Stating that Bangladesh’s banking sector is suffering from a serious capital deficit caused by massive money laundering, Finance Minister Amir Khasru Mahmud Chowdhury on Sunday said the government is actively seeking alternative financing mechanisms and dedicated investment funds to drive countrywide economic growth.
Speaking as the chief guest at a luncheon discussion titled "Building Investor Confidence: From Policy Reforms to Effective Implementation" hosted by the American Chamber of Commerce in Bangladesh (AmCham) at a city hotel, he emphasized that traditional high-speed banking alone can no longer satisfy the country's investment needs under current constraints.
"There is a serious deficit in the banking sector as a huge amount of money has been laundered out of the country. Depositors are struggling to get their money back, making immediate capitalization essential," Khasru said.
He noted that in response to this structural shortfall, Bangladesh is architecting alternative financial channels and receiving positive responses from foreign countries and international organizations to create dedicated investment funds.
Addressing structural bottlenecks in business and trade, the minister acknowledged that Bangladesh remains an "over-regulated" country where existing government regulations and regulatory systems are not functioning effectively.
He also outlined several reform initiatives undertaken by the government.
Khasru said the National Board of Revenue (NBR) is undergoing structural division to separate its policy-making functions from tax execution.
The government plans to fully automate investor services, tax processing, and customs logistics to create a hassle-free, business-friendly environment, he said.
The minister said the primary allocation in the national budget will be dedicated to implementing comprehensive structural reforms.
He said Bangladesh is pivoting towards advanced Information and Communication Technology (ICT) and Artificial Intelligence (AI) management to enhance administrative efficiency.
Addressing questions regarding energy shortages, Khasru asserted that overcoming the energy crisis requires a long-term strategic approach rather than short-term stopgap solutions.
Opening the discussion, AmCham President Syed Mohammad Kamal highlighted that business community members are prioritizing energy security, stable and predictable tax structures, business-friendly policies, and overarching macroeconomic stability.
Echoing positive prospects for investors, HSBC Bangladesh Chief Executive Officer Mahbubur Rahman noted that Bangladesh possesses the essential ingredients to attract foreign investment, citing a market of 18 crore people, a flourishing export sector, and growing remittance inflows that help maintain currency and foreign exchange stability.
The high-level AmCham event brought together prominent businessmen, economists, senior government officials, foreign trade delegates, and AmCham members operating in Bangladesh.
