B Mirror Report: The government has announced a series of major reforms aimed at strengthening governance in the financial sector and transforming the stock market into a primary source of capital formation.

Finance Minister Amir Khasru Mahmud Chowdhury made the announcement on Friday during a statement under Rule 300 on the 13th day of the first session of the 13th National Parliament. The session was presided over by Speaker Hafiz Uddin Ahmed.

In his address, the minister highlighted ongoing efforts to reform the legal framework of Bangladesh Bank to ensure better governance in the financial sector. He also noted that steps are being taken to improve the management and efficiency of commercial banks.

Emphasizing prudent fiscal management, he said the government is focusing on efficient loan management and exploring alternative sources of deficit financing. Initiatives are underway to develop both domestic and foreign bond markets.

The minister outlined plans to increase funding for development projects from revenue sources, reduce reliance on loans, boost GDP growth, and gradually lower the debt-to-GDP ratio.

He also presented several key policy priorities:

Inflation Control: Bringing inflation down to 5–6 percent to ease the cost of living.

Revenue Reform: Expanding the tax net, modernizing tax administration, and increasing automation to reduce dependency on borrowing, with a target of achieving a 15 percent revenue-to-GDP ratio.

Repatriation of Illicit Funds: Engaging with international organizations to recover laundered money.

Investment-Friendly Environment: Supporting SMEs to drive real GDP growth, promote entrepreneurship, and create employment through easier access to credit and business-friendly policies.

Social Protection: Increasing spending in education and healthcare, along with expanding social safety net programs.

A central focus of the announcement was the government’s plan to shift reliance away from the banking sector and position the stock market as the main engine for capital formation.

To support this transition, the minister said the Bangladesh Securities and Exchange Commission will be granted greater independence. He also pledged stricter actions against market manipulation and revealed plans to establish a special investigation commission to ensure transparency and accountability in the capital market.

The proposed reforms are expected to significantly reshape the country’s financial landscape and improve investor confidence in the stock market.