The interim government is considering deferring Bangladesh’s transition from Least Developed Country (LDC) status amid the ongoing domestic and international economic crises.
Anisuzzaman Chowdhury, newly appointed Special Assistant to the Chief Adviser said this while briefing reporters at the secretariat in the capital on Tuesday.
“A committee, headed by the Chief Adviser’s Principal Secretary Md Siraj Uddin Mia, has been formed to assess the issue of LDC graduation. The committee has already started its work. I believe that within a short time, we can take a decision on it,” he said following his meeting with Finance Adviser Dr Salehuddin Ahmed.
Bangladesh is scheduled to graduate from LDC status on 24 November 2026.
Anisuzzaman Chowdhury said that Bangladesh is on the verge of graduating from LDC status based on false information, and therefore, the country needs to address this issue.
“Our dependency on foreign countries has been growing since 2010. Local sources of income have declined. The tax-to-GDP ratio has fallen to less than 7%. If we need to take on more loans, we will be in a crisis,” he said.
When asked whether the indicators for LDC graduation were misleading, he replied, “Let’s assume everything was correct. But what are our preparations? Around 85% of the market facilities we receive are related to the ready-made garment (RMG) sector. We must diversify our exports. We have been saying since 2018 that we will be graduating from LDC, but the dependency on the RMG sector has not been reduced even a bit after seven years. Why is that?”
Speaking about the possible postponement of LDC graduation, the special assistant to the chief adviser said, “We have not reached any decision yet. We need to meet with the businessmen and owners of the RMG industries. It is not possible to confirm anything right now.”
However, he added that it is not entirely within the government's control to defer the graduation.
He explained that the interim government must appeal to the Committee for Development Policy (CDP) of the United Nations to reconsider the graduation, presenting proper reasons and a credible outline. “We are going to do that,” he added.
At the last Ministerial Conference of the World Trade Organization (WTO), ministers decided to allow the continuation of LDC trade benefits for graduating LDCs for three more years, but the LDCs will need to negotiate bilaterally to obtain the benefits.
The European Union will continue to extend LDC trade benefits to Bangladesh until 2029, as it offers a three-year grace period to graduating LDCs. A few other countries, such as Canada, the UK, and Australia, will also continue providing LDC trade benefits to Bangladesh even after its graduation.
Bd-pratidin English/ Afia
