State-owned enterprises are set to lose around Tk 28,000 crore this year as against Tk 6,000 crore over the last year.
As per Finance Division estimate, total income of 49 state-owned enterprises in textiles, jute, steel, agriculture, fisheries, transport, energy, power supply has been estimated in the budget at Tk 4, 01, 689 crore.
The expenditures of these enterprises on the other hand has been estimated at Tk 4, 29, 736 crore. It shows during the current fiscal, state-owned enterprises are set to lose over Tk 28, 047 crore.
According to sources, these state-owned enterprises had set the target of earning Tk 3, 69, 800 crore in FY 2023-24. The revised expenditure target was set at Tk 3, 75, 790 crore.
State-owned enterprises' losses in the just concluded financial year was estimated at Tk 5, 989 crore. And the losses will increase by more than 5 times in this financial year.
Recently, Industry Minister Nurul Majid Mahmud Humayun told parliament that 28 government-owned industries are running at a loss.
They include - four enterprises of Bangladesh Steel and Engineering Corporation (BSEC), 15 of Bangladesh Sugar and Food Industries Corporation (BSFIC) and 9 of Bangladesh Chemical Industries Corporation (BCIC).
Humayun told parliament that Atlas Bangladesh Limited, Tongi, Gazipur, Bangladesh Blade Factory Limited and National Tubes Limited and Eastern Tubes Limited, under BSEC are running at losses.
Out of 16 enterprises of BSFIC, 15 are incurring losses, said the minister. The losing enterprises of BCIC include- Shahjalal Fertilizer Company Limited (SFCL), Ashuganj Fertilizer and Chemical Company Limited (AFCCL), Jamuna Fertilizer Company Limited (JFCL), Chittagong Urea Fertilizer Limited (CUFL), Ghorashal Palash Fertilizer PLC (GPFPLC).
These also include Chhatak Cement Company Limited (CCCL), Karnaphuli Paper Mills Limited (KPML), Bangladesh Insulator and Sanitaryware Factory Limited (BISFL) and Osmania Glasssheet Factory Limited (UGSFL).
Economists said they didn't understand when private sector companies are making profit why state-owned enterprises were incurring losses for years though both are in similar businesses. In recent years, the losses of some state owned enterprises increased at abnormal rate.
Economists blamed unbridled corruption, bad management, absence of proper policies and indifference of the authorities as well as inefficiency for the losses.
Dr Qazi Kholikuzzaman Ahmad said state owned enterprises incurred losses for years. He called for review of government policies and change in management and public ownership of these enterprises.
It's high time the government took action to improve the performance of state owned enterprises, he said.
Sources in the monitoring cell at Finance Division said, unproductive loans of state-owned enterprises in Bangladesh are headache of the government and particularly the state-owned commercial banks.
