[🇧🇩] ICT Industry in Bangladesh

Source: https://en.wikipedia.org/wiki/Information_technology_in_Bangladesh

Information technology in Bangladesh

The information technology sector in Bangladesh had its beginnings in nuclear research during the 1960s. Over the next few decades, computer use increased at large Bangladeshi organizations, mostly with IBM mainframe computers. However, the sector only started to get substantial attention during the 1990s. Today the sector is still in a nascent stage, though it is showing potential for advancement. Nonetheless, Bangladesh IT/ITES industry has fared comparatively well by achieving US$1.3 billion export earnings in FY 2020-21 and holding US$1.4 billion equivalent market share in the local market contributing 0.76 per cent to the GDP creating more than 1 million employment opportunities so far amid Covid-19 havoc that suddenly shattered businesses last year. Consequently, riding on the successes of IT/ITES sector-supported export-led industries as well as pro-private sector and conducive policies pursued by Bangladesh Government, the country is now poised to become a Developing Country by 2026, as recommended by the United Nations Committee for Development Policy (UNCDP), besides, Bangladesh now seeks to transform itself into a knowledge-based and 4IR-driven cashless economy, aiming to become a developed country by 2041. The Bangladesh government has formulated a draft 'Made in Bangladesh– ICT Industry Strategy' aimed at turning Bangladesh into an ICT manufacturing hub, enhancing export of local products, attracting foreign investment and creating employment proposing to implement in three Notif-info terms— short term from 2021 to 2023, mid-term from 2021 to 2028 and long term from 2021 to 2031 for implementation of the 65 action plans.

History

The first computer in East Pakistan was an IBM mainframe 1620 series, installed in 1964 at the Dhaka center of the Pakistan Atomic Energy Commission (later the Bangladesh Atomic Energy Commission). Computer use increased in the following years, especially after the independence of Bangladesh in 1971; more-advanced IT equipment began to be set up in different educational, research and financial institutions. In 1979, a computer centre, later renamed Department of Computer Science & Engineering, was established at Bangladesh University of Engineering and Technology (BUET); the centre has been playing a pivotal role in Bangladeshi IT education since its inception. Through the introduction of personal computers, the use of computers witnessed a rapid increase in the late 1980s. In 1985, succeeding several individual initiatives, the first Bengali script in computers was invented, paving the way for more intense computer activities. In 1995, use of the Internet began and locally made software started to be exported.

In 1983, the Ministry of Science and Technology established a National Computer Committee to create the required policies. The committee was also responsible to carry out programs to expand and promote the efficacious use of the sector. In 1988, the committee was replaced by the National Computer Board. In 1990, the ministry reformed the board and reconstituted it as the Bangladesh Computer Council to monitor computer- and IT-related works in the country.

ICT industry

The ICT industry is a relatively new sector in the country's economy. Though it is yet to make tangible contributions in the national economy, it is an important growth industry. The Bangladesh Association of Software and Information Services (BASIS) was established in 1997 as the national trade body for software and IT service industry. Starting with only 17 member companies, by 2009 membership had grown to 326. In a study among Asian countries by Japan International Cooperation Agency in 2007–08, Bangladesh was ranked first in software and IT services competitiveness and third in competencies, after India and China. The World Bank, in a study conducted in 2008, projected triple digit growth for Bangladesh in IT services and software exports. Bangladesh was also listed as one of the top 30 Countries for Offshore Services in 2010–2011 by Gartner. The Internet penetration has also grown to 21.27 percent in 2012, up from 3.2 percent three years prior.

The Information and Communications Technology (ICT) sector of the country has maintained 57.21 percent export growth on an average over the last nine years since 2009. In the fiscal year (FY) 2016–17, Bangladesh ICT sector registered export earnings worth US$0.8 billion from the global market and US$1.54 billion from the domestic market span – thereby making around one percent contribution to the gross domestic product (GDP). The ICT sector has created around three hundred thousand job opportunities so far. ICT exports of the country are also projected to reach US$5 billion by 2025.

As the Internet usage increases, the government expects the IT sector to add 7.28 percent to GDP growth by 2021.

 

[Saif]

ICT entrepreneurs demand extension of tax exemptions

With tax exemptions for the information technology (IT) and IT-enabled services sector ending after this fiscal year, ICT entrepreneurs are demanding the continuation of such incentives for seven more years to help build a ‘Smart Bangladesh’.

www.thedailystar.net

ICT entrepreneurs demand extension of tax exemptions

With tax exemptions for the information technology (IT) and IT-enabled services sector ending after this fiscal year, ICT entrepreneurs are demanding the continuation of such incentives for seven more years to help build a 'Smart Bangladesh'.

