The Privatisation Commission is right to reject calls to reopen the loss-making silk factory at Rajshahi.
It would go against the mission of the commission to support such calls, given that it exists to divest the government of unsuccessful state-owned enterprises and to make better use of state assets.
The government previously sought to reopen this factory during its last term of office. However, despite persuading the Bangladesh Bank to offer soft loans, the factory which was established in 1961 and closed in 2002 did not attract sufficient interest under the Public Private Partnership program.
This should be accepted as proof that spending more taxpayer money on this failed enterprise is not justified.
We are disappointed therefore that the government is seeking to pressure the commission to hand the factory to the Ministry of Textile and Jute for development by the Bangladesh Silk Development Board.
It is precisely this type of pressure and calls by vested interests that keeps so many loss-making enterprises as a drain on state funds.
It is a mistake to compound such losses to the taxpayer by reopening a factory which has been proven not to work as a going concern.
The government should be speeding up, not slowing down, the work of the commission.
Scarce taxpayer funds should not be wasted on subsidies for loss-making enterprises, while sectors such as education and health care continue to need more government attention.
This factory and others like it should be leased or sold to the private sector so that the land and assets can be put to more productive use.