Bangladesh's BNP Pledges Economic Deregulation to Boost Tech and Export Sectors

The Bangladesh Nationalist Party (BNP), positioned to win Thursday's national election, has pledged comprehensive economic deregulation and liberalized trade policies to stimulate foreign investment and export growth. Amir Khasru Mahmud Chowdhury, BNP standing committee member and former commerce minister, confirmed the party would implement "total deregulation" and "totally liberalized" investment frameworks if elected, with targeted support for export-oriented sectors including technology.

Bangladesh's $460 billion economy relies heavily on ready-made garment exports, which generated $42 billion in FY2025. However, technology exports reached just $2.1 billion despite the sector's 18% annual growth rate. Regulatory hurdles currently rank Bangladesh 129th in the World Bank's Ease of Doing Business Index, with tech startups facing an average 49-day wait for business registration and restrictions on foreign capital flows.

The BNP's deregulation strategy targets three key areas: eliminating redundant licensing requirements for tech companies, removing equity caps for foreign investors in digital infrastructure projects, and streamlining customs processes for electronics imports. Such measures could reduce operational setup times by up to 70% according to World Bank benchmarks from similar reforms in Vietnam and India.

For Bangladesh's technology sector—which employs over 1 million workers—these policies could catalyze venture capital investment, currently stagnant at $150 million annually. Comparative analysis shows deregulation in comparable markets typically increases tech FDI by 30-40% within two years. The BNP specifically highlighted plans for special economic zones offering tax holidays for semiconductor manufacturing and software development, aiming to position Bangladesh as a competitive alternative to Vietnam's $15 billion electronics export industry.

Strategic implications extend beyond immediate economic gains. Reduced regulatory friction could accelerate Bangladesh's transition from garment manufacturing toward higher-value tech production, aligning with its Digital Bangladesh 2041 vision. However, execution risks remain, including potential short-term revenue losses from tax incentives and the need for parallel judicial reforms to enforce intellectual property rights—a persistent concern for tech investors according to the Global Innovation Index.

Market indicators already reflect cautious optimism, with the Dhaka Stock Exchange's technology index rising 3.2% following the announcement. If implemented effectively, these policies could add 1.5 percentage points to Bangladesh's GDP growth by 2028 while diversifying its export portfolio beyond textiles, where it holds an 83% market share.