Entrepreneurs fear that suspension of the privilege would be a crushing blow to the industry, which has experienced some headwinds in recent months due to a slump in global demand.

The global economic slowdown has resulted in a 4.4 percent drop in Bangladesh's IT exports, which reached $221.5 million in the first five months of the current fiscal year.

"The tax exemptions are crucial for local IT entrepreneurs as the sector has all the potential for export diversification," said Russell T Ahmed, president of the Bangladesh Association of Software and Information Services (BASIS).

"Most importantly, the tax exemption has played a role in building a digital Bangladesh and the local IT industry was the architect of that."

As the core vision of the government is to transform the country into a Smart Bangladesh, the continuation of the IT exemption is more important than ever before, he added.
He said BASIS had conveyed this message to senior government officials and hoped it would be considered.

To transform into a Smart Bangladesh, all sectors will be required to strategically embrace ICT. Its implementation is pivotal and the transformative potential of technology is undeniable, Ahmed added.

BASIS and other ICT trade bodies have already sent proposals to Finance Minister Abul Hassan Mahmood Ali, urging the government to extend tax exemptions till June 2031.

The government has set an aim to achieve its vision for a Smart Bangladesh by 2041. But if the tax exemption is not extended, it will seriously impact the overall goal since ICT will be the backbone of Smart Bangladesh, said Rashad Kabir, director of BASIS.

"It will ultimately increase the cost of ICT-related products and people will be reluctant to buy digital products eventually," he said.

"Over the last couple of years, we have heard a number of commitments regarding the extension of tax exemptions from a number of ministers of the present government," Kabir added.

"If it is not extended, it will be seriously frustrating news for the industry as there will be very little chance for further growth and the move would not match the manifesto of the government either."​

 

[Saif]

BTCL taking steps to restore.bd domain

All.bd domain services, which are operated by Bangladesh Telecommunications Company Ltd (BTCL), have been down since 8:40 am on Wednesday due to a technical glitch. “The technical team is now trying to solve the issue. Hopefully, the services will be restored as soon as possible,” read

thefinancialexpress.com.bd

BTCL taking steps to restore.bd domain
Published :​

Apr 03, 2024 19:35

Updated :​

Apr 03, 2024 20:05

All.bd domain services, which are operated by Bangladesh Telecommunications Company Ltd (BTCL), have been down since 8:40 am on Wednesday due to a technical glitch.

"The technical team is now trying to solve the issue. Hopefully, the services will be restored as soon as possible," reads a press release signed by Mir Mohammad Morshed, general manager of Public Relations and Publications at BTCL, reports UNB.

The BTCL also apologised for the disruption of many government and private websites under the.bd domain.

Another domain, .bangla is functioning properly, added the press release.​

 

[Saif]

Tax breaks crucial for big ICT investments

The revenue authority is facing calls to extend tax benefits for the information technology and information and communications technology-enabled services (IT-ITES) sector until 2030 in the upcoming national budget. This recommendation, included in a recent letter to the National Board of Revenue

thefinancialexpress.com.bd

Tax breaks crucial for big ICT investments
Suggestion comes as perks for the booming industry set to expire
DOULOT AKTER MALA
Published :​

Apr 08, 2024 00:44

Updated :​

Apr 08, 2024 00:44

The revenue authority is facing calls to extend tax benefits for the information technology and information and communications technology-enabled services (IT-ITES) sector until 2030 in the upcoming national budget.

This recommendation, included in a recent letter to the National Board of Revenue (NBR), is meant to encourage long-term investment in the country's fastest-growing economic sector.

Current tax concessions, both value-added tax (VAT) and income tax breaks, are set to expire on June 30, 2024.

In a demi-official letter to the NBR, State Minister for the Ministry of Post, Telecommunications and ICT Zunaid Ahmed Palak said continuing these tax benefits for a few more years is essential. This, he believes, will be crucial for achieving the government's goal of earning $5 billion annually in foreign currency.

The IT sector has witnessed a remarkable growth trajectory. Annual export earnings have surged from $26 million in 2007 to $1.9 billion in 2023, creating employment opportunities for two million people.

The letter mentioned that prudent fiscal policies have attracted $950 million in investments from startups alone over the past decade.
While the IT-ITES sector has benefited from tax breaks in phases over the years, the International Monetary Fund (IMF) recently recommended that the NBR phase out these exemptions and impose taxes on the sector.

According to senior tax officials, a decision on imposing new taxes on IT-ITES companies, including local digital device producers, is yet to be made. This delay provides the companies with the scope for building capacity and meeting export targets, while also protecting existing investments.

State Minister Palak said local manufacturers, except Walton, currently lack the capacity to produce cellular phones thanks to a wide gap in tax rates between assemblers and manufacturers.

