The government has formally requested a three-year deferral of Bangladesh's graduation from the Least Developed Country (LDC) category, citing a series of domestic and international challenges that have disrupted preparations.
On Wednesday, Economic Relations Division (ERD) Secretary Shahriar Quader Siddiqui sent a letter to José Antonio Ocampo, Chairman of the Committee for Development Policy (CDP) under the United Nations Economic and Social Council (ECOSOC), requesting that the LDC transition be extended until November 24, 2029.
Previously, Bangladesh's graduation was scheduled for November 24 this year, with the third review process underway before the final transition.
The request follows recommendations from top business leaders and economists. The interim government, formed after the 2024 political change, suggested coordinating with countries undergoing simultaneous transitions, such as Nepal and Laos. The final decision will rest with the elected government.
Earlier on Wednesday, Commerce Minister Khandaker Abdul Muktadir told the Daily Observer that all necessary steps to delay the LDC graduation will be taken, with the Ministry of Commerce coordinating closely with the ERD.
In the letter, the government argued that extending the deadline would provide "necessary policy space" to stabilize the macroeconomic environment, consolidate ongoing reforms, and complete priority activities under the Smooth Transition Strategy (STS). The five-year preparation period, it said, has been "seriously disrupted" by domestic and international crises.
Global challenges include the lingering impact of the COVID-19 pandemic, the Russia-Ukraine war, slow trade recovery, financial tightening, Middle East instability, and uncertainties in the global trading system. Domestically, the country faces financial sector irregularities, the 2024 political change, and unresolved issues related to Rohingya repatriation.
The government warned that these crises have reduced GDP growth, increased inflation, constrained investment, and pressured foreign exchange reserves. Financial sector fragility and governance issues, it said, threaten poverty reduction and limit the space for transition-related reforms.
Concerns over post-LDC trade benefits were also highlighted, including potential challenges in retaining EU GSP Plus status, U.S. countervailing duties, and competition in bilateral and free trade agreements.
