DHAKA, Aug 22, 2026 (BSS) - Finance and Planning Minister Amir Khosru Mahmud Chowdhury today said a US$2 billion Bangladesh-dedicated fund will be launched in Hong Kong as equity investment, not a loan, as part of the government's efforts to develop alternative sources of financing, revive the capital market and reduce dependence on conventional borrowing.

"We are going to have a dedicated fund for Bangladesh in Hong Kong. It will be a $2 billion Bangladesh-dedicated fund. This is equity and not a loan and we're going to float the Bangladesh dedicated fund in Hong Kong, Insha Allah," he said.

The finance minister was speaking at a seminar on "Biannual Economic State in FY2026: Fiscal & Monetary Perspective and Private Sector Expectations" as the chief guest, organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its auditorium in the capital today.

Khosru said the initiative would provide an alternative channel for mobilising international capital for Bangladesh at a time when the government is seeking to reduce pressure on domestic financing sources.

He said Bangladesh has been exploring alternative financing because the country's capital market had remained weak for a considerable period and private-sector access to financing needed to be strengthened.

"As there was virtually no functioning capital market in Bangladesh for quite some time, we are trying to revive it as one of the alternative sources of financing," he said.

The finance minister said significant changes have already been made in the capital market regulatory framework, particularly through the appointment of a new leadership at the Bangladesh Securities and Exchange Commission (BSEC).

He said a chairman and four commissioners have been appointed to the BSEC through a transparent selection process.

Khosru said the government is already seeing the results of the changes, as the capital market is gradually recovering and investors' confidence is returning.

"I won't say that the capital market has recovered completely, but confidence is coming back. The market is gaining ground and moving upward," he said.

He stressed that restoring confidence among investors alone would not be enough. Companies that seek to raise capital through stock market listings must also have confidence in the market.

"Good companies will come for listing only when they have confidence in the market," he said.

The minister criticised the previous situation in the capital market, saying it had effectively turned into a "casino" where ordinary investors could lose while a section of market players benefited.

"The capital market had become like a casino. At the end of the day, when you play in a casino, the casino owner makes the profit," he said.

He said the government is now trying to change that culture by ensuring transparency, professionalism and stronger institutional governance.

Khosru said the government's reforms are also attracting the attention of international fund managers.

"We are seeing global fund managers coming forward. That is very good," he said.

He said the proposed US$2 billion Hong Kong fund is one of the initiatives being pursued to channel international equity capital into Bangladesh.

The fund, he clarified, would not create a debt obligation for the government or the country as it would be equity rather than a loan.

The finance minister said the government is also considering several other instruments to diversify Bangladesh's sources of foreign financing.

"We want to go for dollar bonds. We will go for panda bonds and samurai bonds," he said.

According to him, such instruments would allow Bangladesh to tap different international capital markets instead of relying excessively on domestic banks or other traditional sources of financing.

The finance minister said the government is particularly focused on reducing its dependence on domestic financing so that private businesses can obtain more credit and investment resources.

He said Bangladesh needs to move away from excessive dependence on the private sector and domestic financial institutions for government financing.

"We are trying to reduce borrowing from the private sector through alternative financing," he said.

Khosru said the government has already taken steps to reduce bank borrowing to some extent, although the process of shifting towards alternative financing would take time.

"We have already brought down bank borrowing somewhat. But, the process will take time. We are moving in that direction," he said.

He said the government would continue pursuing alternative financing mechanisms to create greater space for private-sector investment.

The finance minister also said the government's objective is not to increase the tax burden on existing taxpayers but to expand the country's tax network.

"When we talk about increasing taxes, we are not talking about increasing taxes on those who are already paying. We are trying to expand the network," he said.

He said a broader tax base is essential for increasing government revenue in a sustainable manner.

Khosru also stressed the importance of automation in tax administration.

He said reducing physical contact between taxpayers and tax officials would improve transparency and reduce opportunities for corruption.

He said the combination of a revitalised capital market, international equity funds, diversified bond financing and a broader tax base would help Bangladesh build a more sustainable financing structure and support private-sector-led economic growth.