Bangladesh has announced a broad package of investments aimed at accelerating digital transformation, strengthening innovation ecosystems, and expanding technology-led economic growth, as part of the national budget for fiscal year 2026-27.
The budget outlines significant allocations across ICT, telecommunications, science and technology, entrepreneurship, research, and innovation, reflecting the government’s ambition to increase the digital economy’s contribution to GDP from the current 1-2% to 10% within the next five years.
Presenting the budget in parliament, Finance Minister Amir Khosru Mahmud Chowdhury positioned technology, innovation, and entrepreneurship as key pillars of Bangladesh’s long-term economic development strategy.
Under the proposed budget, the Information and Communication Technology Division will receive Tk 2,049 crore, while the Posts and Telecommunications Division has been allocated Tk 2,141 crore to support connectivity infrastructure, digital services, and telecommunications development.
The largest technology-related allocation is directed toward science and innovation, with Tk 18,115 crore proposed for the Ministry of Science and Technology. The funding is intended to support the development of a technology-driven workforce, strengthen research capabilities, and advance Bangladesh’s transition toward a knowledge-based economy.
A notable feature of the budget is the creation of a Tk 500 crore Startup Fund, designed to encourage entrepreneurship within the technology sector. The initiative will focus particularly on supporting young founders and women entrepreneurs, reflecting growing recognition of startups as drivers of innovation, employment, and economic diversification.
The government has also earmarked Tk 200 crore for research, innovation, and Blue Economy development, allocating Tk 100 crore to each area. These investments are intended to support technological advancement while exploring new opportunities linked to Bangladesh’s maritime resources and sustainable economic development.
Creative industries have also received attention, with an initial Tk 300 crore allocation proposed for creative economy development. An additional Tk 500 crore is expected to be mobilized through Bangladesh Bank’s Corporate Social Responsibility (CSR) framework, potentially expanding support for creative and innovation-driven sectors.
Support for entrepreneurship extends beyond the technology industry. The budget includes Tk 2,000 crore in SME financing through institutions such as IDCOL, BIFFL, and the SME Foundation to provide accessible funding for small businesses and emerging enterprises.
Meanwhile, Bangladesh Bank has announced a broader Tk 60,000 crore Stimulus Package 2026, including Tk 5,000 crore dedicated to cottage, micro, small, and medium-sized enterprises (CMSMEs) and Tk 3,000 crore for export diversification initiatives.
A central objective of the strategy is job creation. The government has set a target of generating 200,000 new technology-sector jobs annually, positioning digital industries as a key source of employment for Bangladesh’s growing youth population.
Collectively, the measures form part of a wider effort to strengthen digital infrastructure, encourage innovation, develop technology talent, and expand the role of knowledge-based industries in the national economy.
Editor’s Note
Bangladesh’s latest budget signals an important evolution in the country’s economic strategy: digital transformation is moving from a supporting policy objective to a core growth pillar.
The target of increasing the digital economy’s contribution to GDP from 1-2% to 10% within five years is ambitious, but it reflects a broader reality seen across emerging markets. Future economic competitiveness will increasingly depend on a country’s ability to generate value through technology, innovation, and digital services rather than relying solely on traditional industries.
What stands out in the budget is the attempt to build a complete digital economy ecosystem rather than focusing on a single area. Investments span telecommunications, startup funding, research, innovation, SME financing, workforce development, and creative industries. This suggests policymakers recognize that successful digital economies require interconnected systems rather than isolated initiatives.
The Tk 500 crore Startup Fund is particularly noteworthy. While infrastructure remains important, long-term digital growth depends on the ability to create innovative companies capable of developing products, generating employment, and competing internationally. Access to early-stage funding remains one of the biggest challenges facing entrepreneurs across South Asia, making targeted startup support a potentially high-impact intervention.
The emphasis on technology employment is equally significant. The commitment to create 200,000 tech-sector jobs annually aligns with global demand for software development, AI, cybersecurity, cloud services, and digital operations talent. Bangladesh is increasingly competing not only as a manufacturing economy but also as a supplier of digital skills and technology services.
The inclusion of research, innovation, and Blue Economy investments further demonstrates an effort to diversify future growth opportunities. Countries that successfully combine technology development with sector-specific innovation often create more resilient and sustainable economic models.
The broader implication is that Bangladesh is positioning itself for the next phase of economic development, one where connectivity, innovation, entrepreneurship, and digital skills become primary drivers of growth. The challenge now will be execution. If these investments translate into stronger startups, higher-value exports, improved digital infrastructure, and a skilled workforce, the country could significantly strengthen its position within South Asia’s emerging digital economy landscape.
