State entities projected to incur Tk28,047cr losses in FY25

Despite using the automated dynamic fuel pricing mechanism, Bangladesh Petroleum Corporation (BPC) is projected to incur a net loss of Tk5,564 crore in the next fiscal year, primarily due to increased operating expenses as estimated by the Finance Division.

However, in the revised budget of the current fiscal year, the finance ministry anticipates that the state-owned fuel oil supplier will achieve a profit of Tk3,841 crore.

Similarly, the Finance Division has estimated a loss of Tk18,106 crore for the Bangladesh Power Development Board, compared to Tk6,117 crore estimated in the revised budget for FY24, according to finance ministry officials familiar with budget formulation.

The summary of the budget of state-owned enterprises for FY25, prepared by the Finance Division, indicates potential losses for entities responsible for ensuring power and energy security in the country.

Additionally, the finance ministry has highlighted the income and expenditure of 49 state-owned institutions, projecting a combined net loss of Tk28,047 crore for the upcoming fiscal year, the officials told The Business Standard.

In contrast, the revised budget for FY24 had estimated losses at Tk5,990 crore, suggesting that losses for state-owned enterprises are set to increase more than fourfold in the next fiscal year.

Bangladesh Textile Industries Corporation, the regulator of state-owned textile mills, has estimated losses of Tk15 crore. Currently, there are 25 textile mills under the control of BTMC, with six operational and the rest closed.

Similarly, the net loss of the 26 mills under the Bangladesh Jute Mills Corporation is estimated at Tk247 crore, while Tk290 crore in losses is estimated for the 15 mills under the Bangladesh Sugar and Food Industries Corporation.

The Finance Division has projected a loss of Tk1,335 crore for the Bangladesh Chemical Industries Corporation.

However, the Finance Division anticipates that the government's steel plants will achieve profitability by the end of the next financial year, with the nine operational factories expected to generate a net profit of Tk103 crore in FY25. The Dhaka Water Supply and Sewerage Authority is estimated to earn Tk235 crore in the next financial year.

Analysts have attributed the losses of state-owned entities to various factors, including inefficiency, outdated machinery, irregularities, and corruption. Additionally, the country's private think tanks, such as the Centre for Policy Dialogue and the Policy Research Institute, have advocated for closing or privatising these institutions.

The state-owned Trading Corporation of Bangladesh expects a net loss of Tk5,988 crore in the next financial year. 

Currently, it supplies essential commodities like edible oil, sugar, lentils, and rice to one crore families once a month at affordable prices, and adjusts its offerings, including onions and chickpeas, based on market conditions.

The Finance Division has also forecasted losses for the Bangladesh Rural Electrification Board in the next financial year, estimating a loss of Tk5,262 crore for the agency responsible for rural electricity supply. On the other hand, the Civil Aviation Authority is projected to earn Tk203 crore in the next financial year.