MP Arman meets BB governor over foreign investors

Dhaka-14 Member of Parliament Barrister Mir Ahmad Bin Quasem Arman of Bangladesh Jamaat-e-Islami met Ahsan H Mansur, governor of Bangladesh Bank (BB), to discuss the possibility of arranging foreign investment for mobile financial service provider Nagad.

Speaking to journalists after the meeting at the central bank headquarters on Tuesday, Arman said he attended in his professional capacity as a lawyer, representing foreign investors interested in Bangladesh’s digital banking sector.

He said the interim government had earlier decided to allow private-sector investment in Nagad. Since then, he has been working on behalf of his clients and communicating with different levels of the government. In a letter dated 8 February addressed to the BB governor, Arman sought permission to conduct an audit of Nagad on behalf of foreign investors to assess the company’s financial condition and potential profitability. 

According to him, the governor informed Tuesday’s meeting that since a new government has taken office, it will decide whether Nagad will be handed over to private ownership.  Until a policy decision is made, Bangladesh Bank will not take any decision regarding the company.

Arman said the foreign institution he is coordinating for, along with five other entities, is interested in investing in Nagad. 

The governor reportedly indicated that if the new government allows fresh private-sector investment, all interested investors will be given an opportunity. On the status of the investment process, Arman said discussions remain at a preliminary stage. The investors will proceed only if their assessment finds the investment commercially viable.

 

If they determine that applying for a new licence would be more beneficial than investing in Nagad, they may pursue that option instead. They are also exploring opportunities in digital banking and other sectors.

He emphasised that he is not personally investing in Nagad. “I am only coordinating on behalf of multinational investment firms and foreign investors. I have no income beyond what I declared in my affidavit. I practise law to support my family, and this coordination is part of my professional responsibility,” he said.

Responding to a question about potential conflict of interest in acting on behalf of a multinational firm while serving as a Member of Parliament, Arman said there is no conflict. 

“We do politics to serve the people; we do not take anything in return. It is common in our country for Members of Parliament to remain engaged in the legal profession,” he said.

Asked whether the change in government could affect investment prospects, he said he has not encountered any obstacles so far.  “The current government is sincere about attracting foreign investment. There is no alternative to restoring the country’s fragile economy. Every conscious citizen should assist, within their capacity, in bringing in foreign investment,” he added.

BB Executive Director and spokesperson Arief Hossain Khan said Nagad had previously faced a major crisis. 

Considering its large customer base, Bangladesh Bank appointed an administrator and an administrative team to oversee operations. “However, this is not a permanent solution. To place Nagad on a sustainable footing, substantial investment is required. Whether the investment comes from local or foreign sources would be acceptable,” he said.

He noted that an earlier initiative to invite foreign investment in Nagad through an international tender had the central bank’s approval, but the process did not reach a final stage during the interim government’s tenure. 

Now that a new government has assumed office, Bangladesh Bank is awaiting guidance from the relevant ministry and will proceed in line with the government’s decision.

Arief said Nagad’s ownership involves the Bangladesh Post Office, meaning the final decision regarding its ownership structure rests with the government. Bangladesh Bank will provide advice and technical support as required.

He also confirmed that three to four applications expressing interest in investing in Nagad have already been received, and these will be evaluated collectively before a final decision is taken.