A classic example is the recent closure of Adamjee Jute Mills which was losing over Tk 1.0 billion (or 11 per cent of gross losses of SOEs) during recent years, with accumulated losses running equivalent to Tk 11.4 billion, and adding Tk 3.2 billion in liability to four nationalised commercial banks (NCBs), with no hope of salvaging principal amount.
While it was exporting goods worth about $ 20 million annually, at the same time it was running up losses of almost the same amount each year.
So much so for government extending a 100 per cent export subsidy to the mills!
Adamjee Mills case just one off and there are several that can easily run up about 11 per cent that calls for government prudence and need to enforce discipline over government finances.
Overall, the government shake itself form the morass as rise above narrow political meandering and provide necessary direction and will to raise the confidence of the industry and foreign investors.
marketing@alchempro.com
