There are currently 232 autonomous, self-governing, and statutory government institutions in the country. As of June 2024, their total assets were estimated to be around BDT 12 trillion, with a workforce of approximately 150,000 people. Despite having substantial resources and manpower, these state-owned enterprises collectively failed to make a profit in FY 2023–24, incurring a net loss of BDT 59.90 billion. During the same period, the government provided BDT 507.83 billion in subsidies to these institutions. In addition, the government has had to bear a large portion of their outstanding debt liabilities. Although many of these institutions have long been plagued by irregularities, corruption, inefficiency, and mismanagement, the Interim Government has yet to take any coordinated initiative to reform them.
The current interim government has undertaken several structural state reform initiatives. Reforms are being implemented based on the recommendations of various commissions. However, state-owned enterprises are not included in the government’s reform agenda. Every year, the government spends a significant amount from the national treasury to keep these organizations afloat, many of which have become nearly defunct after years of sustained losses.
According to data from the Finance Division and the Economic Survey, as of June 2024, the total assets of state-owned enterprises exceeded BDT 11.92 trillion, with a total workforce of 149,240 individuals. In FY 2023–24, their total operating and non-operating expenditures amounted to over BDT 3.94 trillion, while total income reached BDT 4.69 trillion. Although the balance sheet shows a surplus of BDT 750.42 billion, the enterprises collectively reported a net loss of BDT 59.90 billion for the same fiscal year. During this time, the government provided subsidies totaling BDT 507.83 billion. As of June 2024, their total debt stood at BDT 4.62 trillion, including BDT 2.18 trillion in bad loans.
Many state-owned enterprises have been incurring losses year after year. Among them, Bangladesh Textile Mills Corporation (BTMC), Bangladesh Road Transport Corporation (BRTC), Bangladesh Film Development Corporation (BFDC), Bangladesh Sugar and Food Industries Corporation (BSFIC), and Bangladesh Jute Mills Corporation (BJMC) have all been operating at a loss for 17 consecutive years.
By the end of FY 2023–24, six industrial state-owned enterprises recorded a combined net loss of BDT 22.13 billion. Six service sector entities posted losses of BDT 54.05 billion, while three commercial institutions lost BDT 11.57 billion. In addition, 17 organizations in the service and other sectors incurred combined losses of BDT 33.21 billion.
Among the top loss-making enterprises in FY 2023–24, the Bangladesh Power Development Board (BPDB) recorded a loss of BDT 87.64 billion, Trading Corporation of Bangladesh (TCB) BDT 30.30 billion, Bangladesh Chemical Industries Corporation (BCIC) BDT 15.09 billion, Bangladesh Sugar and Food Industries Corporation (BSFIC) BDT 5.71 billion, and Bangladesh Jute Mills Corporation (BJMC) BDT 2.26 billion.
Regarding the situation of these state-owned enterprises, former Lead Economist of the World Bank’s Dhaka office, Dr. Zahid Hussain, told Bonik Barta, “If we look at the financial indicators of state-owned enterprises, it is evident that they are a massive burden on the government’s treasury. Even corporatization has failed to yield results. The current Interim Government has taken some initiatives to reform state-owned banks and institutions in the power and energy sectors. However, it’s undeniable that no comprehensive reform measures have been undertaken for state-owned enterprises as a whole. If the government could complete the reform initiatives it has already started, that would set an important precedent. It’s not possible to do everything at once. The government must prioritize which ones to address first. The performance of state-owned institutions in the financial, power, and energy sectors has the greatest impact on the economy. So, reforms should begin there and then expand to other sectors. As for the enterprises that have been incurring losses year after year, tough decisions will have to be made. The example of Adamjee Jute Mills is right before us. The interim government should complete some of the initiatives it has undertaken and set the stage for the rest. The next elected government will be in a stronger political position to carry out broader reforms and make difficult decisions.”
Several state-owned enterprises, despite having significant potential, have failed to become financially viable due to poor planning and lack of professionalism. In the telecommunications sector, while private mobile operators have succeeded in attracting customers and earning profits, the state-owned Teletalk Bangladesh Limited remains far behind. In 2020, the company’s market share based on the number of subscribers was 2.88 percent. As of June 2025, its share has increased slightly to 3.50 percent. The company incurred a loss of around BDT 1.80 billion back in FY 2023–24.
Similar to Teletalk, Biman Bangladesh Airlines — another state-owned company — has failed to make effective use of the government’s support. The airline has received extensive assistance from the government, ranging from infrastructure development and aircraft acquisition backed by sovereign guarantees to ground-handling privileges at domestic airports. Yet, in its 54 years of operation, Biman has not managed to join the ranks of well-performing airlines. Instead, the carrier has frequently faced criticism over mechanical failures, flight cancellations, schedule changes, comparatively higher fares than some top global airlines, and concerns regarding hygiene and food quality. Although it reported a profit of BDT 2.82 billion in FY 2023–24 from passenger and cargo transport and ground-handling services, Biman Bangladesh Airlines remains burdened with liabilities of nearly BDT 150 billion.
