Govt tightens oversight of public assets to curb long-term fiscal risks

The government has introduced a new Property, Plant and Equipment (PPE) and Lease Manual aimed at strengthening asset governance and curbing long-term liabilities.

The move comes as the Finance Division revealed that Bangladesh’s total contingent liabilities have reached Tk 6.398 trillion (Tk 6,39,782.58 crore), much of it linked to state-owned enterprises (SOEs) and poorly monitored asset and lease arrangements that pose serious risks to macroeconomic stability.

Senior government officials disclosed the information at a two-day workshop titled “SOEs and ABs Governance: Progress Review and Way Forward”, held on January 16–17 at a hotel in Cox’s Bazar.

The event was organised by the Scheme on SOE Governance under the Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS), Finance Division (FD).

Md. Hasanul Matin, Additional Secretary (Budget and Macroeconomics), FD, attended the workshop as the chief guest, while Dr Ziaul Abedin, Additional Secretary (Budget) and National Program Director of SPFMS, joined as the guest of honour. Rahima Begum, Director General (Additional Secretary), Monitoring Cell, FD, chaired the session. Around 80 officials from the Finance Division and various ministries and autonomous bodies participated.

Addressing the inaugural session, Md. Hasanul Matin said, “Inefficient performance of several SOEs has significantly increased contingent liabilities. The creation of multiple authorities for similar purposes has led to overlapping functions, which must be avoided,” he said, adding, “Bangladesh needs to restore its governance approach with global best practices”.

“Our major challenges today include rising debt burdens and declining revenue generation. Addressing these issues requires a whole-of-government approach,” he noted.

Dr. Ziaul Abedin said, “In a market economy, only commercially viable SOEs should continue to operate, while others should be restructured or phased out. But this has not happened in Bangladesh. Transforming SOEs requires strong political commitment”, he said adding, “We must rethink their future through broader, sustainable business models.”

Rahima Begum emphasised that SOEs and autonomous bodies play a crucial role in strengthening the national economy, but inefficiency, weak financial management, and lack of accountability have sharply increased debt and contingent liabilities. “We are identifying key challenges and focusing on practical solutions, including stronger audits, digital systems, and improved oversight to ensure good governance,” she said.

Four business sessions were held in the workshop.