Dhaka, April 22 -- The answer is undoubtedly yes. A sovereign wealth fund (SWF) is a state-owned investment vehicle designed to manage national assets strategically for long-term wealth creation and intergenerational equity. In many ways, SWFs function is similar to how households or families approach long-term investments in housing, stocks, or other financial assets seeking to build wealth over time through strategic asset allocation rather than focusing solely on immediate liquidity.

One might ask why do we need a SWF when we have foreign exchange reserves in the central bank? This is where the function of a SWF becomes clear. Usually the foreign exchange reserves are invested in low-risk, low-yield liquid bonds, so that they can be s...