Since the establishment of the Privatization Board in 1993 and thereafter the Privatization Commission in 2000, 74 state owned enterprises (SOEs) have been privatized. 54 were privatized through outright sale and 20 through offloading of shares. The major sectors for privatization are jute, textiles, steel, engineering, sugar and food, banking and financial institutions, fisheries and livestock, environment and forestry, chemicals, telecommunications and tourism.

Current Privatization Program

Preparations are now on track to dispose off SOEs to private investors. Non-financial public enterprises in the country have been categorized into seven sectors, namely:

  • Industry
  • Power, gas and water
  • Transport and communications
  • Trade
  • Agriculture
  • Construction
  • Services

As of January 2010, 22 SOEs have been included in the Commission’s current programs for privatization. These are

  1. Procurement & Sales Organization, Kaptai, Rangamati;
  2. Lumber Processing Complex, Kaptai, Rangamati;
  3. Karnafuli Timber Extruction Unit, Kaptai, Rangamati;
  4. Arco Industries Ltd., Chittagong;
  5. SAF Industries Ltd., Noapara, Jessore;
  6. Rangamati Textiles Mills Ltd., Ghagra, Rangamati;
  7. Tangail Cotton Mills Ltd., Gorai, Tangail;
  8. Magura Textile Mills Ltd., Magura;
  9. Rajshahi Silk Factory, Rajshahi;
  10. Thakurgaon Silk Factory, Thakurgaon;
  11. Dhaka Leather Company Ltd., Nayarhat, Savar, Dhaka;
  12. North Bengal Paper Mills Ltd., Pakshi, Pabna;
  13. Chittagong Chemical Complax,Chittagong;
  14. Karnafuli Rayon & Chemical Ltd., Kaptai, Rangamati;
  15. Bangladesh Can Company Ltd., Chittagong;
  16. Monowar Jute Mills Ltd., Siddirganj, narayanganj;
  17. Aroma Tea Ltd., Fauzdarhat, Chittagong;
  18. Handloom Facilities Center (HFC), Raypura, Narsingdi;
  19. Fish Landin Center & Wholesale Fish Market, Daburghat, Sunamganj;
  20. Dhaka Match Factory;
  21. Salatin Syndicate, Dhaka;
  22. Tiger Wire Products;
Source: Privatization Commision, Bangladesh


SOEs Privatized to Date

A. During the period 1993 to date
(Enterprises privatized through tender-54)
A. During the period 1993 to date
(Enterprises privatized through tender-5)
B. During the period 1993 to date
(Privatized by sale of government shares-20)
  • Madaripur Textile Mills, Madaripur
  • Sharmin Textile Mills Ltd., Dhaka
  • Kishoreganj Textile Mills, Kishoreganj
  • Kohinoor Spinning Mills, Dhaka
  • Zofine Fabrics Ltd., Dhaka
  • Barisal Textile Mills, Barisal
  • Bangladesh Cycle Industries, Dhaka
  • Purbachal Jute Industries, Jessore
  • Bangladesh Cold Storage, Munshiganj
  • Royal Textile, Bandarban
  • I.K. Industries, Chittagong
  • Feroz Ata Dal Mills, Khulna
  • National Ice Factory, Kishoreganj
  • B.G. Bangla Rice Mills, Thakurgaon
  • Engineering Industries Ltd., Tongi
  • Can Making & Tin Printing Plant, Chittagong
  • Zeenat Textile Mills Ltd., Tongi
  • Meghna Textile Mills, Tongi, Gazipur
  • Olympia Textile Mills, Tongi, Gazipur
  • Monno Textile Mills, Tongi, Gazipur
  • Fine Cotton Mills, Tongi, Gazipur
  • Luxminarayan Cotton Mills, Narayanganj
  • Pylon Industries Ltd., Chittagong
  • Kariline Silk Mills, Fouzderhat, Chittagong
  • Dhaka Cotton Mills, Dhaka
  • Deshbandhu Sugar Mills Ltd., Narsingdi
  • Mymensingh Jute Mills Ltd., Mymensingh
  • Nishat Jute Mills Ltd., Tongi, Gazipur29. Corn Flour Mills Ltd., Narayanganj
  • Cabinet Manufacturing Plant, Daulatpur, Khulna
  • Wood Treating Plant, Daulatpur, Khulna
  • Mangrove Tanin Plant, Daulatpur, Khulna
  • Bangladesh Oil Mills, Khulna
  • Kaliachapra Sugar Mills Ltd., Kishoreganj
  • Fish Export, Khulna
  • Bawa Jute Mills, Narayanganj
  • Service Facilities Center (SFC), Sirajganj
  • Noakhali Textile Mills Ltd., Laxmipur
  • Kohinoor Bettary Manufacturers Ltd., Tongi
  • Nabarun Jute Mills, Narayanganj
  • Sangu Vally Timber Industries, Chittagong
  • Hafiz Textile Mills Ltd., Chittagong
  • Fisheries Net Factory, BSCIC I/A, Ashoktola, Comilla
  • Fisheries Net Factory (Mongla), BSCIC I/A, Ashoktola, Comilla (Only Machineries)
  • Fisheries Net Factory, Chittagong Fish Harbor
  • Sylhet Pulp & Paper Mills Ltd., Sunamganj
  • Amin Agencies Ltd., Chittagong
  • Kokil Textile Mills Ltd, Brahmanbaria
  • Dockyard & Engineering Works, Narayanganj
  • Dosha Extraction, Chittagong
  • Bangladesh Diesel Plant, Joydebpur, Gazipur
  • Ashrafia Oil Mills, Khulna
  • Satrang Textile Mills, Tongi, Gazipur
  • Bangladesh Cold Storage, Khulna
  • Kohinoor Chemical Company, Dhaka
  • Chittagong Cement Clinker Company, Chittagong
  • Eagle Box & Cartoon Manufacturing Co., Dhaka
  • Squibb (Bangladesh) Ltd., Dhaka
  • Dhaka Vegetable Oil, Dhaka
  • Berger Paints Bangladesh Ltd., Chittagong
  • Siemens Bangladesh Ltd., Dhaka
  • Van Omeran Tank Terminal Ltd., Chittagong
  • International Oil Mills Ltd., Chittagong
  • Reckitt & Colman (BD) Ltd.
  • Metalex Corporation Ltd.
  • National Iron & Steel Industries Ltd., Chittagong
  • Islamic Bank Bangladesh Ltd.
  • Eastern Bank Ltd.
  • National Bank Ltd.
  • Lira Industrial Enterprise, Tongi
  • Bangladesh Monospool Paper Manufacturing Co. Ltd.
  • Ujala Match Factory Ltd., Narayanganj
  • Tiger Ware (Re-rolling) Mills Ltd., Siddhirganj
  • Eastern Industries Ltd., Tejgaon, Dhaka
Source: Privatization Commision, Bangladesh


