[🇧🇩] LDC Graduation For Bangladesh

[Saif]

CA confirms scheduled LDC graduation

Professor Muhammad Yunus, chief adviser of the interim government, yesterday instructed his cabinet colleagues to prepare for Bangladesh’s status graduation from a least developed country (LDC) to a developing nation in November 2026, effectively doing away with all speculation.

www.thedailystar.net

CA confirms scheduled LDC graduation

Professor Muhammad Yunus, chief adviser of the interim government, yesterday instructed his cabinet colleagues to prepare for Bangladesh's status graduation from a least developed country (LDC) to a developing nation in November 2026, effectively doing away with all speculation.

Many, including a section of economists and businesspeople, were in favour of a deferment by a couple of years.

They reasoned that the economy needed time to cope with the severe fallout of the pandemic, the Russia-Ukraine war, and high global inflationary pressure over the last few years. Even some cabinet members had spoken out on several occasions recently about their doubts.

Shafiqul Alam, the chief adviser's press secretary, yesterday said the interim government had decided to keep to the schedule for availing the United Nations status graduation.

"The government has taken into consideration opinions from experts on whether the process would impact industries and settled on going for it," he said at a briefing at the Foreign Service Academy.

If any detrimental impact is identified, preparations will be made to overcome it, he said.

Besides, he said, benefits provided to Bangladesh for being an LDC would prevail for three years past the graduation.

"I think we have the ability to show our global competitiveness," Alam added.

Replying to a question, the press secretary said the pharmaceutical industry would also face no disruption in availing intellectual property rights.

Bangladesh has met all three preconditions for graduation, thanks to its economic development since the country attained independence in 1971.

The country was listed in the LDC grouping in 1975 to avail different benefits, such as zero-tariff and quota access to different countries, as the economy was on the verge of collapse following the Liberation War.

Such benefits have enabled Bangladesh to currently stand out as the second-largest garment exporter after China.

Bangladesh will lose trade worth over $8 billion annually due to the withdrawal of post-LDC preferential trade benefits, for which the country would have to pay at least 12 percent duty on goods shipments.

Currently, 78 percent of the country's exports avail LDC benefits in 38 countries.

The European Union has already assured that it will continue the LDC trade benefits for Bangladesh for three more years, up to 2029, as a grace period meant to enable a smooth transition.

The UK, Canada, and Australia have given similar commitments, except for some conditions.

Moreover, the World Trade Organization has also decided to grant the same grace period following Bangladesh's appeal for 12 years.​

 

[Saif]

LDC graduation should proceed as planned: Touhid

Foreign affairs adviser Md Touhid Hossain on Monday emphasised that Bangladesh’s graduation from the Least Developed Countries category should proceed as scheduled in 2026, without seeking any deadline extension...

www.newagebd.net

LDC graduation should proceed as planned: Touhid
Bangladesh Sangbad Sangstha . Dhaka 17 March, 2025, 22:09

Md Touhid Hossain

Foreign affairs adviser Md Touhid Hossain on Monday emphasised that Bangladesh’s graduation from the Least Developed Countries category should proceed as scheduled in 2026, without seeking any deadline extension.

‘Neither the government nor the business community has adequately prepared for the transition, but we must move forward,’ he said while addressing a seminar at the Economic Reporters Forum (ERF) auditorium in the capital.

The seminar titled ‘Importance and Prospects of Cotton Cultivation in Bangladesh for Saving Foreign Currency’ was jointly organized by Economic Reporters Forum, Bangladesh Cotton Association (BCA), Bangladesh Cotton Ginners Association (BCGA), and Bangladesh Sudan Cotton Ginning Industries (BSCGI) at ERF Auditorium in the capital.

Touhid pointed out that Bangladesh would have a three-year grace period until 2029 after its graduation, allowing the business community time to adapt.

He added that the European Union had already provided guidelines to the foreign ministry on securing GSP+ trade facilities post-graduation.

During the seminar, the foreign adviser announced the government’s plan to declare cotton as an agricultural product and implement measures within two months to boost domestic production.

He stressed the need for policy support to enhance local cotton cultivation, noting that substituting tobacco with cotton could benefit both farmers and the national economy.

Touhid also touched on the country’s cotton imports, mentioning that Bangladesh is exempt from US tariffs on cotton exports and hinted at the possibility of importing cotton from the United States.

Regarding Bangladeshi expatriates in Oman, the adviser said initiatives were underway to ease passport-related complications, with expectations that these measures would reduce complexities by half.

