Bangladesh's stock market has become a 'den of robbers': Shafiqul Alam
The press secretary of the chief adviser said whoever took responsibility for capital market reforms in the past had served the interests of various vested groups
The country's capital market has turned into a "den of robbers", where small investors fall victim to deception and lose their capital, Shafiqul Alam, press secretary to the chief adviser, has said.
"Large players always benefited, while small investors, often using shares as a savings tool, were repeatedly deceived and manipulated," he said at the CMJF Talk event organised by the Capital Market Journalists Forum (CMJF) in the capital today (25 May).
"Those entrusted with reforming the capital market always served vested groups. Reforms were driven not by public interest but by factional agendas," he said at the CMJF Talk event organised by the Capital Market Journalists Forum (CMJF) in the capital today.
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"No government has historically taken proper action against them," Shafiqul added at the event presided over by CMJF President Golam Samdani Bhuiyan, and moderated by General Secretary Abu Ali.
Referring to a recent meeting with the chief adviser, Shafiqul said there was a strong discussion on why meaningful action is lacking. "The stock market has become a refuge for looters," he said.
"Whenever one group of looters departs, another arrives. Even those brought in to reform the system are often just another set of looters," he added.
Quoting the chief adviser, Shafiqul said only strong and deep reforms could restore investor trust. "Prof Yunus stressed that those leading the reforms must be free from group interests."
A set of foreign experts will soon be engaged to recommend global-standard reforms within three months, he said. Swift action will follow their recommendations to prevent any group from holding the market hostage.
"Many people surrounding influential figures have become millionaires through the market. That era must end," he said, adding that reforms must protect the interests of ordinary shareholders.
He expressed hope that with sound economic fundamentals and deep reforms, Bangladesh's stock market could quickly reach new heights.
The government is also working to establish a broader economic platform to drive growth, which will naturally impact the capital market, Shafiqul said.
Referring to the financial sector, he said Bangladesh's banking system was in ruins, likened by the chief adviser to a post-earthquake scene. "We are trying to lift it from the depths to the peaks."
On currency reforms, he said the taka was floated two weeks ago without depreciation, signalling positive market sentiment towards ongoing reforms.
He projected a surge in foreign direct investment once the current government's term ends, due to deep reforms planned at Chattogram port. "We want global giants to manage and invest in it."
Discussions are underway with DP World, AP Moller–Maersk, and Singapore's PSA to boost port efficiency. This, he said, would attract investment from major global manufacturers.
"Global protectionism has opened a window for Bangladesh," he said. "Low-cost manufacturers seek destinations with minimal tariffs and cheap labour – and Bangladesh is now the best option."
Most of the 100 economic zones, approved during the tenure of ousted premier Sheikh Hasina, remain vacant, serving as buffalo grazing fields, he said. "Large sums of money were spent acquiring land for these zones, but investors are not coming, primarily due to the lack of port capacity."
The interim government aims to turn Bangladesh into a manufacturing hub, but port efficiency must be transformed. "We lack the technology and management skills to do this alone."
Foreign companies could bridge that gap, and if they manage ports efficiently, it will attract investors who are currently watching Bangladesh closely, he added.
"FDI growth will boost the capital market. If the macroeconomy remains stable, the capital market will be compelled to grow," said Shafiqul.
Inflation control remains a challenge. "We raised interest rates above 10 percent and now inflation is starting to fall," he said. "We hope to bring it below 1 percent by year-end."
He revealed that 150 Chinese investors, led by China's commerce minister, are set to visit Bangladesh in June, potentially accelerating job growth.
On the National Board of Revenue reform, he said splitting the NBR was a key priority to address weak tax collection. "The government has acted, and we expect improved tax revenue soon."
