Interim government finance adviser Salehuddin Ahmed has proposed channeling the pension fund of government employees into the capital market to ensure more productive use of the fund. He made this important recommendation on Monday at a seminar held at the Dhaka Stock Exchange (DSE) Tower, jointly organized by the Bangladesh Securities and Exchange Commission (BSEC) and the DSE.

In his remarks, the adviser emphasized the need for risk-sharing in financing large-scale development projects. “Investments in bonds and equities can play a vital role in long-term financing,” he said, noting that Bangladesh’s economy remains overly reliant on bank loans.

To diversify funding sources and reduce pressure on the banking sector, Salehuddin proposed involving the pension fund in the stock market. However, he acknowledged the sensitive nature and risks associated with this proposal.

“This is not a private fund; it is a government fund, and the government must take full responsibility for its management and any associated outcomes,” he cautioned. He further stressed that any project or asset where the fund is invested must be properly securitized.

“If the investment fails and the funds are lost, simply apologizing to retired employees won’t be enough,” he warned. Therefore, he called for utmost caution and transparency in managing and investing the pension fund.

The proposal sparked interest among market participants and policymakers, opening up a broader debate on how to reform public finance and long-term investment strategies in Bangladesh.