Abnormal increase in SoEs
FE Report | Sunday, 20 July 2008
Net operating losses of the state-owned enterprises (SoEs) rose abnormally by about 131 per cent to Tk 30 billion in the last fiscal year (FY) over the previous year, official figures showed.
Soaring prices of petroleum oils in the international market and depreciation of the local currency with US dollar were mainly responsible for such a robust increase in the SoEs' losses, the official Bangladesh Economic Survey (BES) 2008 said.
Total losses of 44 SoEs have been estimated to be Tk 52.76 billion for the FY 2007-08 while the amount was nearly Tk 22.76 billion in the 2006-07 fiscal, despite making profits by some of the state enterprises, it said.
"Such a large increase in the SoEs' losses is the result of soaring prices of petroleum oils in the international market coupled with depreciation of Bangladesh Taka (BDT) against the US dollar," the BES said, referring to the Monitoring Cell under the Finance Division.
Against the backdrop of price escalation of oil prices, the Bangladesh Petroleum Corporation (BPC) topped the list of the loss-making SoEs in the last fiscal, it revealed.
The net operating loss of the state-run petroleum-oil marketing company BPC alone shot up by nearly 124 per cent to Tk 58.82 billion for the FY 2007-08 over the previous year's loss of Tk 26.29 billion.
The net loss of the state-run Bangladesh Power Development Board (BPDB) also rose by around 50 per cent to Tk 13.61 billion in the FY 2007-08 over the previous fiscal. The BPDB incurred a net loss to the tune of Tk 9.04 billion in the FY 2006-07, the official figures showed.
The Bangladesh Biman Corporation's (BBC) net loss increased significantly to nearly Tk 6.89 billion in the last fiscal from Tk 3.72 billion in the FY 2006-07.
The net loss of the Bangladesh Chemical Industries Corporation (BCIC) also rose to Tk 6.89 billion in the FY 2007-08 from Tk 3.72 billion while that of the Bangladesh Sugar and Food Industries Corporation (BSFIC) slightly declined to Tk 1.06 billion compared to Tk 1.09 billion in the previous fiscal.
Among the profit-making SOEs, the net operating profit of the Petrobangla declined to over Tk 6.80 billion in the last fiscal from Tk 7.63 billion in the previous fiscal while that of the Chittagong Port Authority fell from nearly Tk 2.18 to Tk 2.11 billion, the figures revealed.
Net profits of Bangladesh Export Promotion Zones Authority (BEPZA) also decreased to Tk 1.06 billion and that of the Rural Electrification Board (REB) to Tk 1.47 billion in the last fiscal compared to Tk 1.25 billion and Tk 1.57 billion respectively in the FY 2006-07.
Meanwhile, due to their huge operating losses, the government's payment in the form of grants and subsidies to some 13 SOEs also reached Tk 6.77 billion in the last fiscal while the amount was Tk 4.25 billion in the previous fiscal.
Of the total, the Water Development Board alone received nearly Tk 4.47 billion as subsidy in the last fiscal, the BES said.
On the other hand, the total debt liability of some 45 SOEs with the banking system stood at 167.49 billion until February 2008, it said, adding that about Tk 12.06 billion out of the total debt was classified.
Soaring prices of petroleum oils in the international market and depreciation of the local currency with US dollar were mainly responsible for such a robust increase in the SoEs' losses, the official Bangladesh Economic Survey (BES) 2008 said.
Total losses of 44 SoEs have been estimated to be Tk 52.76 billion for the FY 2007-08 while the amount was nearly Tk 22.76 billion in the 2006-07 fiscal, despite making profits by some of the state enterprises, it said.
"Such a large increase in the SoEs' losses is the result of soaring prices of petroleum oils in the international market coupled with depreciation of Bangladesh Taka (BDT) against the US dollar," the BES said, referring to the Monitoring Cell under the Finance Division.
Against the backdrop of price escalation of oil prices, the Bangladesh Petroleum Corporation (BPC) topped the list of the loss-making SoEs in the last fiscal, it revealed.
The net operating loss of the state-run petroleum-oil marketing company BPC alone shot up by nearly 124 per cent to Tk 58.82 billion for the FY 2007-08 over the previous year's loss of Tk 26.29 billion.
The net loss of the state-run Bangladesh Power Development Board (BPDB) also rose by around 50 per cent to Tk 13.61 billion in the FY 2007-08 over the previous fiscal. The BPDB incurred a net loss to the tune of Tk 9.04 billion in the FY 2006-07, the official figures showed.
The Bangladesh Biman Corporation's (BBC) net loss increased significantly to nearly Tk 6.89 billion in the last fiscal from Tk 3.72 billion in the FY 2006-07.
The net loss of the Bangladesh Chemical Industries Corporation (BCIC) also rose to Tk 6.89 billion in the FY 2007-08 from Tk 3.72 billion while that of the Bangladesh Sugar and Food Industries Corporation (BSFIC) slightly declined to Tk 1.06 billion compared to Tk 1.09 billion in the previous fiscal.
Among the profit-making SOEs, the net operating profit of the Petrobangla declined to over Tk 6.80 billion in the last fiscal from Tk 7.63 billion in the previous fiscal while that of the Chittagong Port Authority fell from nearly Tk 2.18 to Tk 2.11 billion, the figures revealed.
Net profits of Bangladesh Export Promotion Zones Authority (BEPZA) also decreased to Tk 1.06 billion and that of the Rural Electrification Board (REB) to Tk 1.47 billion in the last fiscal compared to Tk 1.25 billion and Tk 1.57 billion respectively in the FY 2006-07.
Meanwhile, due to their huge operating losses, the government's payment in the form of grants and subsidies to some 13 SOEs also reached Tk 6.77 billion in the last fiscal while the amount was Tk 4.25 billion in the previous fiscal.
Of the total, the Water Development Board alone received nearly Tk 4.47 billion as subsidy in the last fiscal, the BES said.
On the other hand, the total debt liability of some 45 SOEs with the banking system stood at 167.49 billion until February 2008, it said, adding that about Tk 12.06 billion out of the total debt was classified.