Govt launches global standards adopted for SOE asset, lease management

BSS
Published On: 08 Aug 2025, 16:36
Finance and Science and Technology Adviser Dr Salehuddin Ahmed. File photo

DHAKA, Aug 8, 2025 (BSS) - Finance and Science and Technology Adviser Dr 
Salehuddin Ahmed has said that enhancing efficiency in asset management 
across State-Owned Enterprises (SOEs) and Autonomous Bodies (ABs), which 
together hold 80 percent of the government's assets, could play a crucial 
role in reducing the government's contingent liabilities, currently standing 
at Taka 6.5 lakh crore.

The adviser made the remarks while launching the Policy and Procedures Manual 
for Property, Plant and Equipment (PPE) and Lease-the first of its kind in 
Bangladesh-at a dissemination workshop held on Thursday at the Finance 
Division in the city, said a press release here today. 

The event was organized under the Scheme on Strengthening SOE Governance 
under the Strengthening Public Financial Management Programme to Enable 
Service Delivery (SPFMS).

"This initiative of maintaining a comprehensive asset register will transform 
how public assets are managed-by ensuring uniformity, transparency, enhancing 
efficiency and reducing financial risks," Dr. Ahmed noted. 

Finance Division Secretary Dr. Md Khairuzzaman Mozumder presided over the 
workshop, which was also addressed by Nasrin Sultana, Grade-1 (Regulation, 
Implementation, Law & SOE), and Dr. Mohammad Abu Yusuf, Additional Secretary 
(Admin, Planning & TDM), as guests of honour. 

Rahima Begum, additional secretary of SOE-2, delivered the introductory 
remarks.

Joint Secretaries Md Amirul Islam and Md Firoz Ahmed made a detailed 
presentation while Joint Secretaries Mahedi Masuduzzaman, Abul Basher Md. 
Amir Uddin, and Mohammad Rezaul Haque participated as key discussants.

In his speech, Dr. Md Khairuzzaman Mozumder stressed the importance of 
accurate asset valuation to improve the credit ratings of SOEs and ABs. 

He urged public entities to maintain updated fixed asset registers to foster 
greater accountability.

The presentation by Md Amirul Islam and Md Firoz Ahmed outlined that the new 
policy serves as a structured guide for managing long-term tangible and 
leased assets-covering land, buildings, machinery, as well as intangible 
assets such as software and intellectual property. 

It defines classification methods, valuation techniques, and detailed 
processes for depreciation, disposal, revaluation, and impairment. The policy 
sets a capitalization threshold so that only assets meeting specific cost and 
useful-life criteria are recorded, with Finance Division approval required 
for expensing items over Taka 50,000.

A key feature of the manual is the requirement for an up-to-date Fixed Asset 
Register, recording purchase date, cost, depreciation rate, identification 
details, and location. It distinguishes between capitalizing and expensing 
costs, allowing only directly attributable expenses-such as purchase price, 
delivery, installation, and legal fees-to be included in asset valuation.

On lease management, the manual aligns with international standards, setting 
criteria for classifying finance leases and operating leases. Finance leases-
covering contracts over 12 months and valued above Taka 500,000-must 
recognize right-of-use assets and lease liabilities, while operating leases 
are expensed over their term. The guidelines also address depreciation or 
amortization methods, discount rate calculations, and maintenance 
responsibilities for leased assets.

Finance Division officials noted that the manual will strengthen compliance, 
improve the accuracy of financial reporting, and support more informed 
decision-making in public sector asset management. By standardizing 
procedures nationwide, it aims to reduce irregularities, enhance 
accountability, and ensure optimal utilization of public resources.

The initiative, developed under SPFMS, is expected to significantly improve 
operational efficiency and bring Bangladesh's public asset management 
practices in line with global best standards.

 

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