion.