TDS Desk:

Salman F Rahman, the co-founder of the Beximco Group, has been in prison for 18 months. Once a private sector adviser to ousted Prime Minister Sheikh Hasina, the businessman oversaw an empire of more than 200 companies. Loans taken by those now-dormant companies exceed BDT 800 billion, borrowed from dozens of banks and financial institutions. That vast debt has now become non-performing, and thousands of workers are left without jobs. Amid this corporate collapse, Beximco Pharmaceuticals stands out as an exception. Defying its owner’s fall, the publicly listed pharmaceuticals firm has increased both revenue and profit while cutting its bank borrowings. This contrast is confirmed by financial statements and sources.

Scrutiny of its unaudited reports highlights a marked difference. In the six months from July to December 2023, while Sheikh Hasina remained in power, the company’s medicine sales revenue reached BDT 22.06 billion. After the student-led uprising that toppled her government in August 2024, revenue for the equivalent period rose to BDT 24.01 billion. Gross profit followed suit, increasing from BDT 9.79 billion to BDT 10.98 billion. Driving this growth, net profit climbed from BDT 3 billion to BDT 3.53 billion across the same two windows.

Since Rahman’s imprisonment, the pharmaceutical firm’s retained earnings have grown from BDT 32.23 billion to BDT 36.8 billion. Its bank loan has shrunk: outstanding debt fell from BDT 7.6 billion in December 2023 to BDT 6.19 billion a year later.

Beximco Pharmaceuticals has not released any financial statements since December 2024. Company officials blame the delay to a drawn-out legal dispute. Early in 2025, the Bangladesh Securities and Exchange Commission appointed nine independent directors to Beximco Pharma. The company challenged the decision in the High Court, and with the case still unresolved, the board is unable to convene. This deadlock has delayed three separate reports: the unaudited third-quarter (January-March) statement for the 2024-25 financial year, the annual audited accounts, and the unaudited first-quarter (July-September) report for 2025-26. The failure to publish the audited 2024-25 financial statements led the London Stock Exchange to suspend trading in Beximco Pharma shares temporarily on January 2.

Officials insist, however, that underlying operations remain strong. They point to rising retained earnings and falling debt as direct outcomes of strong commercial performance.

Mohammad Ali Nawaz, chief financial officer of Beximco Pharmaceuticals, told journalists that the firm regards rigorous corporate governance as essential. “Beximco Pharmaceutical is listed on the domestic capital market as well as the London Stock Exchange,” he said. “That requires strict compliance, stripping the board of any ability to meddle in daily operations. Professional executives are in full control, so business continues as usual.” He acknowledged Bangladesh Bank and Janata Bank for key support in sustaining this steady course.

Founded in 1976, the country’s pharmaceuticals pioneer first imported medicines from Germany’s Boehringer and the United States’ Upjohn. It began local production under licence in 1980. Its portfolio now exceeds 300 products, exported to more than 60 countries including the U.S., Canada, Australia and nations across Europe.

Despite Salman F Rahman’s absence, the company made significant strides in research and manufacturing in 2025, including plans for a generic version of a high-cost drug for a rare disease. Beximco Pharma unveiled ‘Triko’, its generic treatment for cystic fibrosis. Developed to provide affordable care in developing and least-developed countries, full commercial production is slated for the first half of 2026. Preparatory manufacturing, regulatory work and international outreach had begun in 2025. The firm also launched new drugs for heart disease and gastrointestinal conditions that same year. Moreover, the company’s corporate governance standards won it a Silver category ICMAB Best Corporate Award — a mark of proficient management entirely lacking in Rahman’s other ventures.

Beximco Pharmaceuticals PLC was listed on the country’s stock exchange in 1986. The company also trades on the London Stock Exchange’s Alternative Investment Market. Investors on the LSE hold 22.42 percent of its shares, with the remaining 77.58 percent traded on the domestic market.

Salman F Rahman and his brother, ASF Rahman, are the founding duo behind Beximco Pharmaceuticals. Industry analysts note that robust corporate governance endured only at Beximco Pharmaceuticals among Rahman’s businesses. The company adhered to established protocols for expansion, accounting and borrowing. Its foreign listing served as a critical restraint, preventing Rahman from exerting undue influence on its board or management. His imprisonment has therefore left the pharmaceuticals business untouched; its market standing has, in fact, strengthened.