He proposed a tiered VAT structure in the upcoming budget for FY2024-25. This would see the VAT rate for local mobile phone assemblers increase from the current 5 per cent and 7.5 per cent to 7.5 per cent and 10 per cent respectively, while maintaining the 2 per cent VAT rate for manufacturers.

Mr Palak also proposed waiving the existing 5 per cent VAT on locally produced mobile phones at the business stage.

He argued the uneven application of VAT at this stage creates discrimination and an uneven playing field, jeopardising the survival of tax-compliant businesses.

He also recommended tax benefits for imports of lithium-ion battery packs, uninterruptible power supply (UPS) units, electronic power supply systems (EPSS), power supply units (PSUs), solar hybrid inverters, monitors (over 22 inches), point-of-sale (POS) devices, access control devices, digital door locks, drones and similar items.

"To make local manufacturers competitive with foreign products, waiving VAT on raw materials procured from the local market is now essential," he wrote in the letter.

Currently, local manufacturers pay a 15 per cent VAT at the manufacturing stage and advance tax on imported raw materials.

In 2019, the revenue board began phasing out tax benefits for local mobile phone manufacturers, imposing a minimal tax after deeming the sector self-reliant.

Enamul Hafiz Latifee, a trade and policy development economist with the Bangladesh Economic Association (BEA) and a research fellow at the Bangladesh Association of Software and Information Services (BASIS), argued that the International Monetary Fund's (IMF) recommendation seems misaligned with Bangladesh's long-term strategic goals.

"Implementing the IMF's suggestion could lead to the NBR imposing a tax rate between 15 per cent and 25 per cent, which would significantly reduce the competitive edge of Bangladesh's ICT sector in both domestic and international markets," he said.

While this policy might initially generate a temporary boost in fiscal revenue by around 0.8 per cent, it contradicts the national ambition of transforming into a knowledge-driven, advanced economy by 2041, he added.

Extending the tax exemption on Software and IT Enabled Services (ITES) until June 30, 2031, would align with the government's vision of transitioning Bangladesh into an upper-middle-income nation by 2031, he said, adding this goal is unlikely to be achieved without fostering a competitive domestic ICT industry.

The current domestic demand for software and ITES in Bangladesh is estimated at $1.5 billion. An abrupt and untimely shift in fiscal policy could jeopardise the sustainability of the local ICT sector, potentially leading to a heavy reliance on imports in this area.

This scenario would exacerbate existing pressure on the country's foreign exchange reserves, possibly leading to annual outflows of $1.5 billion or more.

"The IMF's recommendation appears to lack a comprehensive impact analysis specific to the ICT sector," Mr Latifee added. "Moreover, it seems they have not engaged in consultative discussions with stakeholders from the private ICT sector. This oversight raises concerns about the methodology and inclusivity of the IMF's policy formulation process."

Meanwhile, Dr Shams Uddin Ahmed, a former income tax member, cautioned the government against offering tax benefits to the IT and ITES sectors on a wholesale basis.

He said that while phasing out these benefits entirely may be premature given the country's upcoming challenges related to graduating to a middle-income country, a more cautious approach is necessary.

"There have been concerns that some companies have been claiming undue tax benefits by misrepresenting themselves as IT or ITES businesses," Dr Ahmed said. "To prevent misuse and money laundering, tax benefits must be offered only after thorough scrutiny."​

 

[Saif]

Bangladesh's digital footprint in the age of social media saturation

In this era of technological advancement, Bangladesh is facing challenges in adapting to the digital landscape.

www.thedailystar.net

Bangladesh's digital footprint in the age of social media saturation

VISUAL: Canva

In the streets of Dhaka, amidst the hustle and bustle of everyday life, a silent transformation is taking place. It's not about turmoil or economic changes, but rather a shift in how people connect, communicate, and view the world. This change is driven by the use of social media platforms such as Facebook, Instagram, and Twitter which have become deeply ingrained in Bangladeshi society, shaping norms and behaviours in new ways.

The rapid growth of media in Bangladesh has been remarkable. With more than 40 million Facebook users and rising, the country has embraced these platforms enthusiastically, making it one of the most digitally connected countries in South Asia. From cities to distant areas smartphones have become ubiquitous tools that open doors to virtual realms where friendships are formed, the news is shared and identities are crafted.

However, despite its promise of connection and community, excessive social media usage has started to leave its mark on Bangladeshi society by moulding behaviours and perspectives in significant ways. One noticeable consequence of being overwhelmed by social media is the weakening of social ties and personal interactions. In a society where family and community bonds have always been highly valued, the rise of virtual connections is starting to overshadow face-to-face relationships.

