Robust capital market essential for sustainable industrialization: NBR chief – Bangladesh Sangbad Sangstha (BSS)

Report on the Importance of a Robust Capital Market for Sustainable Industrialization

Introduction

On March 8, 2026, Md Abdur Rahman Khan, Chairman of the National Board of Revenue (NBR), addressed the critical role of a robust capital market in achieving sustainable industrialization and employment generation. His remarks were delivered at a seminar titled “Challenges and Way Forward for the New Government in the Stock Market”, organized by the Capital Market Journalists’ Forum (CMJF) in Dhaka.

Capital Market and Sustainable Industrialization

Md Abdur Rahman Khan emphasized that sustainable industrialization, a key component of the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure), cannot be realized without a strong capital market.

1. Public Company Concept: He highlighted that global industrial revolutions were driven by the public company model, where millions of small investors contributed capital, fostering inclusive economic growth.
2. Equity vs. Debt Financing: Khan pointed out the current challenge where entrepreneurs rely heavily on short-term bank loans for long-term industrial projects, creating financial mismatches and banking sector difficulties. He advocated for a shift towards equity financing through the capital market, which aligns with sustainable financial practices by sharing profits based on performance and avoiding unsustainable debt burdens.

Challenges in the Capital Market

• Investor Vulnerability: Many companies with attractive prospectuses have failed or closed, exposing investors to risks. This situation undermines SDG 16 (Peace, Justice, and Strong Institutions) by highlighting the need for transparency and accountability.
• Regulatory Responsibility: The Chairman stressed the importance of rigorous certification of prospectuses and accounts to ensure only companies capable of delivering long-term returns are listed, demanding 100% honesty and accountability from all market participants.
• Mutual Fund Performance: He expressed concern over the poor governance and market value of mutual funds, which are intended to be managed by financial experts, indicating a need for improved financial management and investor protection.

Government Initiatives and Policy Measures

The current government’s vision aligns with SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) through the promotion of Economic Democracy. Key initiatives include:

• Distribution of benefits to common people, farmers, and the poor via family cards and farmer cards.
• Implementation of a comprehensive digital and linked economic framework to minimize corruption and misdeclaration, enhancing transparency and accountability.
• Rationalization of the Capital Gains Tax to 15% for gains exceeding Taka 50 lakh, aiming to create a more investor-friendly environment.

Future Outlook and Recommendations

1. Support for Market Growth: The NBR is committed to supporting the capital market while ensuring revenue maximization for national interests.
2. Enforcement and Accountability: Strict enforcement of existing rules and regulations will be prioritized to hold accountable those who deceive ordinary investors, reinforcing trust in the market.
3. Maintaining Reforms and Discipline: Continued reforms and disciplined market practices are essential to foster sustainable growth in the capital market.

Conclusion

The seminar underscored the indispensable role of a robust capital market in achieving sustainable industrialization and employment generation, directly contributing to multiple Sustainable Development Goals. The emphasis on transparency, accountability, and equitable economic participation reflects a strategic approach to fostering inclusive and sustainable economic development in Bangladesh.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • The article emphasizes sustainable industrialization and employment generation, which are core to SDG 8.
   • Focus on economic democracy and ensuring benefits reach common people aligns with promoting inclusive economic growth.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The need for a robust capital market to support sustainable industrialization directly relates to SDG 9.
   • Encouraging equity financing over short-term bank loans supports innovation and infrastructure development.
3. SDG 16: Peace, Justice, and Strong Institutions
   • Calls for honesty, accountability, and strict enforcement of regulations in the capital market relate to building strong institutions.
   • Efforts to curb corruption through digital and linked frameworks align with SDG 16 targets.
4. SDG 1: No Poverty
   • The government’s vision of Economic Democracy to ensure benefits reach farmers and the poor connects with SDG 1.

2. Specific Targets Under Those SDGs Identified

1. SDG 8 Targets
   • 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
   • 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
2. SDG 9 Targets
   • 9.2: Promote inclusive and sustainable industrialization and, by 2030, raise significantly industry’s share of employment and gross domestic product.
   • 9.3: Increase the access of small-scale industrial and other enterprises to financial services, including affordable credit.
3. SDG 16 Targets
   • 16.5: Substantially reduce corruption and bribery in all their forms.
   • 16.6: Develop effective, accountable, and transparent institutions at all levels.
4. SDG 1 Targets
   • 1.3: Implement nationally appropriate social protection systems and measures for all.

3. Indicators Mentioned or Implied to Measure Progress

1. Capital Market Performance Indicators
   • Number and sustainability of companies listed on the stock market (implied by reference to companies closing or failing).
   • Performance and governance quality of mutual funds.
   • Capital Gains Tax rationalization impact on investor participation.
2. Financial Inclusion and Access
   • Extent of entrepreneurs shifting from short-term bank loans to equity financing.
   • Access to financial services by small-scale enterprises and investors.
3. Governance and Accountability Indicators
   • Implementation of digital and linked frameworks to reduce corruption.
   • Enforcement actions taken against market deception and irregularities.
4. Social Protection Coverage
   • Distribution and utilization of family cards and farmer cards to ensure benefits reach the poor and farmers.

4. Table of SDGs, Targets, and Indicators

Source: bssnews.net