Bangladesh's transformation into a technology-driven economy did not happen by accident. A series of deliberate government policies, investments, and institutional reforms — collectively known as the "Digital Bangladesh" initiative — have created the enabling environment for the country's IT sector to grow from negligible exports in 2000 to over $2 billion today. This article examines the specific policies and their measurable impact on the technology landscape.

The Digital Bangladesh Vision

The "Digital Bangladesh" vision was formally articulated in 2008 as part of the ruling party's election manifesto and subsequently embedded into national development strategy. The vision rested on four pillars: human resource development, connecting citizens through technology, digital government, and promoting the IT industry. Unlike many political technology promises, this initiative was backed by institutional commitment and sustained funding through the ICT Division — a dedicated ministry-level body reporting directly to the Prime Minister's Office.

Tax Exemptions for IT Exports

The single most impactful policy has been the complete exemption of IT and IT-enabled service (ITES) export revenues from corporate income tax. Introduced initially in 2008 and repeatedly extended (currently through June 2027), this policy means that software companies earning revenue from international clients pay zero corporate tax on that income. For context, the standard corporate tax rate in Bangladesh is 27.5% for non-listed companies.

This incentive has directly influenced companies like Nexis Limited to invest in export-oriented product development, creating platforms such as Ultimate HRM and Bondorix for international markets while maintaining competitive pricing.

Additional Fiscal Incentives

  • Reduced import duties (1-5%) on computer hardware and components for registered IT companies
  • VAT exemptions on software and IT service revenue
  • Accelerated depreciation allowances for IT infrastructure investments
  • Tax holidays for companies operating within designated hi-tech parks

Hi-Tech Park Development

The Bangladesh Hi-Tech Park Authority (BHTPA), established under the ICT Division, is responsible for developing technology-focused infrastructure across the country. The initiative aims to decentralize the IT industry beyond Dhaka by building purpose-built technology parks in multiple districts.

Key hi-tech parks in operation or development include:

  • Janata Tower Software Technology Park, Dhaka: The first and most established IT park, housing numerous software companies in the capital.
  • Bangabandhu Hi-Tech City, Kaliakoir: A 232-acre campus approximately 40 km north of Dhaka, featuring dedicated buildings for IT companies, residential facilities, and shared infrastructure.
  • Sheikh Hasina Software Technology Park, Jessore: One of the early decentralized parks, successfully attracting IT companies to operate outside Dhaka.
  • Sylhet IT Park: Serving the northeastern region with its significant diaspora connections to the UK.

Companies operating within these parks receive subsidized rent (as low as BDT 400-600 per square foot annually), guaranteed power supply with backup, high-speed internet connectivity, and streamlined regulatory support.

Startup Bangladesh and Innovation Funding

Startup Bangladesh Limited, a venture capital company fully owned by the ICT Division, was established with an initial fund of BDT 500 crore (approximately $50 million) to invest in early-stage technology startups. The fund targets pre-seed, seed, and Series A investments in Bangladeshi startups, focusing on sectors like fintech, healthtech, edtech, agritech, and SaaS.

Additionally, the iDEA (Innovation Design and Entrepreneurship Academy) project, also under the ICT Division, provides incubation support, mentoring, and small grants to early-stage entrepreneurs.

Skills Development Programs

Learning and Earning Development Project (LEDP)

The LEDP has trained over 100,000 young people in IT-related skills including web development, mobile app development, graphic design, and digital marketing. The program specifically targets university graduates and provides stipends during the training period.

Sheikh Kamal IT Training and Incubation Centers

Established in 64 districts (every district in Bangladesh), these centers provide basic to intermediate IT training in areas where private training options are unavailable. They serve as feeders for the national IT talent pipeline, particularly in rural areas.

Digital Infrastructure: National Broadband

The government-built Info-Sarker network connects all 64 district headquarters and 492 sub-district (Upazila) offices through fiber optic connectivity. This backbone network, combined with the expansion of 4G mobile coverage to 98%+ of the population, has created the digital infrastructure foundation necessary for a distributed technology workforce.

Impact Assessment

The cumulative impact of these policies is measurable:

  • IT industry employment has grown from approximately 50,000 in 2010 to over 300,000 in 2025
  • Number of registered IT companies has increased from ~800 to ~4,500
  • Software exports have grown from $200 million to $2+ billion
  • Bangladesh ranks #2 globally for freelance workforce participation

The policy environment remains favorable for the foreseeable future, and companies like Nexis Limited continue to benefit from this ecosystem as they scale their product portfolio and service offerings for both domestic and international markets.