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[🇧🇩] ICT Industry in Bangladesh
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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.
 
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Nearly half of Bangladeshis remain offline: BBS

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Nearly half of the population of Bangladesh is still without internet access, according to the latest official data, a situation that IT professionals describe as disappointing when compared with neighbouring countries.

Despite more than a decade of rapid expansion in online and smartphone-based services, experts argue that high data costs, driven by heavy taxation, are the primary reason for the poor performance.

By the end of September this year, 48.9 percent of people aged five and above were direct internet users, according to a quarterly report by the state-run Bangladesh Bureau of Statistics (BBS).

In other words, the BBS report on Information and Communication Technology (ICT) usage means 51.1 percent of the population remained offline during the same period.

"The performance is actually worse than that of our neighbouring countries," said AKM Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services (Basis).

At the household level, just over half of homes -- about 56 percent -- had at least one internet user in the July-September period, according to the report released on Wednesday.

The BBS survey covered 61,632 households nationwide and is aimed at informing national ICT policy as well as international platforms such as the International Telecommunication Union and the SDG Tracker.

According to the findings, 50.4 percent of households were online in the July-September quarter, down from 55.1 percent at the end of fiscal year 2024-25.

This means that around half of citizens remain digitally excluded, even as online services increasingly shape access to education, healthcare, finance and government support.

Mashroor described the findings as "extremely disappointing for Bangladesh", adding that the high cost of data is the main barrier. In India, more than 70 percent of the population is online, while in Pakistan, the figure exceeds 60 percent.

"Internet prices in Bangladesh are way higher than in many other countries, largely because of the heavy tax burden," said the former Basis president.

Out of every Tk 100 spent on mobile data, he said that around Tk 50 goes to the government. Charges include a 20 percent supplementary duty, value-added tax (VAT), revenue sharing and spectrum-related costs.

"In total, more than half of the data price is absorbed by taxes and fees. And because data is so expensive, marginalised and low-income people are simply unable to use the internet, which keeps overall usage low."

According to Mashroor, usage will not improve unless smartphone penetration rises and data prices come down.

The survey found that 80.6 percent of people use mobile phones, while 56.5 percent own their own handsets.

Usage among men and women is almost equal, 81 percent for men and 79 percent for women. But handset ownership and internet access show a clear gender gap.

About 63 percent of men own a mobile phone compared with 53 percent of women. Internet use follows a similar pattern, with 51.2 percent of men online compared with 46.3 percent of women.

The BBS report indicates a steady rise in internet use in recent years, even with a slight decline in overall mobile phone ownership.

Internet usage rose from 38.9 percent in 2022 to 48.9 percent this year.

At the household level, however, technology access appears broader.

The survey shows that 99 percent of homes have at least one mobile phone, and 72.4 percent now own a smartphone.

Television is available in 59 percent of households, radio use has fallen to 15 percent, and only 9.1 percent of homes own a computer. Electricity coverage is almost universal, reaching 99 percent of households.

A clear urban-rural divide remains. Smartphone ownership is far higher in towns and cities, where 81 percent of households have at least one device, compared with 69 percent in rural areas.​
 
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Lowering data price to widen internet use

SYED FATTAHUL ALIM
Published :
Dec 21, 2025 23:47
Updated :
Dec 21, 2025 23:47

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The latest survey by the Bangladesh Bureau of Statistics (BBS) shows an impressive rate (98.9 per cent) of penetration of mobile phones at the household level in Bangladesh in the first quarter of the current fiscal year (2025-26). In comparison, the rate of Smartphone use is over 72 per cent. So far as the penetration of these digital devices among the population is concerned, we can say that the development is considerable. The ubiquitous presence of mobile phone sets among the people from all walks of life means that owning a communication device like mobile phone is no more a symbol of status as it was the case with the pre-digital-era analog land phones. From that point of view, the modern-day mobile phone service is more egalitarian than the pre-digital era Plain Old Telephone Service (POTS). However, more important than owning a mobile phone set is what percentage of the various services available from a mobile telephone its owner is capable of using. Though mobile phone penetration rate among the households is very high, only 8.0 per cent of them have computer skills. When it comes to full digital literacy, it was just over 6.0 per cent, so far as recent reports go. For instance, among the youths, even those from low-income backgrounds with little or no literacy at all, we see a tendency to possess rather expensive smartphone sets. But what do they do with those smartphone sets? As everyone knows, they use it mainly for idle chat with friends over the social media, or for simply videoing for the right or wrong purpose. So, though the high percentage of smartphones usage among the population may look very impressive from the commercial point of view, that is, rise in the figurer of mobile phone sales, still, it cannot be a measure of how those electronic communication devices are being used as part of increasing digital literacy among the population.

