Bangladesh Targets Tech-Driven Economy With ICT Reforms

Long regarded as a supporting sector rather than a major growth engine, Bangladesh’s information and communication technology (ICT) and telecommunications industry is now being placed at the centre of the country’s economic transformation.

The government has set a target of increasing the sector’s contribution to gross domestic product (GDP) from the current 1–2 percent to 10 percent within the next five years, with the latest budget outlining an ambitious roadmap focused on digital infrastructure, high-speed connectivity, investment-friendly policies and a unified digital public service platform.

If achieved, the target would represent a major structural shift in Bangladesh’s economy, moving the country closer to a technology-driven growth model while creating skilled jobs and expanding exports of digital services.

To achieve the goal, the government plans to develop ICT and telecommunications as priority industries by expanding wireless and wireline connectivity, strengthening digital infrastructure, developing skilled human resources, introducing a “One Citizen, One ID, One Digital Wallet” system and creating a more investment-friendly policy environment.

The government says affordable and reliable internet is essential for expanding the ICT sector and transforming Bangladesh into a digital economy.

As part of a broader telecommunications reform programme, it has undertaken measures to improve internet quality and bring services closer to global standards.

The reform agenda includes ensuring 5G coverage for 90 percent of the population and providing broadband speeds of up to 100 Mbps through coordinated efforts by mobile network operators and fixed broadband service providers.

To improve connectivity in remote and rural areas, the government has also launched initiatives to expand fibre-based networks, including the establishment of a National Fibre Bank.

According to the budget document, high-speed free internet services have already been introduced at railway stations and airports across the country.

Over the past four months, 4.1 million new 4G mobile connections and 400,000 new high-speed broadband connections have been added, the document said.

The government also plans to establish an integrated Digital Public Infrastructure (DPI) based on the “One Citizen, One ID, One Digital Wallet” concept.

The system is expected to allow 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 identity and wallet system would reduce complications arising from multiple identity platforms, improve interoperability among government databases and strengthen data sharing across public institutions.

The government expects the initiative to improve transparency, accountability and efficiency in public service delivery while making services faster and more accessible.

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 an important component of its long-term economic strategy.

The government believes sustained investment in digital infrastructure, innovation and human resource development will be essential 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 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 development will be necessary to maintain competitiveness.

The government is also focusing on developing innovation hubs, startup ecosystems and research facilities to encourage technology commercialisation and strengthen 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. Wider adoption of e-commerce, digital payments and online public services is also expected to strengthen financial inclusion and improve governance.

Despite the sector’s strong potential, experts said several challenges remain, including strengthening cybersecurity, improving digital literacy, ensuring reliable internet access in rural areas and maintaining a favourable regulatory environment for technology businesses.

Government documents emphasised that effective implementation of development programmes, appropriate policy measures and greater private-sector participation will be crucial to achieving the vision of a digitally empowered economy.

If successfully implemented, the ICT and telecommunications sector could emerge as one of Bangladesh’s key growth pillars, generating high-quality employment, attracting foreign investment, boosting exports and significantly increasing its contribution to the national economy.