Global funds eye BD market
Bangladesh is attracting growing interest from global fund managers, including JPMorgan, but restoring investor confidence will require stronger institutional governance and reliable audit reporting, Finance Minister Amir Khasru Mahmud Chowdhury said on Wednesday.
He made the remarks at the Financial Accounting and Reporting (FAR) Summit 2026, titled “Trustworthy Financial Reporting: What Really Matters,” organised by the Financial Reporting Council at the Pan Pacific Sonargaon Hotel in Dhaka. The minister highlighted ongoing concerns over financial indiscipline, market manipulation, and misreporting in the country.
“Despite major banking and capital market scandals, financial discipline has not yet been restored. Large sums were siphoned off from banks, and many companies entered the stock market through false representation,” Khasru said. “Through such misrepresentation, companies were listed, and their shares became highly traded, creating an uneven market.”
He warned that these irregularities have discouraged fundamentally strong companies from participating in the market, weakening fair competition and price discovery. Both the private sector and the banking sector are now facing serious capital shortages. “Many successful companies are struggling for capital, and many banks are also facing deficits,” he added.
Khasru also criticised conflicts of interest within the banking sector, citing cases where board members sat on loan approval committees. “A scenario in which board members sit on loan approval committees is, in my view, a clear conflict of interest. If I have a conflict of interest somewhere, I cannot sit there and make those decisions,” he said.
Deregulation Must Be Supported by Credible Audits
While the government is pursuing “serious deregulation” across the capital market, financial sector, and revenue administration-including the National Board of Revenue-the minister emphasised that deregulation alone will not restore investor confidence without credible auditing.
He called on professional accounting bodies, including the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants (ICMAB), to strengthen oversight of their members. “Their responsibility is not limited to annual meetings or social events; they must actively monitor what their members are doing,” Khasru said.
Financial Reporting Concerns Affect Investment
Rashed Al Mahmud Titumir, adviser to the Prime Minister on finance and planning, said that distorted financial information in the past had harmed genuine entrepreneurs while benefiting dishonest businesses, reducing foreign direct investment inflows.
Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted poor accounting practices as a key factor behind the collapse of thousands of garment businesses. Of the approximately 7,200 BGMEA members who once registered or began operations, only around 2,500-2,550 factories remain active.
Khasru pointed to the BGMEA’s self-regulation model in issuing exporters’ utilisation certificates as an example, suggesting that similar accountability is needed in accounting, auditing, and financial reporting.
He concluded that Bangladesh is attracting strong interest from international investors, but such investments will depend on confidence in the country’s financial reporting and governance systems.
Regulators, businesses, and professional bodies must adopt global-standard practices, restore trust, and build a transparent investment environment.
The summit was jointly organised by the Financial Reporting Council, ICAB, and ICMAB.