Here, digital literacy is not just about how to operate the devices including some of the software. On the contrary, to be fully digitally literate, the user should be able to search the required information, critically assess its credibility and see if it has any inherent bias towards or against any social segment, race or religion, age group, gender, etc. Also, a digitally literate person should be able to create digital content in the form of text or video and share it via email or social media. But being able to create content and share it through email or social media is not the sole criteria of a (properly) digitally literate person, since the user should also be able to protect data, maintain data privacy and behave responsibly online.

Evidently, such digital knowledge helps the user to find jobs, access online educational/research facilities, make use of various services available on the websites run by the government or private organisations. In sum, to be digitally literate means to be literate or educated in the old sense of the term. In fact, a smartphone in the hand of a modern-day youth is not just a toy for fun, but a digital window to the wide world of knowledge and skills. So, it is important that the owner of the mobile phone has the necessary skill to make optimum use of the device. Now the question is, what percentage of the youths buying the expensive smartphones are using the powerful digital device to enhance their knowledge and skill in various trades to improve their living standards? Unfortunately, the mobile phones, smart or otherwise, are not only being underutilised, they are often being abused. According to a report, in 2024, globally 70 per cent of the online fraud was committed through mobile platforms, while 83 per cent of the phishing sites (a fraudulent website that impersonates legitimate brands, banks or other valuable service providers to steal sensitive personal information/data such as password, credit card numbers, etc.) targeted mobile phone sets. However, there is no such statistics available for Bangladesh. Even so, it can be assumed that the percentage of mobile phones' use for criminal purpose or as phishing sites is considerable. Now with the introduction of AI chatbot like ChatGPT, which can be accessed online from the mobile platforms, the potential for positive as well as negative use of the device has increased exponentially. Whatever the case, Bangladesh cannot remain outside the global tide of the new technologies, their spread online and accessibility through mobile platforms. Against this backdrop, is Bangladesh duly prepared to embrace this new wave of digital technology available online?

The BBS survey findings as referred to in the foregoing hardly provide an encouraging picture in this regard. As the BBS reports for the first quarter of FY26 reveals, 50.4 per cent of the households were internet users. But compared with the internet usage at 55.1 per cent at the end of FY25, i.e, on June 2025, the (internet) usage during July-September period actually declined by 4.7 percentage points. Clearlly, according to this latest BBS survey, about half of the country's population is still digitally excluded. Worse yet, going by the same survey, the coverage of the internet service among the people is decreasing rather than increasing with the passage of time. While the government should look into this anomaly and address it, efforts should be there to increase the internet coverage among the people. In truth, Bangladesh is far behind its next-door neighbour in internet usage where the coverage rate is 70 per cent, while in Pakistan, the coverage is more than 60 per cent. According to some experts on software and information services, Bangladesh's position in comparison is disappointing. Unfortunately, it is the government's wrong policy about internet that is holding back the service's growth in the country. To be precise, here, the highly taxed data has made the internet service pricier than some of its neighbours. Taking the 20 per cent supplementary duty along with VAT, revenue sharing, spectrum-related costs, more than 50 per cent of the data cost is absorbed by the government. In other words, to expand internet service among all segments of the population, especially the low-income ones, the government needs to reduce data price. At the same time, the prices of smartphones have to be lowered so larger volumes of data as well as latest technologies could be made accessible to all segments of the population. That is how the public will be able to draw maximum benefits from the reported high penetration of mobile phones in the country.​
 
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Internet access still beyond reach for many worrying

THE latest Bureau of Statistics update puts the number of households with internet connections at 56.2 per cent, which suggests that 43.8 per cent of households are still excluded from internet connectivity. This paints a bleak picture, as the ICT Access and Use Survey 2025–26 considers a household to be using the internet only if at least one person in that household uses the internet. Whilst this is worrying in a governance system that is growing more dependent on the use of the internet, figures from previous year-wise surveys further suggest that the growth has been minimal. The Bureau of Statistics says that the number of households with at least one internet user was 55.1 per cent in the 2024–25 financial year, which is a slight improvement. The figure for the 2023–24 financial year was, however, 43.6 per cent. Data from the national statistical office further say that about 48.9 per cent of individuals aged five years and above are direct internet users in the July–September quarter of the ongoing financial year, which means that more than a half of the population is still without internet connectivity.

