To take Bangladesh’s economy to new heights, the government is now placing its biggest bet on the technology sector. In the proposed national budget for the 2026-27 fiscal year, information and communication technology (ICT) and telecom have been declared a “thrust sector,” or a sector of special priority. The aim is to build a technology-driven economy, create jobs and transform the young population into human resources capable of competing globally.
According to the government’s plan, although the ICT sector’s contribution to GDP currently stands at between 1 and 2 percent, it will be raised to 10 percent within the next five years. To this end, this year’s budget brings announcements of large-scale investment and tax incentives in digital infrastructure, innovation, research, startups and advanced technology.
In this year’s proposed budget, an allocation of Tk 2,049 crore has been proposed for the information and communication technology division, up from Tk 2,866 crore in the revised budget of the 2025-26 fiscal year. An allocation of Tk 2,141 crore has been proposed for the posts and telecommunications division. In the revised budget of the 2025-26 fiscal year, this allocation was Tk 1,987 crore. In other words, the combined direct allocation for the ICT and telecommunications sectors in the main budget stands at Tk 4,190 crore.
Entering the era of 5G and high-speed internet: The budget sets a target of delivering 5G technology to 90 percent of the country’s people. At the same time, a plan has been adopted to ensure 100 Mbps broadband speed nationwide. To implement this goal, an initiative has been taken to set up a “National Fiber Bank,” which will help expand high-speed internet service at affordable prices in various parts of the country.
To reduce ordinary people’s communication costs, a proposal has also been made to withdraw the existing Tk 300 tax on every SIM card. In addition, a proposal has been made to lift the source tax related to telecom operators’ revenue-sharing and licensing fees, which could play a role in attracting new investment to the sector.
Preparing for AI, robotics and the Fourth Industrial Revolution: Artificial intelligence (AI) is now one of the driving forces of the world economy. In this context, the government has emphasized the use of AI in government services, education, health, agriculture and urban management. The proposed budget sets out plans to use AI-based technology to build smart cities, improve citizen services, and increase transparency and efficiency in administrative activities. At the same time, announcements have been made to set up specialized research laboratories in AI, semiconductors, robotics, machine learning and big data analysis.
On the path to digital identity and a cashless economy: To make digital services easier and more secure, a plan has been adopted to implement “One Citizen, One ID, One Digital Wallet.” Through this, a citizen will be able to access various government and private services and carry out secure financial transactions using a single digital identity.
To build a cashless economy, a proposal has also been made to reduce duties and advance tax on the import of point-of-sale (POS) machines.
Major incentives for startups and freelancers: To foster technology entrepreneurs, a proposal has been made to set up a Tk 500 crore “Startup Fund” in the coming fiscal year. There is also a plan to keep VAT-exemption benefits in place for startup firms until 2035.
There is good news for freelancers as well. Alongside an extension of the tax exemption on income earned from IT freelancing, a proposal has been made to fully waive the 15 percent VAT.
New prospects for the electronics and semiconductor industries: The government has set a goal of transforming Bangladesh into a global electronics manufacturing hub within the next five years. To this end, a proposal has been made to increase tax benefits on raw materials used in producing laptops, computers, mobile phones and SSDs.
In particular, announcements of large duty and tax exemptions have been made for the semiconductor industry — covering chip design, testing and packaging — until 2031, to attract investment.
In addition, “research to market” and “innovation to market” strategies have been adopted to link research directly with commercial success. A special allocation of Tk 200 crore has also been proposed for the research and innovation sector.
Speaking on the proposed budget, Suman Ahmed Sabir, chief technology officer of the transmission and telecommunications firm Fiber@Home Limited and a technology expert, said this year’s budget — standing on four pillars of infrastructure development, tax relief, expansion of digital services and investment in innovation — would take Bangladesh a step forward on the path to a technology-driven “Smart Bangladesh.” Its success, however, would depend on swift implementation, building a skilled workforce and policy continuity.
According to these technologists, such initiatives will help prepare Bangladesh’s youth for the future job market. These benefits will further encourage young people to become entrepreneurs and to earn foreign currency.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report