Dhaka, April 11 -- The immediate past interim government finance adviser, Dr Salehuddin Ahmed, on Saturday said that contingent liabilities linked to state-owned institutions have surged to more than Tk5.0 trillion, posing a significant fiscal risk for the government.

Speaking at a banking and finance risk conference as the chief guest, being held at Gulshan on the day Dr Ahmed said the liabilities-largely extended as guarantees to government organisations to procure goods and services-could become a burden the state may struggle to absorb.

"If these guarantees are called, it will be very risky for the government, as repayment capacity remains uncertain," he said.

Contingent liabilities typically arise from government-backed guarantees...