Building Smart Cities in Bangladesh

According to the World Urbanization Prospects 2025 report published by the UN Department of Economic and Social Affairs (UN DESA), 60% of the world’s total population is expected to live in mega-cities by 2030. Dhaka city, with 37 million population, ranks second after Jakarta.

The future quality of life the Dhaka dwellers will depend on the decisions policymakers make today. With emerging technologies, more countries are embracing smart cities, smart governments and smart economies to drive their economic growth.

Bangladesh’s progress in digitalization positions it to set-up smart cities with more efficient, transparent, accountable, responsive and citizen-centric administration and services.

What Signifies SMART

Smart systems use information and communication technology and data analytics to improve decision-making, operational efficiency, government services, and citizen welfare.

Governments worldwide are adopting smart city initiatives that leverage digital technologies and data-driven platforms to enhance public services, promote inclusive growth, bridge the digital divide, and build sustainable, resilient, and citizen-centric urban communities.

In a smart city infrastructure and public and private spaces are interconnected through the internet and IoT devices equipped with sensors, GPS and cameras to collect data on public services, traffic, weather, pollution, noise, utilities and facial expressions.

Data collected by such smart devices is analyzed, which enables informed decision-making, designing innovative and cost-effective services and saving time and resources respectively.

Smart cities promote citizen participation, transparency, accountability, collaboration, social inclusion and problem-solving, which ultimately improves quality of life and fosters economic growth.

Keys to Watch For 

Bangladesh’s digital transformation has laid a strong foundation for improving public services and citizens’ quality of life.

Consequently, emerging demands for efficient infrastructure and sustainable urban and rural development require the government to embrace technology, data-driven governance and intelligent solutions to ensure efficient, transparent, accountable and future-ready public administration.

Successful implementation of smart city initiatives in Bangladesh would require coordinated deployment of technologies such as IoT, artificial intelligence, cloud computing, big data analytics and intelligent communication systems.

These technologies can transform urban service planning and delivery across sectors, including transport, energy, healthcare, environmental protection, public safety and municipal administration.

By adopting data-driven governance and intelligent infrastructure, process for decision-making, resource allocation, service delivery, transparency, accountability and citizen participation can be improved. 

This ultimately will enhance quality of life, promote sustainable economic development and strengthen the competitiveness of Bangladeshi cities.

Despite these opportunities, smart city initiatives present significant legal, regulatory, institutional and governance challenges that must be addressed before implementation.

The use of AI, IoT, data collection and automated decision-making could raise complex issues concerning data governance, privacy, cybersecurity, interoperability, public procurement, liability, algorithmic accountability, protection of intellectual property and fundamental rights.

The success of smart city initiatives in Bangladesh will therefore depend not only on technological readiness but also on effective implementation and a comprehensive, future-oriented legal and regulatory framework ensuring transparency, accountability, security, ethical governance and public trust.

A resilient governance charter supported by clear legislation, institutional coordination, and internationally aligned technical standards would be essential to establish a secure, interoperable and sustainable smart city ecosystem.

Legal and Regulatory Framework 

Bangladesh has enacted the Personal Data Protection Act, 2026 (PDPA), and the Cyber Security Act, 2026, that establish the baseline framework for digital governance.

PDPA regulates data collection, processing, storage, transfer and protection, safeguards data subjects’ rights, defines data fiduciaries’ obligations and facilitates conditional cross-border data transfers. 

The latter, on the other hand, protects cyberspace and digital infrastructure by addressing cyber threats and offences, safeguarding critical infrastructure and data, and tackling cybercrimes, including offences involving AI-generated contents.

These legislative developments mark significant progress but appears insufficient to govern the complex legal and technological ecosystem of smart cities.

As smart cities thrive on data availability and increased use of artificial intelligence, open data policies and clear rules on data sharing will encourage innovation by making non-sensitive information accessible to the public and private bodies and for establishing data usage rights to fostering data economy. Bangladesh therefore needs comprehensive Data Governance 

Regulations, Data Regulations and Artificial Intelligence Governance Policy to support smart city development while safeguarding privacy, cybersecurity, public trust and fundamental rights, and ensuring responsible and ethical use of AI.

We must remember that smart city infrastructure is vulnerable to cyber threats that can cost us dearly. Henceforth making robust cybersecurity standards and measures is essential to ensure security and interoperability. Beyond an enabling legal framework, a successful smart city ecosystem would also depend on reliable, high-quality and interoperable digital infrastructure.

A recent incident in Bangladesh, where AI-enabled traffic cameras reportedly misidentified violations, which underpins the importance of having accurate technology, reliable training datasets and effective system execution.

Poorly designed or inadequately tested systems can undermine public trust, lead to erroneous administrative actions and raise legal concerns regarding due process, accountability and liability.

Given the critical importance of smart city projects, Bangladesh should adopt rigorous technical standards and transparent procurement processes, prioritizing experienced technology providers and system integrators with proven expertise in large-scale smart city deployments.

Established multinational corporations such as Microsoft, Cisco, IBM, Honeywell and Oracle, with experience in smart city solutions, having technical capabilities, compliance standards and presence in Bangladesh, may be considered.

Nonetheless, engaging renowned technology providers, supported by independent certification, periodic audits, performance validation and contractual accountability, is essential to ensuring secure, accurate, resilient and interoperable smart city infrastructure that supports lawful, reliable and citizen-centric urban governance in Bangladesh.

Barrister A B M Hamidul Mishbah, is a technology law practitioner, Managing Partner of OLD BAILEY Chambers and Founder of Bangladesh Intellectual property Forum.