Govt targets 90% 5G coverage to boost jobs, freelancing

The government has unveiled a comprehensive telecommunications scheme, targeting 90% 5G coverage and broadband speeds of 100 Mbps to accelerate job creation, expand freelancing and outsourcing opportunities and raise the Information and Communication Technology (ICT) sector's contribution to the economy.

"To this end, a target has been set to ensure the rollout of 5G coverage to 90% of the population and to guarantee broadband speeds of 100 Mbps, involving all stakeholders including mobile operators and fixed broadband service providers," said Finance Minister Amir Khosru Mahmud Chowdhury while announcing the initiatives in his speech of national budget for Fiscal Year 2026-27 (FY27).

He said the targets are part of a comprehensive telecommunications reform intended to bring internet services up to global standards.

The finance minister said the government is establishing a National Fibre Bank to ensure high-speed and affordable internet services in remote and rural areas of the country.

The government's push for wider 5G coverage and faster broadband services is expected to benefit a growing internet user base as official figures showed that the country had 131.42 million internet subscribers in April 2026, of which 116.47 million were mobile internet users and 14.95 million were connected through ISP and PSTN services.

Special emphasis is being placed on leveraging the skills and innovative capacities of young people to promote startups, freelancing and digital entrepreneurship as part of the government's broader economic strategy.

The government has identified the ICT and Telecommunications sector as a thrust sector and set a target to increase its contribution to the country's Gross Domestic Product (GDP) from the current 1-2 percent to 10 percent within the next five years.

Highlighting the employment potential of the digital economy, Amir Khosru Mahmud Chowdhury said the government has set a target of creating 2 lakh new jobs annually in the technology sector. Through extensive training in freelancing and creative industries at the college and university levels, it also aims to generate another 8 lakh indirect employment opportunities.

To accelerate the growth of freelancing and outsourcing, the government has proposed extending tax exemptions currently available only for IT freelancing income to all categories of freelancing income.

"At present, tax exemption is available only for IT freelancing income. I propose extending this tax exemption to all categories of freelancing income," he said, noting "This will encourage freelancers to send their earnings through formal banking channels and bring such income into the country through legitimate means."

He also proposed making all income from content creation completely free from income tax. "I also propose making all income from content creation completely free from income tax," he said.

Content creators and freelancers will also enjoy full exemption from the existing 15 percent Value Added Tax (VAT) on their services.

To strengthen the startup ecosystem, registered startup enterprises will enjoy exemption from the 15 percent VAT on services, imported services and premises rental until June 30, 2035, while a zero percent turnover tax rate has also been proposed for startups and technology-based businesses.

The proposed FY27 budget includes a Tk 500 crore Startup Fund to encourage new entrepreneurs in the information technology sector, with particular focus on women entrepreneurs and young entrepreneurs.

"Considering the potential of the information technology sector, I propose an allocation of Tk 500 crore in the FY27 to encourage new entrepreneurs in this sector," said the finance minister, adding, "This fund will be used as a 'Startup Fund' to support the development of women entrepreneurs, women's advancement, and young entrepreneurs."

Recognising the importance of digital connectivity in expanding outsourcing opportunities beyond urban centres, the government is establishing the National Fibre Bank to ensure affordable high-speed internet access across the country.

As part of the broader connectivity drive, high-speed free internet services have already been introduced at railway stations and airports.

To improve the global competitiveness of Bangladeshi freelancers and outsourced service providers, the government is introducing a Smart Skill Bank and a verification programme to issue internationally recognised digital certificates to skilled workers.

In addition, 1,000 foreign expert trainers and 7,500 domestic trainers are being engaged to upgrade technical institutions and polytechnics and strengthen the country's skilled workforce.

As part of efforts to improve efficiency and transparency in digital services, implementation of the "One Citizen, One ID, One Digital Wallet" system is underway, enabling citizens to access public and private services through a single digital identity.

To support digital inclusion and expand access to telecommunications services, the government has also proposed complete withdrawal of the existing Tk 300 tax on mobile SIM cards.

"The budget has done away with innumerable barriers which will result in a boom in economic activity and the growth will be exponential. Never has such steps been conceived, proposed and made into law through the budget," said Engineer Taslima Akter, Vice President, Bangladesh Women in Technology while talking to BSS.

She congratulated Prime Minister Tarique Rahman and Finance Minister Amir Khosru Mahmud Chowdhury for the courage and the success is certain.