Bangladesh has formally sought a three-year extension to its preparatory period for graduation from the Least Developed Country (LDC) category, arguing that the additional time would help secure a stable and lasting transition rather than postpone the process itself.
Speaking at a seminar in Dhaka on Thursday, Commerce Minister Khandakar Abdul Muktadir said the government’s request was aimed at ensuring Bangladesh’s economic transformation remains sustainable and irreversible.
“We are not seeking this deferral to slow down the momentum. Rather, we seek it to ensure a sustainable, stable and effective economic transformation,” he said.
The seminar, jointly organised by the Economic Relations Division (ERD), the Ministry of Commerce and the Ministry of Foreign Affairs, brought together foreign diplomats, development partners, business representatives and policymakers to discuss Bangladesh’s preparedness for graduation and explain the rationale behind the request.
Bangladesh has already submitted its proposal to the United Nations Committee for Development Policy (UNCDP), which has responded positively following a review of the country’s circumstances.
The committee has forwarded its assessment to the United Nations Economic and Social Council (ECOSOC), which is expected to consider the matter before sending it to the United Nations General Assembly (UNGA) for a final decision.
The commerce minister said Bangladesh had faced a series of domestic and global challenges during the existing preparatory period, including trade uncertainty, geopolitical tensions, inflation and disruptions to global supply chains.
According to him, these pressures have affected the country’s macroeconomic stability and limited institutional capacity, making it necessary for the government to focus first on strengthening the economy and reinforcing the foundations for long-term development.
He also referred to a Graduation Readiness Assessment carried out by the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UNOHRLLS), which concluded that the current environment was not sufficiently favourable for Bangladesh to complete graduation within the existing timeframe.
To prepare for graduation, the government has adopted a roadmap covering 25 priority reforms.
These include measures to improve macroeconomic stability, attract investment, simplify regulations, strengthen institutions, enhance competitiveness and develop human resources.
Among the planned reforms is a proposal to reduce the time needed to establish a business from around one year to just 14 days.
Officials said this would allow companies to begin importing machinery through letters of credit on the following day. The government is also working to simplify business registration and licensing procedures in an effort to reduce costs and improve the overall business climate.
Muktadir said that although the current administration had been in office for only four months, it had already launched a series of major reform initiatives.
State Minister for Planning Zonayed Abdur Rahim Saki said the government was simultaneously working to restore economic stability and rebuild key institutions while dealing with weaknesses in the financial sector.
He said continued support from international development partners would remain important throughout any extended preparatory period, adding that cooperation between the government, private sector and global partners would be essential for achieving sustainable development.
In a keynote presentation, ERD Secretary Md Shahriar Kader Siddiky outlined Bangladesh’s economic and fiscal vulnerabilities, alongside a phased reform roadmap designed to make effective use of the proposed extension.
European Union Ambassador Michael Miller welcomed ongoing reform efforts but cautioned against losing momentum if additional time is granted.
He said the European Union was exploring opportunities for deeper trade relations with Bangladesh, although any future arrangement would require greater market openness and fair competition.
Several ambassadors, high commissioners and representatives of development organisations also stressed the importance of broadening Bangladesh’s export base, strengthening the financial sector and expanding the country’s tax base to support a successful transition from LDC status.
Private sector representatives said the additional three years would provide businesses with valuable time to accelerate deregulation, diversify exports and improve the country’s overall readiness for graduation.
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