National Board of Revenue (NBR) Member Moazzem Hossain, Cotton Development Board Executive Director Dr. Fokre Alam Ibn Tabib, Bangladesh Cotton Ginners Association (BCGA) General Secretary Golam Saber, among other were present.​

 

[Saif]

LDC graduation in 2026

Now that the government has made it known that deferring the country's graduation from Least Developed Country (LDC) status is not in its thinking, businesses should get the message straight. For years, policymakers, businesses, and economists have deliberated on strategies to mitigate

thefinancialexpress.com.bd

LDC graduation in 2026
Wasi Ahmed
Published :
Mar 18, 2025 22:58
Updated :
Mar 18, 2025 22:58

Now that the government has made it known that deferring the country's graduation from Least Developed Country (LDC) status is not in its thinking, businesses should get the message straight. For years, policymakers, businesses, and economists have deliberated on strategies to mitigate post-graduation difficulties. The primary concern has always been the loss of trade benefits and economic preferences that LDC status provides. After all these years businesses in the country are still at unease about the competitive business landscape of the near future.

In a series of meetings held recently, businesses have asked for deferment of two to three years to be able to better adjust with the open-field competitive environment. This week the president of the Dhaka Chamber of Commerce and Industry (DCCI) urged upon the government to defer Bangladesh's graduation from least developed country (LDC) status for at least 2 to 3 years considering the prevailing global and local economic challenges. He made the observations at a Focus Group Discussion on "Implementation of the STS (Science and Technology Studies) for Smooth Transition from LDC Status" jointly organised by the Support to Sustainable Graduation Project (SSGP), Economic Relations Division (ERD) and DCCI. On a similar note, at a press briefing, the president of the Bangladesh Chamber of Industries (BCI) asked the government to take steps for deferment of the scheduled graduation by at least three years.

LDC graduation, besides meeting the critical requirements in terms of clear economic indicators, means that a country set to graduate is believed to have overcome the structural handicaps that warrant special treatment from the international community. The UN classifies a country as an LDC if it has per capita income of little over $1,000 a year. A country with so low per capita is perceived as economically vulnerable and scores badly on a range of human indicators, including nutrition, child mortality and enrolment in schools.

Since the term LDC was coined five decades ago, only four countries have graduated so far: Botswana (1994), Cabo Verde (2007), the Maldives (2011) and Samoa (2014). For a country like Bangladesh 'branded' as an LDC since its inception -- although much of its growth and successes owe hugely to its being termed so -- graduation is indeed a winning post, a milestone in the country's long-term economic and social development. But there are challenges, some apparently daunting, that the country will have to take on squarely.

Now, what are the main challenges of graduation that have caused worry among the businesses? To start with, Bangladesh would face stiffer competition from rivals in international trade, especially in exporting, as graduation will cut deeply into the preferential benefits that the country currently enjoys from well over forty countries - the EU being the largest provider accounting for around 54 per cent of the country's exports. Upon graduation from the LDC league, Bangladesh is likely to lose about $2.7 billion in export earnings every year. This is because exports will be subjected to 6.7 per cent additional tariff as preferential duty benefits from different countries and trading partners will no longer be available.

At present, Bangladesh is a major user of duty-free and quota-free market access, with shipments under this facility accounting for 72 per cent of the total exports. Regional trade agreements and bilateral initiatives cover about 90 per cent of the total exports, and thus preferential market access is of special significance.

Furthermore, upon graduation, products made in Bangladesh will become more expensive to buyers and consumers in key export markets. In this context, it may be recalled that according to the United Nations Conference on Trade and Development (UNCTAD), Bangladesh's exports may decline by 5.5 per cent to 7.5 per cent due to preference erosion and exports becoming costlier. No doubt, preference erosion in major exporting countries will thus have implications for export competitiveness and export earnings, and consequently, for GDP growth, employment generation and poverty alleviation.

Beyond trade, the country will also be hit when it comes to foreign aid. Concessionary financing from the International Development Association, the part of the World Bank that helps the world's poorest countries, and multilateral assistance with special benefits will also not be available upon graduation and attaining the middle-income status. The benefit of technical cooperation and other forms of assistance will also be affected. Concessional borrowing is another important area to be hit hard. As per the WB criteria, if a country's per capita income remains above $1,400 for three consecutive years, the rate of interest would surge to about 2.0 per cent from 0.75 per cent-a facility that Bangladesh currently enjoys like all other LDCs.

These difficulties were anticipated years ago, and think tanks such as the Centre for Policy Dialogue (CPD) have long been urging the government and private sector to prepare for the transition. The government, too, has taken some steps to gradually reduce business incentives to help business sectors adjust to the post-LDC scenario.

Following its graduation, Bangladesh will not be left in the desert as there will be a transition phase which will allow the existing cushioning to continue for some time-three years or so.

