Future economy must be investment-centric: Amir Khasru

Economy of future Bangladesh will be based on investment-centric model rather than depending on high-powered money and unsustainable levels of debt, said Amir Khasru Mahmud Chowdhury, former commerce minister and standing committee member of BNP.

The previous government kept Bangladesh's economy afloat through excessive borrowing and money printing, a model that is neither healthy nor sustainable, he said.

There is no alternative except for long-term investment to make the country's economy sustainable, and the capital market is the only source for long-term financing, he added.

Mr Chowdhury made the remarks while speaking as the chief guest at an event titled 'Foreign Investors Summit, 2025: Bangladesh Capital Market' held at a city hotel on Wednesday, hosted by BRAC EPL Stock Brokerage.

Mr Chowdhury said that news of the upcoming national election has already spread, and investors from both home and abroad are preparing to invest in Bangladesh.

He added that they are ready to meet the expectations of the country's people, as well as those of foreign investors.

"Foreign investors have shown increasing interest in investing in Bangladesh. We have seen proof of that-a huge delegation from Japan has recently visited Dhaka," Mr. Chowdhury noted.

Emphasising the need for sustainable economic growth, he said there is no alternative to increasing long-term investment to move the economy forward.

Highlighting the importance of a strong capital market for long-term financing, he said that economic stability and sustainable development are not possible without a robust capital market.

Expressing his strong commitment to the country's economic progress, Mr Chowdhury said Bangladesh could turn around within a very short time if there is political will.

Many foreign investors are waiting for the establishment of an elected political government, he said, adding that "BNP will own the capital market if elected in the next general election."

He noted that a tentative election schedule has already been announced, and the news has drawn attention both at home and abroad.

The BNP leader reiterated that an economy dependent on debt and money printing is not sustainable in the long run.

Currently, the country relies on the money market, mostly bank borrowing. However, banks deal in short-term deposits and cannot provide long-term financing, he said, adding: "This mismatch creates inefficiencies in the economy and only a strong capital market can resolve it."

After independence, he said, the private sector had been given a critical role in rebuilding the economy, which provided a lifeline.

"Much of the progress seen in the current economy is due to the private sector. To further enhance its role, we must open up the market to ensure equal opportunities and facilities for all," said the BNP leader.

Speaking at the summit, foreign portfolio managers underscored the need for improved capital market logistics, long-term policy and sustained political stability to maintain investor confidence and enthusiasm.

Takao Hirose, Managing Director of Contextual Investment LLC, cautioned that any form of instability or violence could deter foreign participation in Bangladesh's capital market.

He also stressed the need for a strong base of domestic investors and greater depth of the market to attract foreign investments.

Echoing similar concerns, Ruchir Desai, fund manager of Asia Frontier Investments Ltd, said interest rate caps and regulatory interventions left a negative impact on the confidence of foreign investors.

He also expressed the hope that Bangladesh's economy is poised for takeoff with sustained political stability.

Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, presented the keynote paper.

He discussed Bangladesh's economic prospects and challenges, noting that the country is poised to become the world's 9th largest consumer market by 2030.

Dr Reaz highlighted Bangladesh's strong cost competitiveness and digital readiness as key advantages in capitalising on global supply chain shifts.

"The expansion of the global supply chain beyond China offers Bangladesh significant opportunities in its journey toward high-income status," he said.

He also highlighted improved macroeconomic indicators such as rising remittances, increasing exports, declining inflation, and signs of recovery in the balance of payments and foreign exchange reserves.

Dr Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, said the interim government is working to establish a strong and well-governed capital market.

He noted that Bangladesh's economy is on the path to stability, even after the recent change in government brought about by a student uprising, with little impact on the country's gross domestic product (GDP).

"Many countries around the world fall into economic crisis following a change of government through uprisings or movements, but Bangladesh is an exception in this regard," said Dr. Anisuzzaman, who attended the event as a special guest.

Referring to the recent ranking of Bangladesh's capital market as the third-best performing among Asian countries in July, he said the market is gradually stabilising and now presents a favourable environment for investment.

Ahsanur Rahman, CEO of BRAC EPL Stock Brokerage, delivered the welcome speech, while Saiful Islam, president of DSE Brokers Association of Bangladesh, chaired and moderated the event.

Commissioners of Bangladesh Securities and Exchange Commission Mohammad Mohsin Chowdhury and Md Saifuddin, Chairman of Dhaka Stock Exchange Mominul Islam, Chairman of Chittagong Stock Exchange AKM Habibur Rahman, Chairperson of BRAC Bank Meheriar M Hasan, and Chairperson of BRAC EPL Stock Brokerage Ms. Fahima Choudhury also spoke.

Zahid Hussain, former lead economist of World Bank Dhaka office, Abdul Hai Sarker, chairman of the Bangladesh Association of Banks, and Selim RF Hussain, former managing director of BRAC Bank, also spoke at the event.

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