This has occurred despite rapid growth in the use of the internet and smartphone-based services over the past decade. Whilst this is worrying, as online platforms are increasingly shaping access to education, health care, finance and public services, such a poor situation points to weak digitisation and digitalisation that could hold back inclusiveness of a sort. The scenario is even more worrying in a regional context. In India, for instance, more than 70 per cent of the population is connected to the internet, while in Pakistan the figure exceeds 60 per cent. Stakeholders generally say that internet use has remained low primarily because of the high cost of data. A former Bangladesh Association of Software and Information Services president has said that data costs remain high because of value-added tax, other taxes, revenue sharing and spectrum-related costs, noting that the internet is still treated as a luxury good or service. All this may be true, but it is the end users who suffer. Besides, smartphone penetration in rural areas remains low. The survey also shows that only 9.1 per cent of households own computers, which are often shared among members of the household.

All this points to flaws in the digital policy framework, which should not plague a country where governance is rapidly going digital. Such a situation, if allowed to continue, will deepen the digital divide and create discrimination in society. The government should, therefore, urgently attend to the issues of internet use and access to smartphones and computers at the household level.​
 
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Modernising data protection laws

SYED FATTAHUL ALIM
Published :
Jan 11, 2026 23:34
Updated :
Jan 11, 2026 23:34

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Data are what a piece of information is made of. So, it is important that data on any subject are well-preserved and protected; and the information they generate is also well-preserved and protected. In this Digital Age, which started from the mid-20th century and is ongoing, protection of data is an issue of central concern for persons, organisations as well as the States. Since data and information are now easily accessible through computers, networks and the internet and its various platforms including the social media, they also run the risk of being changed and manipulated as easily as they can be accessed. In that case, unless the data are effectively protected, the information and the knowledge that go with them can become corrupted to the detriment of the interest of their users-persons, organisations or the States.

Against this backdrop, the government issued the Personal Data Protection Ordinance (PDPO) 2025 and the National Data Protection Ordinance (NDPO) 2025 in November last year (2025). The Personal Data Protection Ordinance (PDPO) 2025 was considered to be a landmark step to acknowledge the citizens' right to the ownership of their personal data as well as protection of their privacy. Since according to the ordinance, individuals are recognised as the rightful owners of their data, any entity willing to collect and use the data would be required to have the explicit consent of their owner. The law also establishes the frameworks for data protection and governance.

That the government could come up with these laws is undoubtedly a step forward towards digital governance. However, it has come under criticism from different concerned quarters. The common criticism is that the process of framing the laws lacked transparency as it did not follow consultations with different stakeholders and a public debate. The PDPO has been critiqued for its broad powers, vague definitions of, for instance, the term, 'cyber terrorism'. It paves the way for mass surveillance and, despite its good intention of protecting individuals' rights, it is feared that misuse of the law might curb public dissent, critics argue. The provisions also allow for extensive data collection and the power to intercept communications by the authorities including the police. Certain sections of the law have drawn the attention of legal experts who think it smacks of too much of state control. For instance, the section (3) of the NDMO states that its provisions take precedence over any other law, contract or instrument in matters relating to the storage, processing security and identification of persons, personal data and the overall management and interoperability of national data. The ordinance contrasts with similar digital laws of advanced systems of the West. The General Data Protection Regulation (GDPR) of the European Union (EU)/European Economic Area (EEA), for example, does not give supreme powers to the data protection law, but works under the Charter of Fundamental Rights. Or in other words, respect for private life and protection of personal data are considered as fundamental rights. Some critics, on the other hand, consider our data protection laws as outdated, restrictive and counterproductive as they risk constraining the country's digital economy. The data protection ordinances of Bangladesh, in their views, isolate the country from the global digital ecosystem. As a result, the laws are obstructive of not only investment, but also go against the welfare of the citizens. Especially, to those critics, the ordinances' data localisation mandates are too aggressive as they compel companies to store multiple categories of personal data within the national borders and any act of noncompliance with the provision risks being penalised. As such, those ordinances impose an impractical burden on the global service providers like the social media and the content platforms including Meta, Google and others. The Meta owns the popular social media platforms Facebook and Instagram. Google, on the other hand, owns the Youtube, which is a huge video-sharing platform. The data localisation mandate, therefore, might force the global social media companies to duplicate infrastructure, raise operational costs and provide low quality service to the users. Bangladesh cannot afford this as digital commerce using these social media platforms generate around US$1.5 billion in annual transactions. Moreover, this digital commerce creates job for around two hundred thousand young entrepreneurs. Obviously, the localisation provision of the data regulatory laws poses a potential risk of job loss for many youths engaged in e-commerce.