Investment Methods in SOE Privatization

Sale through international tender
Local or foreign buyers (Individual or Firm or Company) may participate in the “sealed confidential tender” or “open tender”. Associations of workers, employees and officers of the tendered enterprises may also offer a bid for the purchase of the enterprises.
Sale of government shares in the capital market
The Commission shall arrange to sell the entire or a portion of the government shares of the public limited company identified for privatization. Such sale procedure may be accomplished through the Investment Corporation of Bangladesh (ICB) or any Member of the Stock Exchanges or any broker firm. If the Commission holds the view that the selling of the government’s entire share shall have an adverse impact on the index of the share market, the Commission, in the interest of the capital market, shall be authorised to hold some shares in the government ownership. On special cases, the government shares may be disposed off through tender.
Transfer of some portion of the shares to the employees of the enterprises in case of selling the shares through the stock exchange
When it is necessary for any company to be enlisted with the stock exchanges, for privatization, the commission may transfer a small portion of shares of the company to the employees as per the conditions specified by the government.



Sale of government shares of the private limited company
The government shall take necessary steps for selling the entire government owned share or a portion thereof as per provision of the company law and the Articles of Association of the concerned company. If it is not possible to sell the government shares as per the provision of the Articles of Association of the concerned company, the Commission may sell it by applying any other method mentioned in the policy. The decision of the Commission in this regard shall be deemed final.
Restructuring method
Any enterprise under the burden of a huge loan and no potential bidder who has participated even when the tender has been floated twice for it, in that case the Commission shall have the right to restructure the company to make it saleable.
Mixed sales methods
The Commission may use different methods for privatization, in which a part of the shares may be sold by tender and the remaining portion may be sold on the Stock Exchange.
Management contract
The Commission may invite bidders by floating an open tender for not transferring the ownership of an enterprise but for transferring the management of it for a certain period. This contract may not exceed more than three years. But the Commission may renew the contract after the expiry of the contract.
Leasing out
As an alternative to the management contract, but based on the same criteria, for the same purposes and for the same limited time, the Commission may lease out any enterprise identified for privatization or any part of its assets.
Direct asset sale (liquidation)
If any industrial, commercial, and service oriented entity, in the context of the present market condition, is deemed completely incompetent and its machinery etc. are found in such bad shape that it has no prospect in continuing its business in the competitive market, or potential buyers are unlikely to bid for it even if it is relieved of its debt burden through restructuring, in that case the method of direct asset sale may be adopted for the enterprise. The Commission may accomplish such direct asset sale process through holding open auction.
Other options
If the privatization of any enterprise is not possible through adoption of any of the methods mentioned above, the Commission may apply any other option for privatization of the enterprise. In this regard the decision of the Commission shall be deemed final.