The capital market, a key source of long-term financing for industrial growth and business expansion, remains underdeveloped in Bangladesh due to past irregularities, weak regulations, and overreliance on bank loans.

Despite its potential to support sustainable economic growth, the market has seen no new Initial Public Offerings (IPOs) for over a year—an unprecedented situation in the country’s financial history.

Experts blame a bank-dependent corporate culture and lack of adequate incentives for listing. Between 2019 and 2024, 52 companies raised nearly BDT 8,000 crore through IPOs, but the process has stalled since March 2024. Stakeholders are calling for urgent policy reforms, including better tax incentives, easier IPO procedures, and stronger regulatory oversight to revive investor confidence.

Without a vibrant capital market, Bangladesh risks slower industrialization, fewer jobs, and increased pressure on the banking sector, threatening overall economic stability, especially ahead of its LDC graduation.