Matiul Islam was a towering figure whose creative and visionary approach was instrumental in shaping the foundation and subsequent expansion of Bangladesh’s financial architecture. As the nation’s first finance secretary, he was critical in recovering the country’s war-torn economy, and later transitioned into a pioneering entrepreneur, driving the development of the modern private financial sector. His passing on November 20, 2025, at the age of 95, cast a shadow over Bangladesh’s financial community.
A devoted economist, administrator, writer, and entrepreneur, Mohammed Matiul Islam’s six decades of work in accounting, finance, and international development left an indelible legacy.
Table of Contents
The Foundation: Education and Early Career
Born on January 24, 1930, Matiul Islam grew up in British India and in 1946 went to Calcutta for higher studies. With the partition of India in 1947, he moved to Chittagong.
His career was built on an exceptional academic record. He achieved a B.Com with first-class first honors from the University of Dhaka (DU) and later earned a Master’s degree in Public Administration from Harvard University. He was also a fellow of the Institute of Chartered Accountants of Bangladesh (ICAB).
He came out successful in the central superior service examination. His distinguished career officially began with joining the Civil Service Academy in Lahore in 1952.
Mr. Islam is known for serving as the first Finance Secretary of Bangladesh, as well as being Bangladesh’s representative to the World Bank and later with the United Nations.
Rebuilding a Nation: Bangladesh’s First Finance Secretary
Following Bangladesh’s independence in 1971, Matiul Islam was called upon to take on the crucial and challenging role of the country’s first Finance Secretary, appointed by January 17, 1972. Working closely with Tajuddin Ahmad, the country’s first finance and planning minister, Islam was tasked with rebuilding the nation’s war-torn banking system.
His responsibilities were immense, including rebuilding a shattered financial system and implementing the nationalization of the banking sector.
During this foundational period, he traveled with Sheikh Mujib and other heads of government to establish key international relationships:
- In February 1972, he traveled to Calcutta for talks with Indira Gandhi and the Indian Foreign minister.
- In March 1972, he journeyed to Moscow where talks with Soviet Premier Brezhnev and Prime Minister Alexei Kosygin yielded an agreement for the Soviets to build a power plant in Ghorashal and assist in clearing mines and wreckage from Chittagong Harbour.
- Later that year, after visits to Washington D.C. and London, the groundwork for a relationship with the IMF and World Bank was established, and the country achieved US$400 million in foreign currency reserves by September 1972.
Global Influence: Diplomat and Development Expert
Matiul Islam’s impact extended far beyond Dhaka into the international financial arena, serving as a Bangladeshi diplomat and envoy to key global organizations.
The World Bank
In October 1973, Islam joined the World Bank. As Bangladesh’s representative, he spearheaded the country’s entry into the World Bank, International Monetary Fund (IMF), and Asian Development Bank (ADB).
He served as the Alternate Executive Director for Bangladesh, working in coordination with India and Sri Lanka. When S.R. Sen, the Executive Director, passed away, Islam took over his duties, managing Bangladesh’s contributions to the IBRD, IDA, and IFC.
His tenure, which lasted until July 1977, was marked by vocal campaigns for the equal treatment of even the poorest nations. Notably, he campaigned against a proposed U.S. Government Accountability Office audit of the World Bank, asserting that all members were equal, and if the U.S. audited the bank, every other country should have that opportunity. He collaborated closely with Robert McNamara, then President of the World Bank, to promote aid and assistance in debt restructuring, while simultaneously working to eliminate barriers to foreign investment to enhance Bangladesh’s appeal to investors.
Secretary of Industry and UNIDO
Following his tenure at the World Bank, Islam returned to the Government of Bangladesh in July 1977 as Secretary of Industry. His primary focus in this role was the development of Bangladesh’s private sector.
His most significant achievement as Industry Secretary was partnering with Dubai Bank, Limited to establish the Arab-Bangladesh Bank (now AB Bank) on December 31, 1981. He later served as the founding chairman of AB Bank Limited.
Seeking stability away from the central government following Ziaur Rahman’s assassination in 1981, Islam was offered a position at the United Nations Industrial Development Organization (UNIDO).
He spent twelve years at UNIDO, serving six years in Vienna and six years in Delhi.
- In Vienna, he was a Senior Industrial Development Field Adviser and served as a liaison between UNIDO and the World Bank, matching World Bank projects in need of consultant services with specialized UNIDO personnel.
- In 1987, he transferred to Delhi, working as the UNIDO director for India and Bhutan, where he helped secure foreign direct investment and led matchmaking efforts to pair investors with local companies at no cost to India and Bhutan.
Architect of the Private Financial Sector
After retiring from government/NGO service in 1993, Matiul Islam turned his focus fully to entrepreneurship, becoming a pioneering figure in developing the country’s private financial sector. He went on to start four companies.
He was instrumental in establishing several key non-bank financial institutions (NBFIs) in Bangladesh:
- In 1996, he founded International Leasing and Financial Services (ILLFS).
- In 1998, he followed this by founding National Housing Finance and Investment (NHFIL).
- In 2000, he founded his primary business venture, the Industrial and Infrastructure Development Finance Company Limited (IIDFC), a non-banking financial institution (NBFI) operating under the Financial Institutions Act of 1993. As of 2015, IIDFC amassed 16.7 billion BDT (US$200 million) in assets, and Islam continued to serve as its chairman.
Additionally, in 2003, he played a key role in founding the Credit Rating Agency of Bangladesh (CRAB) by partnering with the Indian Credit Rating Agency (ICRA), and he most recently served as the vice-chairman of CRAB.
In his later years, he documented his extensive experience, publishing his second memoir, “Recollections of a Civil Servant-Turned Banker (2019)“.
Lifetime Achievement and Recognition
Matiul Islam’s significant contributions to financial governance and public life were recognized with prestigious awards:
- In 2010, his company, IIDFC, received the HSBC-The Daily Star Climate Award for Climate Change Mitigation for financing Bangladesh’s first green brick project, which introduced a technology using 50% less energy to manufacture bricks.
- In 2011, he won The DHL-Daily Star Lifetime Achievement Award for his collective accomplishments over six decades in finance, accounting, and international development.
- In 2021, the Institute of Chartered Accountants of Bangladesh (ICAB) honored him with a Lifetime Achievement Award.
Death
Mr. Islam left the world at the age of 95 on 20 November 2025 leaving his wife- Zohra, two daughters, five grandchildren, and one great-granddaughter..
Last Lines
Matiul Islam, who was described by his family as possessing great wisdom and a quiet but powerful influence, passed away on November 20, 2025. His vision and dedication ensured that the financial ecosystem of Bangladesh was not just reconstructed but systematically designed for future growth, cementing his legacy as a true pioneer.