30 of 37 state owned industrial enterprises incur losses

Thirty of 37 production-oriented factories and enterprises under various corporations and agencies of the Ministry of Industries are struggling with losses. The remaining seven enterprises made only nominal profits. According to ministry data, the enterprises posted a combined net loss of Tk 753 crore in the latest fiscal year against a combined net profit of Tk 364 crore.

Several factors including declining service life, gas shortages and uncertainty over the availability of raw materials have pushed factories under the Bangladesh Sugar and Food Industries Corporation, Bangladesh Steel and Engineering Corporation and Bangladesh Chemical Industries Corporation into losses. Experts said the financial weakness of these enterprises is not only a matter of risk. It is also linked to the efficiency of budget allocation and the use of taxpayers’ money. As a result, they have been creating significant pressure on the budget year after year.

The financial picture emerged in a report submitted by the Ministry of Industries to the Standing Committee on the Ministry of Industries of the 13th Jatiya Sangsad. The report reviewed the final and ongoing audit reports for fiscal years 2024 to 2025 and 2025 to 2026 and presented specific income and expenditure figures for each enterprise.

A meeting was held at the Jatiya Sangsad Bhaban on Tuesday under the chairmanship of Standing Committee on the Ministry of Industries Chairman Md Abul Kalam. According to the ministry report presented at the meeting, only Carew & Co (Bangladesh) among the nine operational sugar mills under the Bangladesh Sugar and Food Industries Corporation (BSFIC) is profitable.

In fiscal year 2024 to 2025, the company earned Tk 528 crore 22 lakh 97 thousand and spent Tk 415 crore 5 lakh 37 thousand. Its profit after tax and excluding interest on bank loans was Tk 132 crore 31 lakh 76 thousand. The company’s income continued to rise in fiscal year 2025 to 2026. Its income after interest on bank loans and tax stood at Tk 204 crore 4 lakh 2 thousand during the fiscal year.

On the other hand, Thakurgaon Sugar Mills incurred a loss of Tk 21 crore 77 lakh 93 thousand in fiscal year 2025 to 2026 compared with Tk 16 crore 15 lakh 85 thousand in the previous year. Rajshahi Sugar Mills incurred losses of Tk 34 crore 26 lakh 48 thousand and Tk 28 crore 58 lakh 75 thousand respectively. North Bengal Sugar Mills incurred losses of Tk 31 crore 87 lakh 85 thousand and Tk 8 crore 10 lakh 2 thousand. Natore Sugar Mills incurred losses of Tk 27 crore 70 lakh 44 thousand and Tk 10 crore 68 lakh 45 thousand.

Joypurhat Sugar Mills incurred losses of Tk 35 crore 17 lakh 35 thousand in fiscal year 2025 to 2026 and Tk 28 crore 47 lakh 11 thousand in the previous year. Mobarakganj Sugar Mills incurred losses of Tk 41 crore 59 lakh 23 thousand and Tk 38 crore 24 lakh 23 thousand respectively. Faridpur Sugar Mills incurred losses of Tk 28 crore 95 lakh 83 thousand and Tk 20 crore 59 lakh 5 thousand. Jilbangla Sugar Mills incurred losses of Tk 17 crore 69 lakh 55 thousand and Tk 15 crore 1 lakh 60 thousand respectively.

Besides, almost all of the six sugar mills where crushing operations have not started are facing substantial losses. In fiscal year 2025 to 2026, Panchagarh Sugar Mills incurred a loss of Tk 51 crore 6 lakh 93 thousand compared with Tk 47 crore 9 lakh 56 thousand in the previous year. Setabganj Sugar Mills incurred losses of Tk 7 crore 16 lakh 63 thousand and Tk 9 crore 98 lakh 96 thousand respectively. Rangpur Sugar Mills incurred losses of Tk 2 crore 48 lakh 42 thousand and Tk 2 crore 27 lakh 87 thousand.

Shyampur Sugar Mills incurred losses of Tk 3 crore 42 lakh 74 thousand and Tk 3 crore 42 lakh 27 thousand respectively. Pabna Sugar Mills incurred losses of Tk 2 crore 71 lakh 27 thousand and Tk 2 crore 28 lakh 72 thousand respectively. As the audit of Kushtia Sugar Mills is ongoing, its final accounts have not been provided. However, the company spent Tk 27 crore 54 lakh 87 thousand in fiscal year 2025 to 2026 and earned only Tk 44 lakh 61 thousand before tax. The mill incurred a loss of Tk 3 crore 48 lakh 41 thousand in the previous year.

Renwick Yajneswar & Co also incurred losses of Tk 1 crore 90 lakh 94 thousand in fiscal year 2025 to 2026 and Tk 1 crore 43 lakh 42 thousand in the previous year.

According to the report, three of the nine enterprises under the Bangladesh Steel and Engineering Corporation (BSEC), Pragoti Industries Limited, GEM Company Limited and Dhaka Steel Works Limited, posted profits while the others incurred losses.

