Bangladesh’s state-owned enterprises (SOEs) are expected to face significant losses in the fiscal year 2022-23, marking a sharp contrast to their profitable nine-year streak.
The recently released Bangladesh Economic Review-2023 revealed that these companies and corporations are projected to incur a net loss of Tk 137.41 billion. This stark decline follows a period of increasing net profits since the fiscal year 2013 when net losses amounted to approximately Tk 26.05 billion.
The peak of their profitability was reached in FY21, with net profits soaring to Tk 151.60 billion, but the tide turned in FY22 when net profits plummeted to Tk 17.08 billion.
The dire financial situation of SOEs is primarily attributed to the abysmal performance of two key entities, the Bangladesh Petroleum Corporation (BPC) and the Bangladesh Power Development Board (BPDC), both experiencing a significant surge in losses during FY23.
The BPC recorded the highest losses at Tk 70.87 billion, a staggering increase of over 257% compared to the previous fiscal year’s Tk 19.83 billion loss. Following closely, the BPDC reported an estimated loss of Tk 69.69 billion, surpassing its FY22 net loss of Tk 32.43 billion.
Other notable loss-making SOEs include the Bangladesh Sugar and Food Industries Corporation (BSFIC), with Tk 6.78 billion in losses, and the Bangladesh Jute Mills Corporation (BJMC), with Tk 2.48 billion.
Several other enterprises, namely BBC, BSCIC, BIWTC, BPRC, and BTMC, have also incurred losses. Conversely, the Bangladesh Bridges Authority (BBA) emerged as the most profitable SOE, generating Tk 28.43 billion in profit, followed by the Chittagong Port Authority with Tk 13.92 billion and the Bangladesh Oil, Gas and Mineral Corporation with Tk 4.72 billion.
