Bangladesh is still not fully ready to graduate from the Least Developed Country (LDC) category, Finance and Planning Minister Amir Khasru Mahmud Chowdhury has said, citing growing economic pressures and structural vulnerabilities.
Speaking to reporters after a multi-stakeholder consultation at the NEC Conference Room in the capital’s Sher-e-Bangla Nagar on Sunday, the minister highlighted key risks including rising external debt, increasing domestic liabilities, and dependence on high-interest borrowing.
His remarks came following the presentation of an independent assessment by the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), which evaluated Bangladesh’s preparedness for graduation.
“Considering the current economic situation, we are not yet fully prepared,” the minister said, noting that weaknesses in financial management and institutional capacity remain significant concerns.
He warned that ongoing global disruptions - particularly in energy markets and supply chains - could have long-term economic consequences.
According to him, rising global energy prices are already placing pressure on the economy and contributing to inflation, affecting essential goods beyond the energy sector.
While the government is attempting to shield citizens from sudden financial shocks, the minister acknowledged that maintaining subsidies, especially in the energy sector, may not be sustainable in the long run and could eventually lead to higher costs for consumers.
Describing the current economic situation as one of “managing ongoing pressures,” he said most macroeconomic indicators are under strain. Rising import dependence, volatile global prices, and subsidy burdens are further complicating fiscal management.
The minister stressed the importance of structural reforms and stronger institutions to ensure a smooth and sustainable transition.
He also noted that Bangladesh has the option to defer its LDC graduation timeline, allowing more time to strengthen key economic fundamentals.
The consultation was attended by senior policymakers, including Foreign Minister Dr Khalilur Rahman, Commerce Minister Khandaker Abdul Muktadir, the Prime Minister’s Economic Adviser Dr Rashed Al Mahmud Titumir, and UN Under-Secretary-General Rabab Fatima.