In fiscal year 2025 to 2026, Pragoti Industries Limited posted a profit before tax of Tk 63 crore 3 lakh 2 thousand compared with Tk 48 crore 48 lakh 49 thousand in the previous year. GEM Company Limited posted a profit of Tk 6 crore 86 lakh 24 thousand compared with Tk 8 crore 4 lakh 17 thousand. Dhaka Steel Works posted a profit of Tk 3 crore 63 lakh 66 thousand.

National Tubes Limited posted a profit of Tk 7 crore 33 lakh 23 thousand in fiscal year 2024 to 2025 but returned to losses in fiscal year 2025 to 2026. Its loss this year was Tk 6 crore 62 lakh 85 thousand.

Bangladesh Blade Factory under the corporation incurred a loss of Tk 4 crore 74 lakh 20 thousand in fiscal year 2025 to 2026 compared with Tk 5 crore 89 lakh 38 thousand in the previous year. Atlas Bangladesh incurred losses of Tk 3 crore 27 lakh and Tk 3 crore 25 lakh respectively. Eastern Tubes incurred losses of Tk 5 crore 8 lakh 36 thousand and Tk 4 crore 1 lakh 2 thousand.

Eastern Cables incurred losses of Tk 6 crore 79 lakh 62 thousand and Tk 10 crore 97 lakh 36 thousand respectively. Gazi Wires incurred losses of Tk 3 crore 20 lakh 7 thousand and Tk 4 crore 68 lakh 62 thousand.

Of the 14 fertilizer and other factories under the Bangladesh Chemical Industries Corporation (BCIC), only Gazi Pur Urea Fertilizer Company Limited (GPFPLC) and TSP Complex Limited (TSPCL) are profitable.

In fiscal year 2025 to 2026, GPFPLC posted a profit of Tk 368 crore 61 lakh compared with Tk 232 crore 68 lakh in the previous year. TSPCL posted a profit of Tk 26 crore 41 lakh compared with Tk 32 crore 86 lakh in the previous year.

Chittagong Urea Fertilizer Limited (CUFL) posted a profit of Tk 220 crore 94 lakh in fiscal year 2024 to 2025 but incurred a loss this year. Its loss stood at Tk 154 crore 84 lakh.

Besides, Jamuna Fertilizer Company Limited (JFCL) incurred a loss of Tk 87 crore 82 lakh in fiscal year 2025 to 2026 compared with Tk 140 crore 50 lakh in the previous year. Ashuganj Fertilizer and Chemical Company Limited (AFCCL) incurred losses of Tk 121 crore 35 lakh and Tk 190 crore 61 lakh respectively.

Bangladesh Insulator and Sanitary Ware Factory Limited (BISFL) incurred losses of Tk 19 crore 14 lakh and Tk 21 crore respectively. Shahjalal Fertilizer Company Limited (SFCL) incurred losses of Tk 258 crore 39 lakh and Tk 134 crore 87 lakh.

Chatak Cement Company Limited (CCCL) incurred losses of Tk 43 crore 24 lakh and Tk 40 crore 7 lakh respectively. Tekerghat Limestone Mining Project (TLMP) incurred losses of Tk 8 lakh in both years. Dhaka Leather Company Limited (DLCL) incurred losses of Tk 1 crore 96 lakh and Tk 1 crore 42 lakh respectively. Usmania Glass Sheet Factory PLC (UGSFL) incurred losses of Tk 8 crore 31 lakh and Tk 9 crore 29 lakh.

The final accounts of the Training Institute for Chemical Industries (TICI), DAP Fertilizer Company Limited (DAPCL) and Karnaphuli Paper Mills Limited (KPML) were not shown.

Analysis shows that a significant portion of the 37 enterprises under the Ministry of Industries have been suffering losses for years due to structural problems, a lack of modern machinery and rising production costs.

The ministry told the parliamentary committee that revenue income has declined because the factories are not receiving gas at the pressure and volume specified in their designs. Other factors include the declining service life of the factories, outdated machinery, uncertainty over the availability of raw materials and rising prices. The selling prices of products manufactured by the factories have also been set below production costs.

The standing committee has emphasized regular monitoring and development activities to overcome stagnation in the industrial sector and make the loss making enterprises profitable.

Dr Mostafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), said the financial weakness of state owned enterprises and autonomous bodies is not only a matter of risk. It is also linked to the efficiency of budget allocation and the use of taxpayers’ money. The government ultimately has to bear the burden of enterprises that continue to incur losses and carry debt year after year. As a result, they are creating significant pressure on the budget.

He said a clear reform program is needed to determine which enterprises can be transferred to the private sector, which can be operated under public private partnerships, which have opportunities to offload shares on the capital market and which can retain government ownership while their management is handed over to the private sector.