Staff Correspondent

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 Tk 6.5 lakh crore.

He made the remarks while launching the Policy and Procedures Manual for Property, Plant & Equipment (PPE) and Lease—the first of its kind in Bangladesh—at a dissemination workshop held on Thursday at the Finance Division.

The event was organized under the Scheme on Strengthening SOE Governance under the Strengthening Public Financial Management Program 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, 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 Tk 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 Tk 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.