The government has announced an extensive telecommunications and digital economy strategy aimed at expanding internet connectivity, creating employment opportunities and strengthening Bangladesh’s position in the global digital marketplace.
As part of the proposed FY2026-27 budget, Finance Minister Amir Khosru Mahmud Chowdhury said the government plans to extend 5G network coverage to 90 per cent of the population while ensuring broadband internet speeds of at least 100 Mbps nationwide. The initiative is intended to modernise the country’s telecommunications infrastructure and bring internet services closer to international standards.
To support this goal, authorities will establish a National Fibre Bank designed to expand affordable high-speed internet access, particularly in rural and underserved areas. The move comes as Bangladesh's internet user base continues to grow, with more than 131 million subscribers recorded in April 2026.
The government has identified information and communication technology as a priority sector and aims to increase its contribution to the economy from the current 1-2 per cent of GDP to 10 per cent within five years. Officials believe enhanced connectivity and digital services will play a crucial role in achieving that target.
A key focus of the strategy is employment generation. The government expects to create around 2 lakh new technology-sector jobs annually while supporting an additional 8 lakh indirect jobs through training programmes in freelancing, outsourcing and creative industries at colleges and universities.
To encourage digital entrepreneurship, the budget proposes extending existing tax exemptions on IT freelancing income to all categories of freelancing earnings. Income generated through content creation would also be fully exempt from income tax, while freelancers and content creators would receive full relief from the existing 15 per cent VAT on their services.
The government has further proposed VAT exemptions until 2035 for registered startup companies on services, imported services and office rentals, alongside a zero-per cent turnover tax rate for startups and technology-based enterprises.
To strengthen the startup ecosystem, a Tk500 crore Startup Fund has been proposed, with special emphasis on supporting women and young entrepreneurs.
Additional initiatives include the introduction of a Smart Skill Bank and internationally recognised digital certification programmes aimed at improving the competitiveness of Bangladeshi freelancers in global markets. Authorities are also engaging 1,000 foreign trainers and 7,500 local trainers to enhance technical and vocational skills development.
The government is simultaneously implementing a “One Citizen, One ID, One Digital Wallet” system to streamline access to public and private services through a unified digital identity platform.
In another measure to promote digital inclusion, the proposed budget seeks to abolish the existing Tk300 tax on mobile SIM cards, making telecommunications services more accessible to a wider segment of the population.
Technology sector representatives have welcomed the initiatives, describing them as a major step towards accelerating digital transformation, entrepreneurship and long-term economic growth.
