New procurement bill proposes preference for locally made goods

Résumé détaillé

A bill seeking to amend Bangladesh’s Public Procurement Act has been placed in parliament, proposing changes to ease the participation of newly registered businesses and young…

A bill seeking to amend Bangladesh’s Public Procurement Act has been placed in parliament, proposing changes to ease the participation of newly registered businesses and young entrepreneurs in government procurement.

Planning Minister Amir Khosru Mahmud Chowdhury today placed the Public Procurement (Second Amendment) Bill 2026 in parliament. It was subsequently sent to the Parliamentary Standing Committee on the Ministry of Planning, which was asked to submit its report within two days.

The government had earlier promulgated an ordinance on the matter. The bill seeks to replace that ordinance and incorporate its provisions into law.

Under the proposed legislation, public procurement authorities will not be allowed to impose eligibility conditions that unnecessarily restrict the participation of newly registered firms and emerging entrepreneurs.

Requirements such as extensive years of experience, high annual turnover, previous experience working with government agencies or having executed a single large contract cannot be made mandatory qualifications.

However, procuring entities may impose special requirements in specific cases, considering the nature, complexity and risks of the procurement project.

The bill also proposes that the government may give preference to goods produced or manufactured in Bangladesh, or make the procurement of certain categories of locally produced goods mandatory.

The measures are intended to promote domestic industries, increase local production and employment, and strengthen the direct contribution of public procurement to the national economy.

In addition, the government may relax eligibility criteria to protect domestic industries and ensure the participation of new bidders, micro and small enterprises, women bidders and disadvantaged groups in the procurement process.

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