BM Desk: The Bangladesh government has initiated a new law to privatize or merge several of the country’s loss making Companies.
Sources inside the finance ministry said a draft law titled ‘Government Owned Enterprises (Management and Coordination) Act, 2025’ has been prepared. The draft law will give the finance ministry the power to divest, merge or liquidate various government-owned enterprises into the private sector.
Government institutions are incurring losses in many cases, which have become a burden for the country. Despite taking various initiatives at the government level, it was not possible to make them profitable. The new law aims to solve this problem. The law will be implemented with the help of the World Bank. Draft
The law allows the government to appoint one or more independent directors to a financial institution at any time and restricts the voluntary retirement of top officials while pending charges of corruption or criminal offences.
Finance Ministry officials say it will form a steering committee to oversee and coordinate the activities of government institutions. Based on its recommendations, government institutions can be privatized or abolished.
Experts believe that if implemented, it will be easier for the government to decide to privatize or close loss-making institutions.
The draft law states that government-owned institutions will disclose their business goals, management plans, customer satisfaction surveys and other information. If any institution fails to disclose information or provides incorrect information, action will be taken against the concerned persons.
Fahmida Khatun said that only loss-making companies should be left to the private sector. The institutions providing essential services should be kept under the government.
Former Finance and Commerce Secretary Mahbub Ahmed considers the initiative as positive. However, he believes that if these institutions are not run properly, change will not come through a law alone.
He said, “These organizations need strong management for proper management. A bold political decision is also needed for privatization or abolition.
