More than £162 million is being allocated to the south Asian country this year to help keep Christians, academics, liberal bloggers and other vulnerable groups safe from terrorists.
Speaking to MPs about measures to protect internet users, Minister for Asia and the Pacific, Alok Sharma, said: "In addition to ongoing public and private diplomacy, we have funded safety training for bloggers in Bangladesh.
"We have supported a review of the Information and Communication Technology Act 2006, to bring it into line with international standards and help lawmakers develop a better understanding of international standards on hate speech.
"And I've already mentioned the new programme funded by the Magna Carta fund for human rights and democracy is promoting freedom of expression, and aims to protect those who exercise it."
Recent attacks by IS and al Qaida against Christians, Hindus and other minorities in Bangladesh have left dozens of people dead.
It remains unclear how much of the £162 million aid package will go towards protecting Christians.
Bangladesh, which has an population of 162.9 million (including 828,000 Christians), has been ranked 35th on the World Watch List compiled by the Christian anti-persecution organisation Open Doors.
Speaking about persecution against believers in the country, Open Doors warns: "Despite declaring war on radical groups, Bangladesh's government is known to give in to Islamic pressure. Christians remain at risk, particularly in rural areas where they face pressure from families and religious leaders."
Mr Sharma said UK aid had already helped 200,00 thousand people in Bangladesh and the government would not resort to imposing sanctions as a means to ensure civil and political rights are adhered to.
He added: "Our development programme, still one of the largest in the world, enables us to provide broad-ranging support to address some of the root causes of extremism, including poverty and economic marginalisation.
"Sanctions, I believe, would hamper our ability to do this."