Govt tightens oversight of public assets to curb fiscal risks

The government has introduced a new "Property, Plant and Equipment (PPE) and Lease Manual" to strengthen asset governance and mitigate long-term liabilities, as hidden fiscal exposures from state-owned entities continue to pose risks to macroeconomic stability.

The move comes amid revelations by the Finance Division that Bangladesh’s total contingent liabilities have reached Tk 6.39 lakh crore.

Much of this is linked to state-owned enterprises (SOEs) and poorly monitored lease arrangements that often remain outside regular budget calculations, according to a press release.

Senior officials disclosed the developments at a two-day workshop titled “SOEs and ABs Governance: Progress Review and Way Forward,” which concluded in Cox’s Bazar today.

The event was organised today by the SPFMS programme under the Finance Division.

Addressing the inaugural session, Md Hasanul Matin, additional secretary (budget and macroeconomics), noted that the inefficient performance of several SOEs and the creation of overlapping authorities have significantly increased contingent liabilities.

“Bangladesh needs to restore its governance approach with global best practices,” he said, identifying rising debt burdens and declining revenue as major challenges requiring a “whole-of-government” approach.

The Finance Division's assessment highlighted that 14 “very high-risk” entities represent liabilities equivalent to 3.13 percent of GDP, while another 28 high-risk entities account for 1.67 percent. Persistent weaknesses include delays in audited financial statements and a shortage of professional accountants.

Ziaul Abedin, additional secretary and national program director of SPFMS, argued that only commercially viable SOEs should operate in a market economy.

“Transforming SOEs requires strong political commitment. We must rethink their future through broader, sustainable business models,” he added.

Rahima Begum, director general of the Monitoring Cell, emphasised that the new PPE manual aligns with international standards to ensure systematic tagging and tracking of government assets.

The workshop also detailed the “SOEs and ABs Governance Reform Strategy 2025-30,” which proposes enacting a comprehensive SOE law and publishing annual fiscal risk statements to reduce reliance on government transfers.