Only 11 of 122 SOEs financially solvent

Only 11 of Bangladesh's 122 state-owned enterprises (SOEs) and autonomous bodies have been assessed as financially solvent, signifying the fragile financial condition of much of the country's public sector.
A recent assessment by the Finance Division found that the 11 organisations had cash and liquid assets exceeding their total debt, leaving them with negative net debt - a key indicator of financial strength.
The 11 entities are the Bangladesh Energy Regulatory Commission, Bangladesh Industrial Technical Assistance Centre, Eastern Lubricants Blenders, Hotels International, Jamuna Fertiliser Company, National Housing Authority, Nuclear Power Plant Company Bangladesh, Petroleum Transmission Company, Rajshahi WASA, SME Foundation, and TSP Complex.
The assessment formed part of a broader review by the SOE Wing of the Finance Division, which scrutinised the financial performance, debt exposure, contingent liabilities, and governance practices of 122 state-owned enterprises and autonomous bodies.
The report said these organisations play an important role in economic development by providing strategic goods and services and promoting fair competition in key sectors.
Mohammad Jahangir Hossain, general manager (Accounts and Fund Management, Research and Policy Advocacy, Communication and Branding) at SME Foundation, attributes his organisation's financial strength to prudent fund management.
About 90 per cent of the foundation's funds have been invested in government treasury securities that generate returns of around 12 per cent, he tells The Financial Express.
He also says the recovery rate on loans disbursed through banks and non-bank financial institutions is "nearly 100 per cent", reflecting strong credit discipline among beneficiaries.
Abu Mohammad Saifuddin, company secretary of Eastern Lubricants Blenders, says the company's financial position is supported by sound corporate governance, a strong customer base, and steady market demand.
He says the government-owned entity distributes its products through the marketing networks of Padma, Meghna, and Jamuna petroleum companies while competing with a small number of private-sector firms.
"As a listed company on the Dhaka Stock Exchange, we maintain good corporate governance and compete fairly in the market," he says.
The Finance Division's assessment comes as concerns grow over the financial sustainability of many state-owned enterprises, several of which continue to rely on government support because of mounting losses and debt burdens.

jasimharoon@yahoo.com