Finance Minister Amir Khosru Mahmud Chowdhury on Sunday urged private universities to utilise the money saved from the government’s decision to exempt them from paying tax for improving the quality of education, expanding research and enhancing their international standing.

He also stressed that self regulation by universities is more important than excessive government control to ensure good governance and maintain academic standards.

The finance minister made the remarks while addressing a discussion organised by the Association of Private Universities of Bangladesh (APUB) at The Westin Dhaka on the role of private universities in implementing the national budget for FY2026-27 through skilled human resources, research, innovation and economic development.

Referring to the government’s decision to waive the existing five percent tax on private universities, Amir Khosru said education is a non profit sector where there is no scope for making profits.

He said the decision had been taken despite inheriting a fragile economy, a huge domestic liability burden and the alleged laundering of around US$235 billion during the previous administration.

“From next year, the five percent tax money will remain with your institutions. But that savings should be invested in improving educational standards, achieving international benchmarks and strengthening research to improve university rankings,” he said.

The finance minister also announced the government’s plan to bring all sectors and marginalised communities currently outside the mainstream economy within the country’s Gross Domestic Product (GDP) by 2034.

He said GDP should not be limited to industrial production alone, adding that sectors such as theatre, music, fine arts and rural cottage industries possess enormous economic potential.

According to him, the government plans to monetise these sectors by assigning economic value to their activities, thereby strengthening the national economy.

Highlighting the government’s economic philosophy, Amir Khosru said the BNP has always believed in private sector led growth.

“The government cannot do everything alone. Its role is to act as a facilitator,” he said, adding that sustainable national development requires partnerships with the private sector and non governmental organisations.

He also assured investors of policy predictability, saying the current budget has outlined measures for the next five years to enable businesses to make long term investment decisions with confidence.

The finance minister urged greater reliance on graduates from local private universities and domestic ICT companies to reduce dependence on foreign expertise in the information technology sector.

He also encouraged private universities to become more actively engaged with the country’s capital market.

Calling for improved governance in higher education institutions, Amir Khosru said the government does not believe in imposing regulations through excessive legal measures.

“We want universities and their associations to ensure good governance through self regulation,” he said.

He further urged universities to play a leading role in addressing moral decline in society.

The event was chaired by APUB Chairman Dr Md Sabur Khan.

Chairman of the University Grants Commission (UGC), Professor Mamun Ahmed, attended as the special guest.

Chairpersons of boards of trustees, vice chancellors, academics, representatives from industry and members of the media also participated.

In their remarks, Dr Sabur Khan and Professor Mamun Ahmed welcomed the government’s supportive approach towards private higher education and research and expressed their commitment to working in partnership with the government for national development.