Bangladesh is working to secure a three-year delay in its graduation from a Least Developed Country (LDC) to a developing nation, revealed Commerce Secretary Mahbubur Rahman on 16 September.
“We are trying to bring this issue to a UN resolution to postpone our LDC graduation by three years,” Mahbubur said during a workshop at the CIRDAP auditorium in Dhaka.
While expressing hope for a positive outcome, he cautioned that such proposals often face opposition from countries like Japan and Turkey. “This time, we are focusing on securing their cooperation,” he added.
Speaking to journalists after the workshop, Mahbubur acknowledged that Bangladesh has been pushing for a delay in its LDC graduation for some time.
The workshop, titled “RAPID Workshop for Journalists on Implications of US Tariffs and LDC Graduation: Concerns and Options for Bangladesh,” was organized by the Research and Policy Integration for Development (RAPID).
It was attended by RAPID Chairman MA Razzaque, Executive Director Prof Abu Eusuf, and Economic Reporters Forum President Doulot Akter Mala, among others.
The LDC category was first established in 1971, and Bangladesh was included in the list in 1975. Presently, there are 44 LDCs worldwide, with the majority located in Africa. The LDC status is based on criteria reflecting a nation’s vulnerability and development challenges.
Although Bangladesh is set to graduate from LDC status in November 2026, calls to delay the process have grown due to ongoing political instability and economic uncertainty. Business leaders and experts have raised concerns about Bangladesh’s readiness to transition, especially after the political upheaval that led to the fall of the previous government.
In contrast, Chief Adviser’s Special Assistant Anisuzzaman Chowdhury stated on 13 September that delaying the graduation was not possible. “The interim government has no intention or capacity to delay the LDC graduation process,” he said.
Business leaders and economists have warned that proceeding without adequate preparation could expose Bangladesh to significant challenges in the global market. Following LDC graduation, Bangladesh will face double-digit duties in the European Union, where nearly half of its $48 billion apparel exports are directed. Competitors like Vietnam, which has free trade agreements in place, will gain a competitive edge as Bangladesh loses its duty-free access.
Bangladesh Chamber of Industries President Anwar Ul Alam Chowdhury told Times of Bangladesh, “We have long opposed premature LDC graduation before building sufficient capacity.”
He emphasized that capacity development is critical for improving trade facilitation, industrialization, technological advancements, financial sector growth, and governance. Additionally, Bangladesh will face substantial royalty payments after its graduation from LDC status, further complicating its economic landscape.
