What this year’s budget means for the ICT sector

The proposed national budget for the fiscal year 2025–26, presented by Dr. Salehuddin Ahmed, Adviser at Ministry of Finance and Ministry of Science and Technology, on behalf of the Government of Bangladesh, lays out a wide-ranging plan for economic recovery, governance reform, and development across sectors. 

Among its most significant themes is the decisive prioritisation of technology - both in terms of investment in Information and Communication Technology (ICT) and scientific research, and the integration of digital tools and innovation to streamline governance, education, and public services. 

This fiscal plan allocates substantial resources to the ICT Division, Ministry of Science and Technology and other agencies tasked with developing digital infrastructure, nurturing tech talent and fostering start-ups. With an emphasis on expanding mobile financial services, improving e-governance and supporting research and development, the budget underscores the government's ambition to transform Bangladesh into a knowledge-based economy.

A deep dive of the budget speech by Adviser Salehuddin reveals a series of concrete commitments and perspective shifts intended to foster a youthful, innovative and inclusive Bangladesh. Here are some of the key takeaways when it comes to the tech side of budget for FY 2025-26:

Allocation and digital infrastructure

In FY 2025–26, the ICT Division's allocation is BDT 2,144 crore, up roughly BDT 140 crore from the preceding year. 

According to the budget speech by Adviser Salehuddin, "ICTD Digital Labs" have been installed in 5,000 schools and " ICTD School of the Future" rooms in 300 colleges to familiarise students with coding, robotics and other emerging technologies.

Under the Secondary and Higher Education Division, 62 projects are being implemented with an allocation of BDT 1,957 crore for educational infrastructure development and other initiatives, as per the Adviser.

Further investment will create ICT infrastructure, including necessary buildings and include classrooms, laboratories and incubation centres at universities including Dhaka University, BUET, and Jashore Science and Technology University. These measures are intended to equip a new generation of learners with the skills to participate in an increasingly digital economy.

Digital economy

A key pillar of the budget focuses on establishing a cashless society and strengthening e-governance. As of January 2025, Bangladesh has 239.3 million (approximately 23.93 crore) registered mobile financial service (MFS) accounts, of which around 42 per cent are held by women. The budget builds on this foundation by supporting the expansion of MFS for remittances, bill payments and government disbursements. 

It also extends the "A-Challan" e-payment system, which now connects 61 commercial banks, enabling citizens to pay taxes and fees online via internet banking, debit cards and mobile financial services. 

Notably, the iBAS++ electronic funds transfer (EFT) scheme already ensures that salaries for 1.4 million government employees and social welfare payments to beneficiaries are credited directly to bank accounts. A draft "e-Money Regulation" will underpin this digital push, promoting a secure and competitive environment for fintech and mobile wallet providers.

Easy investment initiatives and e-governance

Under the National Board of Revenue's (NBRs) Bangladesh Single Window (BSW) platform and a One-Stop Service (OSS) portal managed by the Bangladesh Investment Authority (BIDA), foreign and domestic businesses can apply for licences and approvals online. By reducing paperwork and improving transparency, these initiatives aim to attract further investment into the ICT sector and related industries. 

The One Stop Service (OSS) portal currently provides a total of 134 services from 43 organisations. Steps have been taken to map all the investment services of the country across the sectors and include them in the OSS, as per Adviser Salehuddin's speech.

Education and skills hubs

Recognising that human capital is vital to any digital transformation, the budget devotes resources to technical training and capacity building. Alongside the expansion of computer labs, 36,020 teachers will continue to receive training in "ICT in Education, Literacy, Troubleshooting and Maintenance."

In rural areas, "Upazila Service and Information Technology Training Centres" will be created in 491 upazilas, providing training for young people. To promote freelancing as a source of employment, training has already begun for 28,800 "educated and job-seeking youths" in 48 districts, according to the speech by Adviser Salehuddin.

Proposal to create a 100 crore fund

Considering the potential of the IT sector and encouraging new entrepreneurs in this sector, I propose to allocate Tk 100 crore as start-up fund in the next fiscal year, said Adviser Salehuddin.

This is complemented by the proposal of an additional BDT 100 crore fund for the young entrepreneurs. "This is the first time such a fund is going to be created," the adviser added.

Playing to Bangladesh's demographic advantage, the budget also places a strong emphasis on youth empowerment. In his speech, the adviser said, "To involve the youth more deeply in the process of development of the country, I propose to allocate Tk 100 crore for the celebration of 'Tarunyer Utshob (Youth Festival)' in the next fiscal year."

While loan ceilings for trained youths were doubled to a maximum of Tk 200,000, and to Tk 500,000 for "successful young entrepreneurs." Projects will provide training and credit to 9 lakh youths by 2028, including self-employment generating projects to support families affected by the July Mass Uprising. 

Moreover, the budget highlights MoU with NASA under the Artemis programme which was signed in Bangladesh Investment Summit 2025, giving Bangladeshi students an opportunity to collaborate in space exploration efforts with 54 other countries. By linking young talent to global space exploration efforts, the government hopes to inspire further interest in STEM (science, technology, engineering and mathematics) careers and advanced research.

Science and research funding

In FY 2024–25, the budget had already awarded research grants of approximately Tk 16.66 crore to 492 university projects, and provided fellowships to 1,500 researchers. 

For FY 2025–26, the government has earmarked Tk 200 crore specifically for research on marine resources and the blue economy, as well as for fundamental science studies. 

Energy, environment and technology Initiatives

Officials are finalising a revised Renewable Energy Policy, with the target that by 2040, 30 percent of electricity will be generated from renewable sources such as solar, wind and bio-energy. 

Under an ongoing Integrated Power Sector Master Plan, the government aims to add 3,400 MW of clean energy capacity by 2028. To increase domestic energy security, Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) will undertake exploration and production programmes, including 270 km of geological surveys and over 700 km of seismic mapping in both 2-D and 3-D from FY 2025–26 to FY 2027–28. Additionally, BAPEX plans to drill 69 new wells and refurbish 31 existing wells using its own rigs, a move intended to reduce reliance on imported fuel and control energy prices.

In the transport of petroleum products, the budget supports a new Vehicle Tracking System for 2,465 fuel oil tank lorries, employing Smart Fuel Distribution Monitoring System (SFDMS) technology which aims to enhance transparency, minimise theft and ensure safe delivery of fuel across the country, mentioned Adviser Salehuddin in his budget speech.

Tech in environment and climate change also received significant attention as a BDT 100 crore allocation to the Bangladesh Climate Change Trust Fund will underwrite digital monitoring of all approved climate projects, while initiatives to reduce single-use plastic and expand afforestation are also financed. 

By harnessing data-driven systems for both energy logistics and environmental protection, the budget reflects a broader vision of technology as a tool for sustainable development.

Final thoughts

Taken together, the FY 2025–26 budget provides a multi-pronged strategy to establish Bangladesh as a digital economy. It combines investments in hard infrastructure like computer labs, exploration equipment, renewable energy projects along with support for soft infrastructure such as teacher training, research fellowships, digital skills centres and start-up funds. 

By prioritising in tech related topics like mobile financial services, e-governance platforms, science research and renewable energy, the government seeks to reduce dependency on imports, foster domestic innovation, and create employment for youth.

Whether the planned funds and initiatives translate into concrete outcomes will depend on implementation in the coming year. However, the budget speech by Adviser Salehuddin Ahmed makes clear that technology and innovation are now officially high on Bangladesh's agenda, an important signal to citizens and investors alike.