Govt Seeks Private Investment to Revive Closed State-Owned Factories

"The government is moving to transform idle state-owned industrial assets into productive, employment-generating ventures by attracting private investment to closed factories," said Commerce, Industries, and Textiles and Jute Adviser Khandaker Abdul Muktadir.

He made the remarks at a signing ceremony at the Secretariat, where an agreement was signed to lease an additional 14.80 acres of land at Bangladesh Jute Mills Ltd's Narsingdi Unit to Jute Alliance Ltd. The adviser said dormant state-owned assets become liabilities if left unused for long periods.

He said the new investment is expected to bring in around Tk 10.5 billion, generate annual production worth nearly Tk 30 billion, and create about 3,000 new jobs. The planned soybean seed crushing project will also strengthen the country's edible oil production and food security, he added.

The adviser said the government is encouraging capable private-sector investors instead of directly operating industrial enterprises. Closed state-owned factories are being revived through long-term leases, revenue-sharing arrangements, and other public-private partnership (PPP) models. He expressed hope that production would resume at most closed factories within the next two years.

Responding to a question on exports, he said global conflicts, weaker demand in European markets, and new tariff policies have affected consumer spending worldwide. However, Bangladesh's garment sector is gradually shifting towards higher-value man-made fibre and value-added products, which will help boost export earnings.

State Minister for Textiles and Jute Md Shariful Alam said 14 of the 20 selected closed jute mills have already been leased out, with production resuming at nine of them. These mills have created around 9,500 jobs and are producing nearly 160 tonnes of jute products daily.

Cabinet Secretary Nasimul Ghani and Textiles and Jute Secretary Sharaf Uddin Ahmed Chowdhury attended the event.