Budget 2026-27: Govt prioritises medical device industry to reduce import dependence

The government has announced a major push to develop Bangladesh’s medical equipment and device manufacturing sector, aiming to strengthen healthcare security, reduce reliance on imports and create a new source of export earnings.

Presenting the proposed national budget for FY2026-27 in Parliament on Thursday, Finance Minister Amir Khosru Mahmud Chowdhury said the country currently spends a significant amount of foreign currency on importing medical equipment despite having the capacity to produce many of these products locally.

He said Bangladesh has strong potential to manufacture a wide range of medical devices, including syringes, blood pressure monitors, pulse oximeters, ventilators, X-ray and ECG machines, hospital beds, diagnostic kits and laboratory equipment.

To encourage investment in the sector, the government plans to offer special tax and fiscal incentives for export-oriented manufacturers, in addition to existing customs and duty benefits.

The budget proposal also includes measures to improve industry infrastructure and regulatory support. Internationally accredited testing and certification laboratories will be established, while an online licensing system will be introduced to simplify approval procedures and reduce administrative barriers.

As part of the initiative, the government intends to set up a dedicated medical technology park and facilitate access to low-interest financing for entrepreneurs and investors interested in the sector.

The finance minister said Bangladesh will also focus on strengthening biomedical engineering education, research and innovation to support the growth of a modern medical technology industry.

Officials hope the sector will emerge as a new export-oriented industry, helping improve healthcare services, create employment opportunities and increase foreign exchange earnings over the long term.

The budget also proposes a Tk 69,409 crore allocation for the Ministry of Health and Family Welfare in FY2026-27, equivalent to 1.02 percent of the country‍‍`s GDP.

In comparison, the revised health sector allocation for FY2025-26 stood at Tk 35,477 crore, representing 0.58 percent of GDP.