Healthcare Sector & Medical Equipment Industry – FY 2025–2026

Prepared by: PROMIXCO Group | Sector: Medical Equipment & Devices

Executive Summary

As a pioneer in Bangladesh’s medical equipment and devices manufacturing sector, PROMIXCO Group recognizes the strategic importance of the FY 2025–26 National Budget. This document highlights critical budget expectations, sector-specific challenges, and strategic recommendations. The budget is poised to significantly impact healthcare delivery and local industrial growth, particularly through increased operational expenditure and anticipated tax reliefs.

Anticipated Healthcare Budget – At a Glance

Based on early reports, the government is expected to allocate approximately Tk 434.83 billion to the healthcare sector, a 5% increase over FY 2024–25. A noticeable shift in allocation prioritizes operational expenditure over development, emphasizing service continuity and facility utilization.

Category	FY 2024–25 (Tk Billion)	FY 2025–26 (Tk Billion)	% Change
Total Health Budget	414.08	434.83	+5.00%
Development Allocation	110.24	95.60	-13.30%
Operational Expenditure	203.92	249.80	+22.44%

Visual Summary

The visuals below illustrate budget allocation breakdown and the disparity in health expenditure burdens.

Figure 1: Health Budget Distribution (FY 2025–26)

Figure 2: Out-of-Pocket Health Expenditure Comparison – Bangladesh vs. Global Average

Policy Expectations for the Industry

– Expand the duty-free list for raw materials and core components of medical devices.
– Remove Advance Tax (AT) and Advance Income Tax (AIT) on imported capital machinery.
– Introduce accelerated depreciation allowances to offset currency devaluation impacts.
– Strengthen public-private partnership frameworks to encourage local production of advanced medical technologies.

Systemic Challenges & Recommendations

– Address critical staffing shortages across hospitals and clinics.
– Offer fiscal incentives for domestic medical technology R&D.
– Reduce out-of-pocket healthcare costs through national health insurance mechanisms.
– Ensure transparent and equitable healthcare procurement policies supporting local manufacturers.