Government Moves to Privatise Nagad

The interim government has declared plans to privatise Nagad, which is run by the state- MFS provider. Ahsan H Mansur Governor of Bangladesh Bank transpired the decision during the “Cashless Bangladesh Summit 2025,” held at Sonargaon Hotel in Dhaka . In a pivotal policy shift aimed at fostering innovation and competition in Bangladesh’s mobile financial services (MFS) sector.

Accosting the summit as the chief guest, Governor Mansur addressed that a formal advertisement will be issued next week to invite potential investors for Nagad. He Stated that the move comes as part of the government’s broader strategy to bring in technological expertise, stimulate market competition, and attract foreign and local investment into the fast-growing MFS industry.

Emphasizing the need for change, the governor noted that Nagad would be separated from the Bangladesh Post Office, it currently manages the platform but lacks the capacity to operate such advanced financial services.
The governor also raised concerns about the increasing reliance on cash in the economy. He revealed that the cost of printing banknotes has been rising by nearly 10% annually, amounting to an additional Tk 2,000 crore each year a trend that challenges the country’s vision of becoming a digital economy.

The summit, jointly organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and Mastercard, brought together policymakers, banking leaders, fintech innovators, and regulators to explore strategies for developing a cashless ecosystem.

In a keynote presentation, Bangladesh Policy Exchange Chairman and CEO Masrur Riaz stressed the importance of learning from the digital transformations of countries such as China, India, and Sweden. He urged regulators to facilitate wholesale and corporate digital transactions, encourage fintech innovation, and invest in infrastructure to accelerate Bangladesh’s transition toward a fully digital financial system.