Home / Knowledge / News / Textiles / Losses of state-owned enterprises step-up
Losses of state-owned enterprises step-up
Jul '08
Increasing price subsidy for petroleum products has increased the net loss of the state-owned enterprises (SoEs) by 132 percent in 2007-08 fiscal.

A draft economic review was made by the finance ministry which revealed that some 44 SoEs incurred net loss of Tk5,276 crore in the period, up from Tk2,275 crore of the previous year.

Of this 44, around 15 SoEs were in losses while the others either made a marginal profit or broke even. In fiscal 2007-08 the total SoE sector losses, arising out of the losses incurred by the 15 SoEs, stood at Tk8,635 crore, up from Tk 4,774 crore in 2006-07 fiscal.

Bangladesh Petroleum Corporation (BPC) alone incurred a loss of Tk5,882 crore which is a substantial increase from Tk2,628 crore registered in 2006-07 fiscal. The finance ministry calculated losses of BPC incurred till May 15.

Reasons attributed are inefficiency on part of BPC to reduce the gap between the prices of petroleum in the international market and those prevalent in the domestic one.

Although Government had plans to increase the prices of petroleum in the budget last year, BPC could not do so, since the prices of essential commodities were already high and natural disasters had also taken a toll on the market.

The Power Development Board (PDB) in 2007-08 also incurred loss which stood at Tk1361 crore, a 50 percent increase from Tk904 of the precedent year. Bangladesh Chemical Corporation also depicted a downward trend incurring losses amounting to Tk365 crore, up from Tk309 crore over the corresponding year.

The situation was a little different for Bangladesh Jute Mills Corporation (BJMC), whose losses declined to Tk108 crore in 2007-08 compared to Tk320 crore of the previous year.

Although profits from the SoEs also increased, it was very marginal when compared to the heavy losses recorded from various industries. SoE sector profit in 2007-08 fiscal totaled Tk 3,359, which was Tk 2499 crore in the previous fiscal.

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search