Additionally, the constant flow of curated images and stories has nurtured a culture centred around comparison and competition, wherein one's worth is often judged by the number of likes and followers they have amassed. This has contributed to an increase in stress, feelings of sadness, and low self-confidence among individuals who are more susceptible to the pressures of social media. With a stream of content demanding their attention, many Bangladeshis struggle to disconnect from their devices, leading to a state of distraction and unease. Research has found a connection between social media usage and negative mental health consequences like heightened levels of depression, anxiety, and sleep problems. Moreover, the widespread circulation of misinformation and fake news on platforms like Facebook has eroded trust in sources of news and authority figures, resulting in a divided and fractured public conversation.

However, there are some positives of the spread of social media as well. Many people in Bangladesh are acknowledging the impacts of spending much time online and are taking measures to regain control over their online habits. Initiatives such as digital detox retreats and grassroots campaigns promoting digital literacy and responsible online conduct are emerging to encourage a mindful and balanced approach to technology.

Furthermore, social media platforms themselves are starting to address some of the negative aspects associated with their services by enforcing stricter content moderation and introducing features that promote well-being, such as encouraging users to take breaks and limit screen time.

The consequences of changes in behaviour driven by social media usage are intricate and varied. While these platforms have undeniably transformed how people connect and have amplified their voices, the uncontrolled usage of these online spaces has also led to unintended, negative outcomes.

In this era of technological advancement, Bangladesh is facing challenges in adapting to the digital landscape. Moving ahead will demand an equilibrium between the advantages and drawbacks of media. Encouraging a society to value literacy, be responsible in its online conduct, and be mindful can empower Bangladeshis to utilise social media for building relationships, fostering community spirit, and driving beneficial social transformations all while minimising its adverse impacts, on both society and individuals.​

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Dr Iqbal Ahmed is professor at the Department of Computer Science and Engineering in the University of Chittagong. ​

 

[Saif]

The need for cybersecurity education in Bangladeshi universities

Institutions must equip students with skills to steer through the cyber world's complexities.

www.thedailystar.net

The need for cybersecurity education in Bangladeshi universities

Inside MIST's Cyber Range.Photos: Javed / MIST Cyber Security Club

It's 2024 and in this digital age, cyber awareness should start from one's educational institution. Here, universities play a major role. These institutions must equip students with skills to steer through the cyber world's complexities.

However, a significant challenge is the lack of real-time exposure to cyber threats. The Military Institute of Science and Technology (MIST) addresses this with the "Cyber Range", a cutting-edge cybersecurity training facility, one of the first of its kind in Bangladesh. This facility, under the Center for Advanced Computing and Research (CACR), simulates attack scenarios, fostering hands-on experience critical for effective cybersecurity training.

One compelling reason for integrating cybersecurity education into the academic curriculum is the growing concern of cybercriminals targeting educational institutions. Universities store a vast amount of sensitive data, including student records, research findings, and intellectual property. Without adequate cybersecurity measures, these institutions become prime targets for malicious actors seeking to exploit vulnerabilities for financial gain or to compromise valuable information.

Moreover, as the job market becomes increasingly digitised, employers are placing a premium on candidates with cybersecurity skills. Hence, universities have the responsibility to bridge the gap between theoretical knowledge and practical application by offering courses and workshops that dig into advanced cybersecurity practices. This not only enhances the employability of graduates but also contributes to the nation's overall cybersecurity resilience.

Easin Arafat, the president of the MIST Cyber Security Club says, "Cyber threats are a global concern, and Bangladesh is not an exception to this. If we don't educate students about the various kinds of cyberattacks, like ransomware attack, phishing, malware attack, etc., our digital presence can't always be a secure one."

Moreover, "Capture the Flag" exercises – popularly known as CTFs – can be a fine way to polish your skills in cybersecurity. The Director and the Patron of MIST's CACR, Brig Gen Md Towhidul Islam takes pride in MIST having already hosted few of the biggest national and international events in the field of cybersecurity in Bangladesh namely through events like the "Leetcon" – one of the first int'l cybersecurity conferences in Bangladesh, Flag Hunt 2023 – a national CTF competition, FI and Critical Information Infrastructure cyber drill – a drill for cyber analysts and experts from around 30 esteemed banks of Bangladesh, and so on.

Brig Gen Md Towhidul says, "A vital component of combating the escalating risks in the digital sphere is cybersecurity education in institutions. Universities can provide students with the information and abilities necessary to confront the intricate problems of cybersecurity and make a positive impact on a more secure digital future by taking a full and proactive approach to education."

In conclusion, the urgency of incorporating cybersecurity education into Bangladeshi universities' academic fabric cannot be overstated. The digital age demands an educated and aware generation for a cyber-resilient future.

Fatima Ashraf is a Campus Ambassador for The Daily Star from Military Institute of Science & Technology (MIST).​