The future structure and ownership of mobile financial services provider Nagad will depend on the policy stance of the newly formed government, Barrister Mir Ahmad bin Kashem Arman said on Tuesday, indicating that any fresh investment process will begin only after a clear decision is taken.
Arman made the remarks after a meeting with Bangladesh Bank Governor Ahsan H Mansur at the central bank headquarters.
According to Arman, the governor informed him that no final policy decision has yet been made regarding Nagad following the change in government. “If the government decides – like the interim administration – to hand over Nagad to private investors, then the next phase of the investment process will begin,” he said.
Foreign investment interest
Arman said discussions on bringing foreign investment into Nagad had been ongoing since the interim government period, and his meeting with the governor was part of that process.
He clarified that he is acting as a professional lawyer and local representative of a foreign organisation interested in Bangladesh’s digital financial sector.
“I am not here in any political capacity. I am a professional lawyer providing legal assistance to potential investors,” he said, adding that he has previously worked with international firms such as Dell, Microsoft, Apple and Uber.
He noted that potential investors are keen on Bangladesh’s expanding digital banking landscape and have been exploring entry opportunities since last year.
The governor has also been informed about proposals to conduct a forensic audit to assess Nagad’s financial viability before any investment decision is made.
Background of ownership disputes
Nagad, which began operations on March 26, 2019, under the Postal Department, later received a digital bank licence. During the previous Awami League administration, the company faced allegations of regulatory benefits and financial irregularities.
Following the political transition after the student–public movement, Bangladesh Bank dissolved Nagad’s board on August 21, 2024 and appointed an administrator.
However, the High Court later declared that decision illegal, leading the Department of Posts to reassume control.
In February last year, Bangladesh Bank filed a case against 24 individuals, including Nagad’s former chairman, Syed Mohammad Kamal, and managing director, Tanvir Ahmed Mishuk, over alleged embezzlement. An inspection conducted between April 21 and 25, 2024, reportedly found a deficit of over Tk 101 crore in real money against issued e-money, along with additional irregularities amounting to Tk 645 crore.
Despite the controversies, Governor Mansur recently stated at a public event that Nagad is now stable and moving toward growth, while efforts are underway to correct past irregularities. He emphasised that bringing in a strong technology-sector company as a major shareholder would be essential to making Nagad competitive.
Policy decision awaited
Arman reiterated that the current government appears committed to attracting foreign investment to revive the fragile economy. He also confirmed that, days before the parliamentary elections, he had written to the governor conveying foreign investors’ interest in Nagad and requesting access to a forensic audit report.
For now, however, the future of Nagad’s ownership and operational structure remains contingent on a formal policy decision from the government.