Procure more domestic software to boost ICT sector: expert

At least 10 percent of the internal development budgets of all ministries and their affiliated bodies should be dedicated to the procurement of software and IT-enabled services (ITES) from domestic IT companies, according to Ahsan H Mansur, executive director at the Policy Research Institute of Bangladesh.

Limited procurement of domestic software by the government restricts the growth and international recognition of local companies, the economist said.

He said joint ventures could be formed to implement big IT projects undertaken by the government, bolstering the survival and recognition of local software companies.

Mansur made the remarks while presenting the keynote at a roundtable, titled "Importance of ICT for Economic Growth in Bangladesh", organised by the Bangladesh Association of Software and Information Services (BASIS) at its auditorium in Dhaka.

The ICT sector has emerged as the nucleus of industrial manufacturing and exporting, agricultural progression, and service sectors' uninterrupted quality delivery processes, he said.

"ICT, as a cross-cutting sector, is the cornerstone upon which the efficiency and productivity of all other sectors depend. As the nucleus of every industry, ICT enables streamlined operations, enhanced data management, and innovative solutions that drive economic growth and competitiveness."

Speaking about the challenges facing the ICT sector in Bangladesh, Mansur highlighted the lack of digital literacy and infrastructure.

He said there is a significant gap in digital literacy within the population, which hampers the effective utilisation of ICT tools and services.

The social and economic return from public investment in this area would be huge and would help address the problem of unemployment among the educated youth.

Such a measure would also increase incomes through freelance and inflow remittances and increase household income across the country in defiance of the rural-urban bias.

On the other hand, inadequate ICT infrastructure, particularly in rural areas, limits the reach and impact of digital services as it leads to unstable internet connections and unreliable power supply.

Reducing this would help bridge the rural-urban digital divide.

To bolster women's entrepreneurship in the ICT sector, he proposed to form a Tk 300 crore fund through which loans can be offered at modest interest rates of 2-5 percent.

Mansur also urged the government, finance ministry and Bangladesh Bank to look at the ICT sector in a new light.

"ICT comes with no tangible assets. Valuation of its intangible assets requires a different approach. And I think Bangladesh Bank needs to guide our commercial banks and financial institutions to come forward and help the ICT sector."

In addition, he said the central bank and government can allocate resources in the form of a revolving fund.

He also opined that Bangladesh should develop the capacity to produce 1 lakh highly-skilled ICT graduates every year.

"Prepare a roadmap for that, select the universities, review their curriculum and make it of global standards. Try to bring out the best Bangladeshi students through that system."

Russell T Ahmed, president of the BASIS, said developing skilled human resources is the most important step towards growing the sector.

The only raw materials of the ICT industry are human resources. Unfortunately, we must pay 27.5 percent tax and VAT for any training we avail from an ICT organisation.

"If that is withdrawn, we will be able to contribute more and Bangladeshi IT companies will perform wonders," he added.

M Rashidul Hasan, BASIS senior vice-president, and Syed Mohammad Kamal, vice-president, were also present.