In the wake of the Milestone incident, public discourse surrounding Bangladesh’s, particularly the Bangladesh Air Force’s, equipment had arisen. There appeared to be a current of acceptance regarding the fact that urgent procurement of more advanced vehicles and weapons is needed to replace obsolete systems and prevent future catastrophes.
Before being handed down to the Bangladesh Armed Forces for regular use, its firearms, vehicles, weapons systems, and maintenance equipment purchases flow through the Directorate General of Defense Purchase (DGDP) under the Ministry of Defense. Every decision, from procurement to disposal, shapes the Army, Navy, and Air Force, bridging national ambitions with global suppliers. By law, acquisitions must go through local companies, often partnering with foreign manufacturers who, in turn, must comply with the laws of their home countries.
DGDP provides the framework, but execution is a delicate balance of domestic and international channels. Behind every vehicle or equipment lies a story of strategy, diplomacy, and meticulous planning that sustains national security and our major foreign suppliers, such as China and Russia, provide critical platforms and equipment to the Bangladesh Armed Forces.
Extensive details are kept as classified information for strategic security purposes, but given below is a breakdown of what has been made publicly available for 2025. [The Business Standard]
| Category | Allocation (Tk crore) | Description |
| 1.Defense Services Operating Expenses | 37,812 | Covers salaries, routine maintenance, training, and day-to-day operational costs of Army, Navy, Air Force. |
| 2. Defense Services Development Expenses | 916 | For capital procurement such as weapons systems, equipment modernization, and strategic projects. |
| 3. Ministry of Defense (Other Services) Operating Expenses | 1,923 | Supports administrative functions, logistical support, and ancillary services under MoD. |
| 4. Armed Forces Division Operating Expenses | 47 | Earmarked for coordination and oversight of the three services and associated defence agencies. |
| Total Defense Allocation | 40,698 | Total budget allocated to the defense sector for FY 2025‑26. |
The government has earmarked Tk40,698 crore for the Ministry of Defense in the 2025–26 national budget, announced by Finance Adviser Dr. Salehuddin Ahmed, out of a total allocation of Tk7,89,999 crore. The majority, Tk37,812 crore, is set for operational costs covering salaries, logistics, and day-to-day military activities, while development projects receive a modest Tk916 crore. Another Tk1,923 crore is allocated to other services under the ministry, and the Armed Forces Division gets Tk47 crore for administrative operations. Analysts note that the budget emphasizes routine spending over modernization, reflecting a continuing trend of limited development in Bangladesh’s defence sector. [Dhaka Tribune]
Procurements for all sorts of equipment and vehicles are typically carried out as part of larger packages that necessarily include spare parts and maintenance equipment. They also often include the provision of training for Bangladeshi servicemen and, in special cases, a technology transfer that makes it possible for assembly to be done within Bangladesh.
Two examples of previous procurement packages by the Bangladesh Armed Forces
The Bangladesh Air Force (BAF) procured the Yak-130 aircraft as an advanced jet trainer and lead-in fighter trainer capable of simulating 4++ and fifth-generation fighter cockpits. The aircraft also performs light-attack missions, providing a dual role of pilot training and ground-attack support.
The procurement was executed through the Russian state arms export agency Rosoboronexport, with the Irkut Corporation (Irkutsk Aviation Plant) serving as the manufacturer. This acquisition was part of a broader Russian credit line for defence equipment valued at approximately US$1 billion, agreed in 2013.
The contract was signed in the fourth quarter of 2013. The first six Yak-130 aircraft were delivered in September 2015, with full delivery completed in 2016. The deal was reported at approximately US$800 million for 24 aircraft, or around US$30 million per unit, excluding training and associated ground equipment. [FlightGlobal]
In December 2019, the Bangladesh Ministry of Defense announced an order for 44 VT-5 light tanks from China North Industries Corporation (NORINCO) to enhance the Bangladesh Army’s armoured capabilities. The acquisition aimed to strengthen operational flexibility, particularly in terrain where heavier main battle tanks are less effective, such as riverine, marshy, and hilly regions common in Bangladesh. Alongside these considerations, the need to replace the aging Type 69-IIG light tanks was also a key factor in the VT-5 purchase.
