The Information and Communications Technology (ICT) sector in Bangladesh, which currently generates $2 billion in exports, faces several significant challenges that hinder its potential for further growth, according to Dr. Ahsan H. Mansur, Executive Director of the Policy Research Institute (PRI).
Speaking at a roundtable discussion jointly organized by the Bangladesh Association of Software and Information Services (BASIS) and PRI on Tuesday, Dr. Mansur highlighted key obstacles and proposed solutions to enhance the sector’s competitiveness on a global scale.
Dr. Mansur identified several critical challenges facing the ICT sector: tax burdens, high operational costs, limited access to finance, and deficits in digital literacy and infrastructure.
He emphasized the need for comprehensive government support to make the sector globally competitive, noting that the ICT industry holds immense potential for export growth.
One of the primary challenges discussed was the tax burden on ICT companies. Dr. Mansur urged the National Board of Revenue (NBR) to evaluate the sustainability of regular income tax rates for industry players in international competition. He suggested that more favorable tax policies could help local companies better compete on the global stage.
High operational costs and limited access to finance were also cited as significant barriers. Dr. Mansur called for measures to reduce these costs and improve access to financial resources, enabling more businesses to thrive and innovate within the sector.
The skills gap within the ICT sector was another major concern. Dr. Mansur highlighted that while the sector employs many individuals, there is a shortage of professionals with advanced skills.
He stressed the importance of increased IT education and restructuring the education system to produce high-quality graduates who meet industry demands.
A survey to understand the gap in digital literacy and high-quality graduates was proposed, with BASIS potentially playing a key role in addressing this issue.
Despite these challenges, Dr. Mansur acknowledged the achievements of the ICT sector and its contributions to various areas such as education, agriculture, and government services. He detailed how e-learning, smart farming, and e-governance platforms have positively impacted these sectors.
The ICT industry currently employs 300,000 individuals, with projections to increase to 500,000 by 2025, contributing 1.25% to the GDP and supporting a $2 billion local market.
BASIS President Russell T Ahmed called for tax and VAT waivers on human resource training to establish more training centers, enhance manpower, and expand businesses. He argued that such fiscal incentives would significantly boost the sector’s growth and capacity.
The discussion, moderated by BASIS Vice President (Administration) Syed Mohammad Kamal, included notable participants such as BASIS President Russell T Ahmed, Additional Director of Bangladesh Bank’s Payment Systems Department Mohammad Nazim Uddin, BASIS Vice President (Finance) Iqbal Ahmed Fakhrul Hasan, and BASIS Directors Mostafizur Rahman Sohel, Dr. Muhammad Risalat Siddique, Mir Shahrukh Islam, and Biplob Ghosh Rahul. Snehashish Barua, Director of SMAC Advisory Services Limited, was also in attendance.
