Long regarded as a supporting sector rather than a primary growth engine, Bangladesh’s Information and Communication Technology (ICT) and telecommunications industry is now being positioned at the centre of the country’s economic transformation.
With the government setting a target to increase the sector’s contribution to Gross Domestic Product (GDP) from the current 1-2 percent to 10 percent within the next five years, the latest budget outlines an ambitious roadmap built around digital infrastructure, high-speed connectivity, investment-friendly policies and a unified digital public service platform.
If achieved, the target would represent one of the most significant structural shifts in Bangladesh’s economy, moving the country closer to a technology-driven growth model while creating thousands of skilled jobs and expanding exports of digital services.
To achieve the target, the government plans to develop the sector as a priority industry by expanding wireless and wireline connectivity, building digital infrastructure, producing skilled human resources, introducing a “One Citizen, One ID, One Digital Wallet” system and creating a more investment-friendly policy environment.
The government said affordable and reliable internet is essential for developing the ICT sector and transforming Bangladesh into a digital economy.
As part of a comprehensive telecommunications reform programme, it has undertaken policy initiatives to improve internet quality and bring services up to global standards.
The reform agenda includes ensuring 5G network coverage for 90 percent of the population and providing broadband internet speeds of up to 100 Mbps through coordinated efforts involving mobile network operators and fixed broadband service providers.
To improve internet access in remote and rural areas, the government has also launched initiatives to expand fibre-based connectivity, including the establishment of a National Fibre Bank.
The budget document said high-speed free internet services have already been introduced at railway stations and airports across the country.
Over the past four months, the government has added 4.1 million new 4G mobile connections and 400,000 new high-speed broadband connections, according to the document.
The government also plans to build an integrated Digital Public Infrastructure (DPI) centred on the concept of “One Citizen, One ID, One Digital Wallet”.
The initiative will enable citizens to access a wide range of public and private services through a single digital identity while facilitating secure digital financial transactions, including the payment of government allowances, fees and other charges.
According to the budget document, the unified digital identity and wallet system will eliminate complexities created by multiple identity platforms, improve interoperability among government databases and strengthen data exchange across public institutions.
The government expects the initiative to enhance transparency, accountability and efficiency in public service delivery while making services faster and easier to access.
Citing a projection by the Boston Consulting Group (BCG), the budget document said Bangladesh is expected to become the world’s ninth-largest consumer economy by 2030, making digital transformation a key component of the country’s long-term economic strategy.
The government believes sustained investment in digital infrastructure, innovation and human resource development will be crucial to unlocking the sector’s full potential.
It also expects the expansion of high-speed broadband, advanced mobile technologies, data centres and cloud infrastructure to strengthen the country’s digital ecosystem, improve public services and support businesses and entrepreneurship.
Industry experts said Bangladesh’s growing pool of young technology professionals is well positioned to meet rising global demand for software development, business process outsourcing, freelancing, artificial intelligence, cybersecurity and digital financial services.
However, they stressed that continued investment in technical education and specialised skills training will be essential to remain competitive.
The government is also focusing on developing innovation hubs, startup ecosystems and research facilities to encourage technology commercialisation, while promoting greater collaboration among academia, industry and public institutions.
The ICT sector is increasingly supporting agriculture, manufacturing, healthcare, education and financial services by improving productivity and expanding access to digital solutions. The wider adoption of e-commerce, digital payments and online public services is also expected to strengthen financial inclusion and governance.
Despite the sector’s strong prospects, experts say challenges remain, including strengthening cybersecurity, improving digital literacy, ensuring reliable internet connectivity in rural areas and maintaining a favourable regulatory environment for technology businesses.
The government documents emphasised that effective implementation of development programmes, appropriate policy measures and greater private sector participation will be critical to achieving the vision of a digitally empowered economy.
If successfully implemented, the ICT and telecommunications sector is expected to emerge as one of Bangladesh’s strongest growth pillars, generating high-quality employment, attracting foreign investment, boosting exports and significantly increasing its contribution to the national economy.