Bangladesh Bank governor Ahsan H Mansur has said that the capital market should be prioritised as an alternative source of revenue collection, given the lack of progress in traditional methods.
He highlighted the significant opportunity to attract foreign investment not just through direct investments but also via the stock market.
The governor made these remarks on Wednesday at an event titled 鈥楾he Next Frontier: Driving Development with Markets, Capital, and Innovation,鈥� organised by CARE Bangladesh at a hotel in the capital.
鈥榃e must increase our capacity for internal resource mobilisation, which is entirely possible,鈥� Mansur said.
He noted that foreign aid, which once accounted for 12鈥�14 per cent of GDP, has now significantly decreased. The country鈥檚 development must now be financed from domestic sources.
According to the governor, the economy faces three major challenges that require continuous efforts: controlling inflation, ensuring financial sector stability, and promoting innovation and financial literacy.
Noting the state of the banking sector, the governor said, 鈥榃e know the condition of the banking sector. A phased plan has been adopted to stabilise it, which will take three to four years to implement.鈥�
He also mentioned that financial inclusion is being ensured through transparency in loan disbursement, the inclusion of the unbanked population, and the expansion of agent banking in rural areas.
Speaking on the growth of mobile financial services and micro-credit, the governor said, 鈥榓pproximately 4,000 micro-loans are being disbursed daily, and about Tk聽7,000 crore has already been distributed through the bKash app.鈥�
The governor said the time has come to build a domestic market-based financing structure where the capital market will serve as a crucial foundation, rather than relying on development partners.