Govt Adopts Global Standards for SOE Asset Management

The government has launched the country’s first comprehensive policy manual on asset and lease management for State-Owned Enterprises (SOEs) and Autonomous Bodies (ABs), aligning public sector practices with global standards.

Finance and Science and Technology Adviser Dr. Salehuddin Ahmed inaugurated the Policy and Procedures Manual for Property, Plant and Equipment (PPE) and Lease at a dissemination workshop held on Thursday at the Finance Division.

Dr. Ahmed emphasized that greater efficiency in managing public assets—80 percent of which are held by SOEs and ABs—can play a vital role in reducing the government's contingent liabilities, which currently amount to Taka 6.5 lakh crore.

“This initiative marks a turning point in public asset management,” said Dr. Ahmed. “A standardized asset register will enhance transparency, ensure uniformity, reduce financial risk, and improve the efficiency of resource utilization.”

The event was held under the “Scheme on Strengthening SOE Governance,” part of the broader Strengthening Public Financial Management Programme to Enable Service Delivery (SPFMS).

Finance Division Secretary Dr. Md Khairuzzaman Mozumder, who presided over the event, stressed the need for accurate asset valuation to improve the financial credibility and credit ratings of public entities. He also urged government bodies to maintain updated fixed asset registers for greater accountability.

The manual introduces structured guidance for managing both tangible and intangible long-term assets—covering land, buildings, machinery, software, and intellectual property. It sets out clear classifications, valuation methods, and standardized procedures for depreciation, disposal, revaluation, and impairment.

A key feature is the Fixed Asset Register, which mandates the recording of detailed information such as purchase date, cost, depreciation rate, identification number, and location. Only costs directly attributable to asset acquisition—such as purchase price, delivery, and legal fees—will be capitalized.

The policy establishes a capitalization threshold requiring Finance Division approval for any item over Taka 50,000 to be recorded as an asset.

On lease management, the manual introduces international accounting standards by distinguishing between finance and operating leases. Finance leases—those longer than 12 months and valued above Taka 500,000—must recognize both right-of-use assets and lease liabilities. Operating leases will be expensed over the lease term.

Other key provisions include detailed depreciation and amortization methods, discount rate calculations, and clear guidelines on maintenance responsibilities for leased assets.

Presentations at the event were delivered by Joint Secretaries Md Amirul Islam and Md Firoz Ahmed, who outlined how the manual will promote consistency, improve financial reporting, and support data-driven decision-making in public sector asset management.

Senior officials, including Nasrin Sultana (Grade-1, Regulation & SOE), Dr. Mohammad Abu Yusuf (Additional Secretary), Rahima Begum (Additional Secretary, SOE-2), and other joint secretaries, also contributed to the discussions.

Officials noted that this new policy framework will reduce irregularities, enhance compliance, and ensure optimal use of public resources—bringing Bangladesh’s public asset governance in line with international best practices.