The capital market can play a pivotal role to reduce the investment gap in Bangladesh, said Rizwan Rahman, president of Dhaka Chamber of Commerce & Industry (DCCI).
His remarks came during a courtesy call with the Chairman of Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat-Ul-Islam on 19th December at the BSEC headquarter in Agargaon.
During the discussion, DCCI President Rizwan Rahman said as per the Global Infrastructure Hub Report, Bangladesh will need to invest $608 billion from 2016 -2040 in the infrastructure sector. The current trend indicates that Bangladesh will be able to meet $417 billion investment in the infrastructure sector leaving a financing gap of $192 billion from 2016-2040, read a press statement.
The DCCI chief added that the capital market has a huge potential to address the CMSME financing gap as well as encourage businesses to source long-term capital reducing dependence on banks and the non-banking financial institutions.
The Dhaka Stock Exchange SME platform needs to be effectively operationalised as well as listing rules for SME platform needs to be relaxed, he said.
Rizwan recommended that to create a vibrant secondary bond market, priority needs to be given in developing market infrastructure, simplification of the bond issuance process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies.
To encourage good companies and pursue well-performing large corporations for listing in the capital market, the tax difference between listed and non-listed companies should be rationalised, he further recommended.
BSEC Chairman Professor Shibli Rubayat-Ul-Islam said that BSEC already organised several road shows in the UK, USA and Switzerland to attract foreign investment in the capital market as well as to brand Bangladesh.
Another roadshow will be organised in Qatar next month, he informed.
He invited DCCI to join the Road Show to showcase Bangladesh's economic advancement. He also said that the government of Bangladesh is a business friendly one and we all should uphold the positive image of Bangladesh in the international arena.
He sought cooperation from the private sector to expedite country branding in a much wider manner. Bangladesh has made tremendous progress in many sectors especially in the infrastructure sector but these achievements did not get much promotion.
DCCI Vice President Monowar Hossain was present on the occasion.