Manufactured by NORINCO, the VT-5 is classified as a light tank, optimized for mobility and suited to Bangladesh’s geographic and strategic needs. The first batch of VT-5s was reportedly shipped around April 2021, marking the beginning of the delivery phase. By November 2022, a substantial number of the tanks had arrived, and by mid-to-late 2022, the Bangladesh Army was believed to have received all 44 units.
While the exact cost of the contract was not officially disclosed, defence analysts estimate the price at approximately US$4–6 million per unit, suggesting a total value in the range of US$200–250 million. According to published specifications, the VT-5 can carry up to 38 rounds of 105 mm ammunition, though details regarding spare parts, ammunition deliveries, and the duration of maintenance agreements have not been publicly confirmed. No further details are made publicly available either.
In a broader strategic move, Bangladesh plans to establish a specialised defence economic zone aimed at building a self-reliant military industrial base. The initiative requires an estimated Tk15,000 crore, to be mobilised through public–private partnerships (PPPs), joint ventures, foreign direct investment (FDI), or the revenue budget. The zone will focus on producing drones, cyber-technology systems, arms, ammunition, and other potentially export-oriented defence products.
Planning for a Defense Economic Zone (DEZ)
Bangladesh’s domestic demand for defence products is estimated at Tk8,000 crore, but experts warn that exports are necessary for long-term viability due to the limited size of the local market. Investment challenges include the fact that Tk15,000 crore cannot be allocated in a single year, necessitating phased investment over multiple years and government support for land acquisition. Analysts note that Bangladesh currently lags behind regional peers such as Pakistan and India, as well as global leaders, and building a self-reliant defence industry could take 25–30 years.
Current defense procurement laws limit private participation. Officials recommend new legislation and clear investment procedures to attract investors. To guide the development of the defence industry, two high-level committees have been formed. [The Business Standard]
- Defense Industry Policy Implementation Committee – Responsible for drafting and executing the national defense industry policy.
- Bangladesh National Defense Industry Development Coordination Council – Supervises overall progress.
Through such a scheme, planning officials wish to stress the goal of transforming Bangladesh from a net importer to a potential exporter of arms and ammunition, leveraging strategic alliances, partnerships, and clear policy frameworks to ensure steady growth and sustainability. While ammunition exports are still a distant prospect for Bangladesh, policymakers can pursue other initiatives to strengthen the sector for the proposed defence economic zone.
A) As a major state-owned defense industrial group, NORINCO can provide large-scale manufacturing and turnkey projects, supplying complete production lines, heavy equipment, and systems integration, which will be ideal for quickly building initial capacity. The company’s experience with joint ventures and technology-transfer arrangements in other countries could accelerate local production if paired with strong intellectual property and transfer agreements. NORINCO’s expertise in naval systems, armoured vehicles, and ammunition production aligns with Bangladesh’s existing needs and regional demand.
B) Colt (U.S. Small Arms/Legacy Defense Firm) can contribute through precision small-arms design and licensing, helping to set manufacturing, testing, and certification standards in the zone. Beyond production, Colt can provide training programs, quality assurance, and aftermarket support, including armorer courses and spare-parts supply chains, which are critical for long-term sustainment and export credibility. Conditional partnerships or licensed production under strict export-control compliance could also open regulated export channels to markets that value Western provenance and certifications.
C) H&K (Germany) brings high-standard manufacturing practices and rigorous compliance frameworks, offering a model for transparent, export-ready defence production. The company can support the development of specialist small-arms technology, modular weapon systems, and integrated training programs for operators and maintenance personnel. Partnering with a respected European OEM like H&K can also raise product standards through testing and certification aligned with NATO or European norms, thereby enhancing export potential for Bangladesh’s defense economic zone.
