The government has taken an initiative to develop the medical equipment and device industry as a priority industrial sector with a view to ensuring health security and reducing import dependency, said Finance Minister Amir Khosru Mahmud Chowdhury said on Thursday.

"At present, the vast majority of medical equipment is imported, resulting in a substantial outlay of foreign exchange," he said in his budget speech in Parliament.

Finance minister starts unveiling FY27 budget in Parliament

He said the country has strong domestic potential to manufacture a wide range of medical devices, including syringes, blood pressure machines, pulse oximeters, ventilators, X-ray machines, ECG machines, hospital beds, diagnostic kits and other laboratory equipment.

To boost the pharmaceutical and medical technology sector, the government has proposed special fiscal and tax incentives for export-oriented firms, along with existing customs and duty benefits, he said.

According to the budget proposal, internationally accredited testing and certification laboratories will be set up, while an online licensing system will be introduced to simplify regulatory procedures.

A specialised medical technology park will also be established, alongside measures to ensure access to low-interest financing for investors in the sector.

The government will also prioritise biomedical engineering education, research and technological innovation, aiming to turn the medical equipment industry into a new export-oriented growth engine, contributing to healthcare delivery, employment generation and foreign exchange earnings.

In addition, the finance minister proposed an allocation of Tk 69,409 crore for the Ministry of Health and Family Welfare for FY 2026–27, equivalent to 1.02 percent of GDP.

He said the revised allocation for the health sector in FY 2025–26 stood at Tk 35,477 crore, or 0.58 percent of GDP.