Absent of software regulation and regulator in Bangladesh: Scope and challenges for future tech industry and billion-dollar revenue loss of Bangladesh

Bangladesh’s software industry has emerged as one of the fastest-growing contributors to the digital economy, supported by an increasingly tech-savvy youth population and global outsourcing opportunities. However, unlike its neighbors and competitors, Bangladesh lacks a dedicated software regulator and comprehensive regulatory framework. This vacuum has led to significant risks including revenue leakages, weak consumer protection, unmonitored exports, and vulnerability to cyber threats. The absence of a clear governance structure not only hinders investor confidence but also undermines the country’s long-term ambition to transform into a “Smart Bangladesh.” By comparing Bangladesh with India, Singapore, and the European Union, this paper demonstrates how the absence of regulation has already cost the nation billions in untapped revenues and global market share. It proposes the creation of a Bangladesh Software Regulatory Authority (BSRA), drafting of a Software Act, integration with international standards, implementation of revenue monitoring systems, and adoption of a regulatory sandbox for innovation. The study concludes that without urgent reforms, Bangladesh risks losing its competitive advantage in the global technology race.