Scrutiny of defense purchases
Scrutiny serves as a cornerstone of transparency and accountability, particularly in governance, financial management, and public administration. When it comes to the defence system of Bangladesh, scrutiny becomes even more crucial as defense budgeting and its relevant operations involve vast amounts of public money and sensitive security considerations.
Scrutiny of the defense purchase process is provided from the following:
- Defense committees review budgets, expenditures, and procurement to ensure funds match strategic priorities, leading to reallocations or adjusted spending.
- National audit offices and inspector generals audit defense spending, contracts, and operations to detect inefficiencies or irregularities, prompting budget adjustments.
- Examining contracts ensures cost-effectiveness, necessity, and proper lifecycle management, preventing overpricing and duplication.
- Assessing resource efficiency aligns spending with national security priorities and supports critical operations and modernization.
- Journalists, think tanks, and civil society track defense spending, exposing irregularities and enhancing transparency and accountability.
- Comparing budgets with past spending, allies, or international standards evaluates efficiency and promotes cost-effectiveness.
Geopolitical considerations always play a crucial role in the scrutiny of defense matters. Bangladesh’s defense strategy is increasingly shaped by cooperation with both the United States and China. With the U.S., discussions focus on acquiring American equipment, participating in joint exercises, and conducting training programs like the “Land Forces Talks” with the U.S. Army Pacific, enhancing interoperability and supporting regional security and peacekeeping missions. Portions of the defense budget are thus allocated to U.S.-supplied equipment, training, and joint operations aligned with Indo-Pacific priorities. Meanwhile, China remains a major supplier of military hardware, offering cost-effective arms, technology-transfer agreements, and soft-credit financing, enabling Bangladesh to pursue large-scale procurements and modernization programs.
Bangladesh had planned to acquire 20 Chinese Chengdu J-10CE multirole fighter jets for $2.2 billion under Forces Goal 2030, marking the largest aviation purchase in its history. Deliveries are expected by 2027, with payments spread over ten years. An 11-member inter-ministerial committee will oversee procurement, training, and logistics. The deal signals a strategic shift toward Chinese defense technology, enhancing Bangladesh Air Force’s 4.5-generation capabilities, maritime strike potential, and deterrence over the Bay of Bengal. [Anadolu Ajansi]
Key Takeaways
- Forces Goal 2030 drives Bangladesh’s defence modernization across the Army, Navy, and Air Force.
- DGDP under MoD manages all procurement, often partnering with foreign suppliers like China and Russia.
- 2025–26 defence budget is Tk 40,698 crore, mostly for operational expenses; modernization receives limited allocation.
- Major Air Force procurement plans include 20 Chengdu J‑10CE fighter jets ($2.2 B) from China, enhancing 4.5-generation capabilities and the procurement deal of 12 to 16 Eurofighter Typhoon airframes, along with associated training and logistical support, is estimated to cost approximately $2.5-3.0 billion.
- Army procured 44 VT-5 light tanks from China.
- Bangladesh proposed a Defense Economic Zone (~Tk 15,000 crore) aims for self-reliance and eventual export.
- Parliamentary committees, auditors, and civil society track budgets and contracts for transparency and accountability.
- Bangladesh balances relations with U.S. (training, interoperability) and China (hardware, financing), enhancing deterrence and regional influence for strategic alignment.
Verification Note: Information is collected and cross-verified through multiple channels, including official information desks, credible social media sources, and established news outlets. Each source is assessed for reliability, with unsubstantiated or irrelevant claims excluded. The validated information is then systematically analyzed to derive conclusions.
Monjuba T Bhuiyan is a Finance student at North South University (NSU), currently working as a Strategic & Security Reporting Fellow at the Bangladesh Defence Journal, where she focuses on writing about the intersection of economics, security, and geopolitics. Her analysis emphasizes structure over noise, context over headlines, and strategy over spectacle.