The government continues to keep loss-making state-owned enterprises afloat through annual budgetary subsidies. At the same time, it bears the cost of servicing the domestic and foreign debts these entities have accumulated. Some of these enterprises have ceased production altogether, yet their officials and employees continue to draw salaries and benefits. Large chunks of land and assets owned by these entities also remain idle, with no contribution to productive use.
Dr. Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD), told Bonik Barta, “There is no coordinated initiative to reform state-owned enterprises. Many of them are running at a loss. No attention has been paid to institutional structure, staffing, or efficiency, which is why their performance keeps deteriorating. Some of these institutions will have to be shut down. And those deemed essential must be reformed. Given the level of service they provide, the government’s spending on them is not cost-effective. It is a waste of public resources.”
Despite recurring losses and heavy subsidies from the state, many state-owned companies, agencies, and authorities continue to distribute various types of bonuses to employees, often in unethical ways. Analysts say the lack of transparency and accountability allows such practices to persist. They have called for forensic audits to accurately assess the true financial condition of these institutions.
The governance situation in state-owned enterprises remains in a fragile state. Many of these institutions have developed a common practice of preparing arbitrary financial reports without following accounting standards, failing to publish regular financial statements, and lacking necessary documents to verify the accuracy of data and figures presented in financial reports. Moreover, there are significant inconsistencies in official data and statistics regarding state-owned enterprises. In many cases, the information provided by the Finance Division contradicts the data published in the Economic Survey.
According to a report by the Finance Division’s Monitoring Cell, as of June 2023, the total debt of 101 state-owned enterprises stood at BDT 6.39 trillion. Data from the Economic Survey indicate that as of June 2024, the amount had declined to BDT 4.62 trillion. The Economic Survey also reported that the Bangladesh Rural Electrification Board (BREB) incurred a loss of BDT 44.99 billion in FY 2023–24, while the agency’s audit report shows that it actually made a profit of BDT 14.51 billion.
The absence of a unified legal framework has made oversight of state-owned enterprises complicated. Each institution operates under separate laws and falls under different ministries or divisions, resulting in bureaucratic hurdles in supervision. Ownership policies have also created complications. Although the Finance Division allocates funds to these entities through the national budget, it does not have exclusive ownership over them, which often makes oversight difficult. In some instances, employees of these enterprises have taken unethical benefits in violation of the Finance Division’s directives. As part of its budget support conditions, the Asian Development Bank (ADB) has stipulated that by 2026, all state-owned enterprises must come under the ownership of the Finance Division.
Many state-owned enterprises are currently at risk due to their fragile financial conditions, according to the Finance Division’s own assessment. The Monitoring Cell of the Finance Division evaluated the financial risk status of 101 state-owned enterprises and organizations. It found that 79 of them face moderate to very high financial risk. Among these, 14 are at very high risk, 28 at high risk, and 37 at moderate risk.
According to officials concerned, the privatization of several state-owned enterprises through the former Privatization Commission did not yield the expected results in the past. Many of these enterprises have now become a burden for the government. Each year, the Finance Division has to provide large subsidies to keep them running. On the other hand, issues related to workers and their involvement in labor politics make it difficult to shut these entities down abruptly.
There is no longer any prospect for the country’s sugar mills, given the current reality, to become profitable. No other country in the world produces sugar directly from sugarcane anymore. The cost of producing sugar locally now far exceeds the price at which it can be imported. Experts question why the government should continue to spend such large amounts in subsidies to keep these enterprises running. In many cases, even after reforms, turning these entities profitable is not feasible, as doing business is not a government function. Business operations cannot be run through bureaucratic processes and government procedures, which lack the flexibility required for quick decision-making. Therefore, experts believe that many of these enterprises should be shut down, while only those linked to national security or strategic interests should be retained. The profitable ones, they suggest, should be handed over to the private sector.
Mahbub Ahmed, a former Senior Secretary of the Finance Division, told Bonik Barta, “The problems in state-owned enterprises are not unique to Bangladesh; they are also found in neighboring countries such as India and Pakistan, as well as in many other developing nations. The World Bank, IFC, and several international organizations have conducted studies and made recommendations on this issue. Only a strong political government can make the decision to reform state-owned enterprises. However, reforming a few selected institutions individually will not work. Such initiatives have failed in the past. Comprehensive reform is therefore necessary.”
Several state-owned enterprises, however, are performing well — both financially and commercially. Among the most profitable ones are the Bangladesh Petroleum Corporation (BPC), Bangladesh Telecommunication Regulatory Commission (BTRC), Chittagong Port Authority (CPA), Civil Aviation Authority of Bangladesh (CAAB), and Bangladesh Bridge Authority (BBA). Back in FY 2023–24, BTRC made a profit of BDT 43.28 billion. Among others, BPC posted profit at BDT 39.43 billion, CPA at BDT 20.43 billion, CAAB at BDT 19.48 billion, and BBA at BDT 5.47 billion.