Liabilities at Bangladesh state entities dwarf liquid assets

Liabilities at 14 "very high risk" state and autonomous entities are more than 60 times greater than their liquid assets, a severe financial imbalance that prompted warnings of systemic risk, according to an official analysis.

The group of state-owned enterprises and autonomous bodies have amassed combined liabilities of Tk 1,72,016.94 crore while holding a mere Tk 2,837.23 crore in cash and equivalents, the Finance Division disclosed in a statement today. The vast gap has warranted calls for immediate intervention.

"This imbalance poses serious fiscal risks and requires immediate policy attention," said Md Amirul Islam, a senior official at the Finance Division's Monitoring Cell, during a presentation of the findings.

The analysis was unveiled at the launch of the SABRE+ system, a new digital platform aimed at enhancing financial oversight and debt management for public bodies. The system is designed to integrate with the government's core financial database, iBAS++, to promote greater transparency.

The disclosure highlights the precarious financial health of key public sector institutions and the potential need for future government bailouts, which could place a significant burden on the national budget.

The fiscal vulnerability is not confined to the 14 high-risk institutions.

The report detailed the broader financial landscape across 101 state entities, which together face total liabilities of Tk 6,39,782.58 crore, with 26 percent tied to subsidiary loan agreements.