BD needs to come out of its 'low-growth equilibrium' , says Amir Khasru

The country needs to break out of the 'low-growth equilibrium' it has settled into, said BNP Standing Committee Member Mr Amir Khasru Mahmud Chowdhury.

"We have been maintaining the economy at a lower level of equilibrium. We want to jump from here," he said while speaking as the guest of honour at a discussion titled 'Post-Election 2026 Horizon: Economy, Politics and Capital Market', organised by BRAC EPL Stock Brokerage Ltd at a city hotel on Tuesday.

Mr Chowdhury also said if elected, the BNP-led government would opt for 'large-scale reforms and deregulation' across the economy.

"The country is now gripped with 'over regulation'. A big challenge for the next government will be to bring the economy out of this situation."

The key regulatory bodies would be staffed with experienced professionals and allowed to function independently.

The former commerce minister placed particular emphasis on restoring transparency and depth in the capital market, which he labelled as 'non-functional in a real sense' due to weak confidence of investors and lack of liquidity.

Bangladesh's market capitalisation remains in single digits as a percentage of its GDP, far below the regional peers. India's market capitalisation is around 60 per cent of the GDP, in Pakistan it is about 40 per cent, while in the United States it is roughly double the size of its economy, he said.

"The capital market is very important for financing Bangladesh's long-term needs. Long-term investments should be financed from the capital market, not banks. Interestingly, in our country it is exactly the opposite."

He mentioned that excessive reliance on foreign borrowing could have been reduced had the government made greater use of the capital market.

"In the past, the government has depended too much on foreign debt. That pressure could have been eased through capital market financing, but this is not practised in Bangladesh."

The BNP leader said the future governments should consider issuing project-based bonds, including municipal and sovereign bonds, to finance infrastructure such as aircraft purchase, railways, and urban services.

"Even institutions like JP Morgan may be interested in issuing bonds for Bangladesh, if we can create the right environment."

He also said several globally known fund managers, including members of the Bangladeshi diaspora, were waiting to invest; but they remained on the sidelines until an elected government was in place.

"Foreigners are constantly coming to Bangladesh, but they are not investing. They are waiting for the election. In fact, everyone will invest in an elected government (regime)."

Bangladesh is in a relatively favourable position compared with the countries like Vietnam and China, which are currently facing tariff pressures from the United States.

About the banking sector, Mr. Chowdhury said the crisis had deepened due to the long-standing practice of 'arranging or masking' bad loans.

"We have to have faith in market management, and let the market work independently. If we can do that, many of our problems will be solved," he added.

The discussion was attended by Advocate Atiqur Rahman, a shura member of Jamaat-e-Islami, Bangladesh Securities and Exchange Commission Commissioner Md Saifuddin, RAPID Chairman Dr. Mohammad Abdur Razzak, and Association of Bankers, Bangladesh (ABB) Chairman Mashrur Arefin. Investors from some 250 foreign institutions also participated virtually.

jasimharoon@yahoo.com