Corporate governance forms the essential foundation for any institution’s success, a principle that holds true in both advanced economies and Bangladesh. Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), emphasised this point. “Here, governance fundamentally means proper adherence to rules and compliance that is both internal and external,” she told journalists. “External compliance involves operating strictly within a country’s prevailing business rules. On the other hand, internal governance refers to an organisation’s own bylaws, shaped by national and international standards. These encompass policies on business conduct, profit, human resources and financial audit regulations.” A robust framework, she added, requires both internal and external audit systems.

She asserted that long-term sustainability demands competent and accountable top management. “Every department, advisory board, or trustee board must ensure complete transparency and accountability. Only then can an institution run effectively, increasing its efficiency. Even in comparably less developed countries, a firm that follows sound corporate governance will stand out from peers, weathering adverse conditions and delivering strong results,” she added.

Only three Beximco Group companies trade on the domestic capital market: Beximco Pharmaceuticals Limited, Bangladesh Export Import Company Limited, and Shinepukur Ceramics Limited. Of this trio, Beximco Pharmaceuticals is well ahead in terms of business and financial performance. Sector analysts directly attribute the company’s resilience during challenging times to its consistent good governance and professional executive management.

Dr Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries, stressed that corporate governance is the most critical factor for surviving adversity. Speaking to journalists, he said, “Although Beximco Pharmaceuticals ranks third in Bangladesh by sales, in corporate governance it’s number one. Secondly, Beximco plays a major role in developing human resources for the entire pharma sector. Its defining characteristic is professional management distinct from owner control. The company has faced no operational problems in its top owners’ absence, because its internal structure already had experienced professionals prepared to manage every wing. Beximco has been a pioneer in cultivating a skilled workforce for the nation’s pharmaceutical sector.”

Dr Hossain pointed out that a significant portion of senior executives at other drug firms are personnel developed within Beximco. He added, “In Bangladesh, only a handful of companies like Beximco, ACI and SKF rely on professionals. Most others are run directly by their owners. Succession planning is generally poor in Bangladesh, but here Beximco serves as a positive example. This system allows them to survive difficult times. Their reliance on professionals and a management structure free from direct owner interference is precisely why Beximco has maintained stability.”

Arrested at Dhaka’s Sadarghat on August 13, 2024, just days after Sheikh Hasina’s ouster, Salman F Rahman has remained imprisoned ever since. Authorities have since shown him arrested in numerous cases including killings during the student-led mass protests. He also faces trial at the International Crimes Tribunal. For 18 months, the Anti-Corruption Commission has repeatedly charged him in multiple of cases it has filed.

After the 2024 uprising, the staggering scale of funds plundered from the banking sector came to light. A Bangladesh Bank report submitted to the High Court in December 2024 revealed that Beximco Group companies had borrowed over BDT 500.98 billion from at least 16 banks and seven financial institutions. The state-owned Janata Bank alone provided nearly BDT 250 billion. By November 30 that year, loans worth BDT 310 billion linked to Rahman had been classified as non-performing. The report was submitted to the court by Barrister Moniruzzaman, acting as counsel for the central bank.

Addressing the media at the time, Muniruzzaman stated, “A total of 188 Beximco Group companies borrowed over BDT 500 billion from various banks and financial institutions, including Janata, Sonali, Agrani, Rupali, IFIC, National, and AB Bank. In securing most of these loans, relevant laws, rules, practices, and Bangladesh Bank policies were violated.”

Following the report’s submission, 2025 saw forensic audits at about a dozen banks including IFIC Bank where Rahman served as chairman. These audits, alongside special central bank inspections, uncovered at least another BDT 300 billion in loans issued to various shell companies he owned. IFIC Bank’s share of this anonymous lending exceeded BDT 80 billion.

A senior Bangladesh Bank official, speaking anonymously, confirmed Rahman controls a sprawling network of more than 200 companies, held both directly and through an array of nominee accounts and shell entities. The total borrowing extracted in these entities’ names reaches approximately BDT 800 billion. Among all these companies, only Beximco Pharmaceuticals now maintains a regular loan account; every other is irregular.