There is no scope for Bangladesh to move towards graduation from the Least Developed Countries (LDC) category under the current economic situation, Finance and Planning Minister Amir Khosru Mahmud Chowdhury has said.
“The main priority now is to stabilise the economy, since efforts to restore it are still ongoing,” he said on Sunday.
He made the remarks while speaking to journalists after a multi-stakeholder consultation meeting at the NEC Conference Room in the capital’s Sher-e-Bangla Nagar.
The session was held to present the results of the UN’s Independent Graduation Readiness Assessment as part of reviewing Bangladesh’s preparation for graduation from the LDC category.
“Right now we are trying to salvage the economy, so the question of graduation does not arise. When we took the charge, all indicators of the economy were declining. So, graduation is not on the table,” the minister said.
Bangladesh is scheduled to graduate from the LDC category on 24 November this year, after meeting all three criteria – GNI per capita, Human Assets Index, and Economic Vulnerability Index – in 2018 and 2021.
However, due to economic pressures and potential loss of trade preferences, the government has requested a three-year extension to 2029 to ensure a smooth transition.
Amir Khosrus also said there is a conflict in the Middle East, and its impact is huge. Because of this, Bangladesh’s public funds are under severe strain, he added.
“Bangladesh’s debt burden is a major management problem. For future financing, we must consider the cost of borrowing. All of this requires capacity building, which is clearly outlined in the BNP manifesto. We are implementing it step by step,” he said.
“Once capacity building is achieved, then we will be ready for graduation. At this moment, there is no scope for graduation.”
When asked if the country could delay graduation, he replied, “Work is ongoing. Bangladesh’s case is very strong. In this context, there is no scope for graduation.”
Khosru also warned of rising commodity prices. He said, “The Middle East war will affect not just fuel but all commodities. The entire supply chain is being disrupted, and there is no doubt that prices will rise in the coming days.”
“This is not an internal issue of any one country, it is global. Oil prices have doubled in the United States. In Sri Lanka, they have risen by 25 per cent. We have not raised prices yet, but how long can that continue?” he asked.
He added, “As an elected government, we are trying not to put pressure on people. But eventually, the government will not be able to absorb the pressure. If public funds continue to bleed, ultimately the people will suffer.”
