Liabilities at state entities dwarf liquid assets

Liabilities at 14 "very high risk" state-owned enterprises 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 entities have amassed combined liabilities of Tk 172,016.94 crore while holding a mere Tk 2,837.23 crore in cash and equivalents, the Finance Division disclosed in a statement on Sunday. 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 on 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 639,782.58 crore, with 26 percent tied to subsidiary loan agreements.

At the event, Finance Adviser Salehuddin Ahmed, said, "SABRE+ is more than just a digital tool; it represents a pivotal shift towards data-driven, transparent, and accountable governance across state-owned enterprises and autonomous bodies."

Highlighting the importance of reliable data and internal controls, he added, "Good governance requires timely evaluation and strong oversight. SABRE+ gives us the tools to achieve that."