ICT sector: Different figures over actual export revenue

As per the government version the country’s export income in information and communication technology (ICT) sector has reached USD 2 billion while the businessmen of the sector maintain that the amount can at best be USD 1.5 billion.

However, the government organisations that keep track of the export income said the sector’s income is not even USD 1 billion.

Zunaid Ahmed Palak, the state minister for post, telecommunication and ICT has been maintaining the export income in the sector to be around USD 2 billion.

He also expects the amount will reach USD 5 billion in the next five years.

Asked about the information of ICT sector’s export income, Palak on Sunday told Prothom Alo that this estimation is based on data from Bangladesh Bank, and information of hardware and freelancing sectors.

Besides, some companies in the Chattogram Export Processing Zone (EPZ) export electronic items.

Some stakeholders of the sector say that the amount would actually be USD 1 billion more, the state minister said adding there are some unofficial exports in the sector.

Palak also states that he gives the estimation of USD 2 billion taking responsibility.

Bangladesh Bank and Export Promotion Bureau (EPB) mainly serve the information of export of goods and services. Service sector makes more exports in the ICT sector.

According to the Bangladesh Bank, the amount of export in telecommunication, computer and information service was USD 531.8 million between July-April in the fiscal year of 2023-24. This is 5.2 per cent less than the corresponding period of the last fiscal year.

Meanwhile,  ICT services exports were USD 477 million from July to March of the same fiscal year, according to EPB data.

This amount is USD 6.43 million less than the corresponding period of the previous fiscal year.

According to World Bank data, the ICT sector accounts for 10 per cent of all services exported from Bangladesh in 2023. In the case of India it is 48.2 per cent, 36.2 per cent in Pakistan and 16.9 per cent in Sri Lanka.

Stakeholders say that 80 per cent of the country's ICT sector exports are service-based. And the export of this service is half of one billion dollars. In total, ICT sector exports will be less than a billion dollars.

The exports have been declining for two years. As a result, there are questions as to whether the export target of five billion dollars is achievable in the current situation.

Rasel T Ahmed, president of Bangladesh Association of Software and Information Services (BASIS), thinks that the export of the ICT sector will be about USD 1.5 billion dollars.

He told Prothom Alo that many information of this sector is not added up.

ICT is considered as the most promising sector after the apparel industry but there has been no progress in the last two years, Ahmed said adding expected growth could not be achieved.

The dream of five billion dollar exports will not be achieved this way, he noted, rather proper planning is required for it.

There is no specific data on the number of freelancers in the ICT sector. A top freelancer of the country, on condition of anonymity, told Prothom Alo that none can correctly tell the export amount in the sector. The number of Bangladeshis freelancers registered with various freelancing platforms will be around Tk 600,000 to Tk 700,000. But the actual number of freelancers is around 150,000.

Persons connected with BASIS said the export amount of freelancers in the country can be between USD 200 and 250 million. However, the president of Bangladesh Freelancer Development Society (BFDS) Tanjiba Rahman told Prothom Alo that the amount would be USD 300.

She also thinks that the export of the ICT sector will be USD 2 billion. Apart from services, the ICT sector has various other products. The World Bank does not have any data on Bangladesh’s exports of ICT products after 2015.

UN Trade and Development (UNCTAD) gives a list of products that are considered as ICT products. The list includes products such as computer and peripheral equipment, communication equipment, consumer electronic equipment (sound recording, microphone, camera, television camera, headphone, video game equipment, radio broadcasting equipment), electric components and semiconductor media etc.

There is no separate information available for ICT products in Bangladesh's export sector. However, Bangladesh Bank's 2022-23 financial year export earnings report mentions engineering products' export amount would be USD 585.85 million. According to the EPB data, the amount would be USD 479.96 million between July and May in 2023-24 fiscal year.

EPB's list of engineering products includes iron steel, copper ware, stainless steel ware, engineering equipment, electric products, bicycle and other products. None of Bangladesh's engineering products except for electric equipment fall under the category of UNCTAD's definition of ICT products. However, if the total export of engineering products and ICT services sector is calculated, it is more than a billion dollars.

BASIS’ former president and Bdjobs’ chief executive officer Fahim Mashrur said electric products such as TV-fridge should not be considered as ICT goods. He thinks the ICT sector’s export amount is less than USD 1 billion.

He added that different activities are taking place in the ICT sector in scattered ways but the impact of these are not so visible. The government has to set the target and set up at least 150 big companies.

*This report, originally published in Prothom Alo print and online editions, has been rewritten in English by Galib Ashraf