Foreign experts for market reforms to avoid conflict of interests: CA press secretary

The interim government has planned to hire foreign experts to bring rigorous reforms to the capital market so that undue interference of vested interests can be avoided, said the chief adviser's press secretary.

Many vested interests exist within the stock market. Historically, those who had reformed the market protected the interests of one or the other group, said Shafiqul Alam. "As a result, big players have always got advantage and general investors have been cheated."

He was speaking as chief guest at the 'CMJF Talk' organised by the Capital Market Journalists Forum (CMJF) on Sunday at the CMJF Auditorium in the capital. CMJF President SM Golam Samdani Bhuiyan presided over the event conducted by its General Secretary Abu Ali.

To make sure reforms are executed without any conflict of interests in the process, Mr Alam said, foreign experts, who would not be benefitted from Bangladesh's capital market, would be tasked with delivering actionable reform recommendations within three months.

"Foreign experts will come and tell us what to do in the stock market and action will be taken accordingly," said the press secretary to the chief adviser. That way the market can be reshaped to the international standards.

Apart from engaging foreign experts in market reforms, the chief adviser at a meeting on May 11 also called for measures for the listing of profitable state-owned enterprises and multinational companies where the government has stakes.

Responding to a query, the press secretary said, "The stock market is not rocket science and it is not that a foreigner will not understand the situation [equity market] in Bangladesh."

Reforms have been executed in stock markets across the world, including in Sri Lanka and India. Now, the markets of Sri Lanka and India are in a good position.

Mr Alam said the entire capital market had turned into a den of robbers during the Awami League-led government and that one after another group of robbers took control of the market while general investors fell victim to frauds and lost their capital.

Referring to the recent meeting with Chief Advisor Professor Muhammad Yunus, Mr Alam said, "This topic came up very strongly, as to why we are unable to take action against those involved in malpractices for years."

Even after reform initiatives were taken under the interim government, they have been obstructed by vested interests. The interim government is not in favour of short-term changes in the market, the press secretary to the CA said. Rather, the government has been working for long-term development.

It is working for broader economic development to make Bangladesh a manufacturing hub where global investors will invest, said Mr Alam.

"The country's economic reforms are underway. After the reforms, the economic situation will improve and positive impacts will automatically be reflected in the stock market."

Some financial indicators, such as inflation, are already showing signs of improvement. Inflation, as the central bank governor recently said, is expected to fall to 5 per cent by the end of this year from more than 9 per cent at present.

"The currency has been floating [freely] for two weeks. But the taka has not depreciated." Foreign direct investments (FDI) will increase in the coming years if the efficiency of the Chattogram port improves, Mr Alam said.

The Chattogram port will become more efficient and earn more revenue if a foreign operator is appointed to run the New Mooring Container Terminal (NCT), he said.

"We are not giving the Chattogram port to anyone. The government is talking about the appointment of Dubai-based global port operator DP World to operate the New Mooring Container Terminal more efficiently.

"If we can quickly advance the efficiency level in this Chattagram port, it will have a multiplier effect on the entire economy of Bangladesh."

babulfexpress@gmail.com