However, the good news is that the Advisory Council of the interim government has responded positively to the critics and on Thursday (January 8, 2026) approved the Personal Data Protection (Amendment) Ordinance 2026. The revised ordinance, particularly addressed concerns regarding mandatory data storage. Now, the requirement for technology companies to keep local copies of user data has been relaxed. Henceforth, the requirement (of keeping local copies) will be applicable only to such data as are deemed as 'critical infrastructure (CII)'. The other positive aspect of the revised data protection ordinance is that it has removed the provision of imprisonment for non-compliance, keeping financial penalties as the only form of punishment. With this amendment, the government hopes, the country will now be able to attract more investment in data and cloud-related services. Notably, cloud refers to remote data centres that provide on-demand computing services on the internet.

The personal data to still remain under restriction refer to those that might impact national security, public order, defence, critical infrastructure or an individual's fundamental rights and freedoms. The jurisdiction of the restriction may also include classified datasets, critical health, or security-related information, or any other personal data designated as 'restricted' by the authority or the government. Expectedly, the amendment to the data protection ordinance (PDPO2025), would at the same time help promote investment in digital commerce, facilitate cross-border data flow and enhance citizen rights which cover consent, access and deletion as well as protection of minors. Overall, the Personal Data Protection (Amendment) Ordinance 2026 promises to create a unified rights-based data governance framework. However, the challenges to the implementation of the data protection ordinance and the potential for the law's misuse remain. Since no law has ever been perfect at its inception, but improved through trial and error over the course of time, the present data law would also, it is hoped, attain perfection over time. But in the final analysis, whether a law is good or bad will depend on the goodwill of the political power who implements the law.​
 
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Cyber-resilient future: How to keep up with the evolving threat landscape

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Image: Mika Baumeister/ Unsplash

Something has quietly changed in Bangladesh’s digital economy over the past five years, and not everyone has noticed. The country that once dealt mainly with phishing emails and basic malware now faces the same cyber threats troubling organisations in London, Singapore and New York. In one sense, this is a sign of progress. Cybercriminals do not waste advanced attacks on unimportant targets. That Bangladesh’s financial services, telecoms networks, manufacturing supply chains and government platforms are now receiving serious attention from organised crime groups, hacktivists and state-sponsored actors reflects how far the country’s digital transformation has come.

But this shift also brings a new reality. The old security playbook of firewalls, antivirus software and occasional security audits is no longer enough.

Insights from Sophos show that attackers now remain hidden inside systems for a median of just two days, often enough time to steal data, disrupt operations or deploy ransomware. Two days is all it takes for a security incident to become a major crisis.

For Bangladeshi organisations still viewing cybersecurity as an IT department concern rather than a business priority, this timeline should be a wake-up call. Building true cyber resilience matters. The ability not only to prevent attacks, but also to adapt, respond and recover, requires focusing on five connected principles.

Understanding the threat landscape

Cyber threats today do not arrive at random. They follow patterns, reuse techniques, exploit known vulnerabilities and evolve in response to defensive measures. Organisations that stay informed about current attack methods and monitor threat intelligence gain a clear advantage. Those that only react after an incident has begun are always one step behind.

Look at threats in context

A security alert on its own means very little. What matters is whether it affects critical systems, sensitive data or essential services. Without a clear view of business priorities, regulatory obligations and supply chain exposure, security teams can become overwhelmed by alerts while missing the real risks. The strongest organisations connect security signals to business reality and focus on what truly matters.

Cybercriminals adapt constantly, and security strategies must evolve just as quickly. Tools and processes that worked last year may not work today. Resilient organisations can adjust policies, update defences and respond to new threats without slowing business operations.

Research repeatedly points to the same conclusion: a lack of skills or awareness plays a role in most successful attacks. Technology alone cannot compensate for undertrained staff, overstretched security teams, or decision-makers who do not understand cyber risk. Investing in human capability through training, expert support and clear decision-making is essential to long-term resilience.

Work on speed and agility

As cybercriminals increasingly use automation and artificial intelligence to move faster, slow responses become costly. The ability to detect threats early, investigate quickly and respond across systems such as endpoints, networks and cloud environments can determine whether an incident remains a manageable problem or becomes an existential crisis.

For Bangladesh, the path forward is clear, even if it is not easy. Cyber resilience is not achieved by buying technology alone. It requires intelligence, context, adaptability, skilled people and speed working together as a single strategy. Organisations that understand this will be better equipped to protect digital trust, support economic growth and meet the challenges ahead.

Attackers are already paying attention to Bangladesh. The real question is whether Bangladeshi organisations are paying the same attention in return.​
 

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