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DHAKA, July 12, 2026 (BSS) - Finance Minister Amir Khosru Mahmud Chowdhury today urged private universities to utilize the money saved from the government's tax waiver to improve the quality of education, strengthen research and innovation and enhance their international rankings.
He also stressed the importance of self-regulation by universities, saying institutional accountability is more effective than excessive government control.
The minister made the remarks as the chief guest at a discussion titled "The Role of Private Universities in Developing Skilled Human Resources, Research, Innovation and Economic Development in the Implementation of the National Budget 2026-27," organized by the Association of Private Universities of Bangladesh (APUB) at a city hotel.
Highlighting the rationale behind the government's decision to exempt private universities from the existing tax, Amir Khosru said education is a non-profit sector where profit-making should not be the primary objective.
"Despite inheriting a fragile economy, huge domestic liabilities and the challenge of nearly US$235 billion allegedly siphoned abroad during the previous regime, we have taken the policy decision to waive the tax imposed on private universities," he said.
"From next year, the five percent tax amount will remain with the universities. However, this financial benefit should be invested in improving educational standards, achieving international benchmarks and expanding research to enhance university rankings," he added.
The finance minister reaffirmed his party's commitment to private sector-led growth, saying the government sees itself as a facilitator rather than the sole driver of development, said a ministry press release.
"The government alone cannot do everything. Sustainable development requires partnerships with the private sector and non-governmental organizations," he said.
He also assured investors of policy predictability, noting that the budget has outlined policy directions for the next five years to enable businesses to undertake long-term planning with confidence.
Emphasizing the importance of expanding the country's economic base, the minister said the government aims to bring all sectors and marginalized communities currently outside the formal economy into the country's gross domestic product (GDP) by 2034.
He said GDP should not be confined to industrial production alone, adding that sectors such as theatre, music, fine arts and rural cottage industries possess significant economic potential and should be monetized to contribute to national output.
The finance minister also called for reducing dependence on foreign expertise in the ICT sector by giving greater priority to graduates of local private universities and domestic ICT companies.
He further encouraged private universities to become more actively engaged with the country's capital market.
Calling for maintaining high standards of governance and academic excellence, Amir Khosru said the government does not believe in imposing regulations through excessive legal enforcement.
"We want universities and their associations to ensure good governance through self-regulation," he said, adding that universities must play a leading role in addressing the country's moral and ethical challenges.
APUB Chairman Dr Md Sabur Khan presided over the programme, while University Grants Commission (UGC) Chairman Professor Mamun Ahmed attended as the special guest.
Chairmen of boards of trustees, vice-chancellors of different private universities, distinguished academics, representatives of the industrial sector and members of the media also attended the event.
In their remarks, Dr Sabur Khan and Professor Mamun Ahmed appreciated the government's timely and private sector-friendly approach toward higher education and research, expressing their commitment to working in partnership with the government to advance national development.
