M. Nurul Islam, also known as Mohammad Nurul Islam, was born in 1924 in Barisal, British India (now Bangladesh). His early life was marked by financial struggles, but his resilience and dedication to education shaped his remarkable career in public service. He completed his graduation from Barisal BM College in 1946. He aspired to pursue higher education at Presidency College in Calcutta, but financial constraints prevented him from realizing this goal.
To support himself, Mr. Islam took a minor job in the Accountant General’s Office and supplemented his income by giving evening tuitions. He also worked as a guest tutor for the children of the Caretaker of the Government House in Darjeeling. Due to health issues, he left Calcutta and returned to Barisal on the eve of the partition in 1947. He then took up a teaching position at Barisal Zilla School.
Despite his ambition to pursue a Master’s degree in Economics at Dhaka University, his selection for the prestigious Civil Service of Pakistan (CSP) in 1950 altered the course of his academic and professional life.
Table of Contents
Entry into Public Service
Mr. Islam’s career in public service began in 1950 when he joined the Civil Service of Pakistan. His career trajectory was marked by integrity, competence, and strategic leadership.
Key Government Positions:
- In 1967, Mr. Islam was appointed Secretary to the Department of Commerce and Industry in the Government of East Pakistan.
- Before the independence of Bangladesh in December 1971, he was transferred to East Pakistan from West Pakistan and appointed Additional Chief Secretary. He played a critical role in stabilizing the post-liberation government during the early years of Bangladesh’s independence.
Post-Liberation Contributions
Following the liberation of Bangladesh in 1971, Mr. Islam became a trusted figure in the newly formed government.
Chairman of Trading Corporation of Bangladesh (TCB)
In 1972, Prime Minister Sheikh Mujibur Rahman appointed Mr. Islam as the Chairman of the Trading Corporation of Bangladesh (TCB). Under his leadership, TCB played a vital role in regulating the country’s trade sector during the post-war recovery period.
Chairman of National Board of Revenue (NBR)
In addition to his role at TCB, Mr. Islam also served as the Chairman of the National Board of Revenue (NBR), where he implemented progressive policies to strengthen the country’s tax and revenue systems.
Secretary to the Ministry of Commerce and President’s Office
Mr. Islam held key administrative roles as the Secretary to the Ministry of Commerce and later as the Secretary to the President’s Office, where he influenced major policy decisions during Bangladesh’s formative years.
Role as Controller of Imports & Exports
Mr. Islam’s tenure as the Controller of Imports & Exports in Chittagong was particularly impactful. He supported the Bengali business community by issuing liberal import licenses, balancing the needs of both the local Bengali businesses and the West Pakistani business community without creating political friction.
Appointment as the Governor of Bangladesh Bank
Mr. Islam was appointed as the 3rd Governor of Bangladesh Bank on July 13, 1976. He served with distinction until April 12, 1987 — a tenure spanning nearly 11 years, making him one of the longest-serving governors in the history of Bangladesh Bank.
Pioneering Affordable Housing Finance
One of Mr. Islam’s most influential contributions as Governor was the introduction of an ambitious housing finance program in 1976.
- Bangladesh Bank offered to finance 90% of the cost for small flats up to 1500 square feet in multistoried buildings.
- The interest rate was set at an affordable 5% with a generous repayment period of 30 years.
- The National Board of Revenue (NBR) was also encouraged to provide a five-year tax exemption on income generated from flats measuring up to 2000 square feet.
This strategic initiative addressed the growing demand for affordable housing, particularly among the middle class in urban areas like Dhaka, and laid the foundation for a more structured real estate market in Bangladesh.
Financial Reforms and Economic Stability
Under Mr. Islam’s leadership, Bangladesh Bank introduced several reforms aimed at strengthening the country’s financial system:
- Strengthened the banking sector’s regulatory framework.
- Introduced strategic monetary policies to stabilize inflation and exchange rates.
- Enhanced the role of the central bank in supporting the industrial sector and foreign trade.
Declining Political Appointments
Mr. Islam’s integrity and dedication to his principles were evident in his decision to decline political roles.
- In 1982, following the imposition of martial law, he was offered the position of Advisor/Minister in charge of Finance — which he respectfully declined.
- In 1991, Justice Shahabuddin Ahmed offered him the same role during the interim government, which he once again declined, preferring to remain independent of political influence.
Legacy and Influence
Mr. Islam’s impact extended beyond the financial sector. He was the only civil servant to voluntarily express interest in transitioning to the judiciary, but the government was reluctant to lose him in an administrative capacity.
His legacy is further reflected in his family’s continued contribution to Bangladesh’s public service. His younger brother, Md. Matiul Islam, served as the first finance secretary of Bangladesh in 1972, reinforcing the family’s deep ties to the country’s economic and political development.
Personal Life
Mr. Islam was married and had two sons and a daughter. Despite his professional achievements, he remained grounded and devoted to his family.
Later Life and Passing
M. Nurul Islam passed away on December 22, 2007, at the age of 83. His life and career remain a model of public service, integrity, and strategic leadership.
Conclusion
M. Nurul Islam’s legacy as the Governor of Bangladesh Bank and a distinguished public servant reflects his profound influence on Bangladesh’s financial and administrative landscape. His pioneering housing finance program, commitment to economic stability, and unwavering integrity left a lasting impact on the nation’s development. His story serves as an enduring testament to the power of dedication, resilience, and visionary leadership.