The government's decision seems to be a step in the right direction, even though challenges are likely to be there after graduation. In a free-trade world, facing competition rather than remaining protected by trade preferences is in the best of interests of the country's trade and commerce as this will ultimately strengthen the economy and enhance our global competitiveness.​

 

[Saif]

LDC graduation to bring opportunities and some challenges: Commerce adviser

After the LDC graduation, Bangladesh will get greater opportunities along with some challenges, Commerce Adviser Sheikh Bashiruddin said on Thursday. He was speaking as the chief guest at a seminar titled "Diversification of Bangladesh's Export Basket: Challenges & Opportunity in the Post LDC Grad

thefinancialexpress.com.bd

LDC graduation to bring opportunities and some challenges: Commerce adviser
UNB
Published :
Mar 19, 2025 20:23
Updated :
Mar 19, 2025 20:23

After the LDC graduation, Bangladesh will get greater opportunities along with some challenges, Commerce Adviser Sheikh Bashiruddin said on Thursday.

He was speaking as the chief guest at a seminar titled "Diversification of Bangladesh's Export Basket: Challenges & Opportunity in the Post LDC Graduation" held at the FBCCI office in Motijheel on Wednesday.

He urged the business community to work together on a consensus to exploit the opportunities. FBCCI Administrator Md Hafizur Rahman presided over the seminar.

Speaking at the seminar Hafizur said that the diversification of products is one of the challenges that Bangladesh needs to face after the LDC graduation.

In this case, priority -based programmes need to be taken by finding out which products and sectors need special importance, he pointed out.

A keynote paper by Centre for Policy Dialogue (CPD) research director Khandaker Ghulam Moazzem was presented at the seminar.

He advised the traders to prepare on how to manage the business in the next principle of LDC.

Secretary of the Ministry of Commerce Mahbubur Rahman, Chairman of Bangladesh Trade and Tariff Commission Dr. Mainul Khan and Export Development Bureau (EPB) Vice Chairman Md. Anwar Hossain were present as the special guests at the seminar.

They said the present government was sincere in addressing the post -LDC passage and solving the problems of the private sector.

The seminar was also attended by the Chairman and CEO of the Policy Exchange Bangladesh M. Mashroor Riaz, Pran-RFL Group Director Ujma Chowdhury, Executive Director of Square Pharmaceutical and Director of Bangladesh Pharmaceutical Association Md. Mizanur Rahman, BPGMEA President Shamim Ahmed.​

 

[Saif]

Govt delivering utmost to ensure smooth graduation from LDCs: Commerce adviser

"Be rest assured, we're doing as much as possible imbued with patriotism in this regard," he said.

en.prothomalo.com

Govt delivering utmost to ensure smooth graduation from LDCs: Commerce adviser
BSS
Dhaka
Published: 21 Mar 2025, 16: 28

Sk Bashir Uddin Prothom Alo

Commerce adviser Sk Bashir Uddin has said that the interim government has been delivering its maximum efforts as much aspossible imbued with patriotism to ensure smooth graduation of the country from the Least Developed Countries (LDCs).

"Be rest assured, we're doing as much as possible imbued with patriotism in this regard," he said.

The commerce adviser said this in an interview with the national news agency at his secretariat office recently while shedding light on the various aspects of the country's LDC graduation in November 2026 and subsequently facing the reaction from the private sector over the matter.

Regarding the reservation from the private sector in the country's LDC graduation in 2026, he raised question why the private sector had literally 'slept' over the issue for years and did not raise any such a strong voice.

Earlier, it was scheduled for 2024 for Bangladesh to be graduated, but it was delayed due to various reasons including the COVID-19 pandemic and other reasons. "It's true that I can't agree or disagree with the demands from the private sector. So, it's a 'paradoxical' situation,"

Bashir went on saying, "As because, if we agree with them, then the necessary reforms will fall again into sleep...Deferring the graduation is not at all depends on the will of the government. They (private sectors) will have to accept it."

Bangladesh has passed in all the three criteria for graduating from the LDCs while it is a different argument whether those are based on right information or data or on wrong information, he mentioned.

The Commerce Adviser said they had to make the crisis management following the unruly acts of the previous AL regime. "My team members are also trying hard with sincerity and patriotism and Insha Allah, hopefully we'll be able to reach into a welfare situation for the country," he continued.

Replying to another query, he said although it is not possible to carry out all the reforms, but definitely some would be carried out. "The rest will move forward dynamically."

Meanwhile, many including a section of economists and businesspeople, were in favour of deferment of LDC graduation by a couple of years.

They reasoned that the economy needed time to cope with the severe fallout of the pandemic, the Russia-Ukraine war, and high global inflationary pressure over the last few years.

While addressing a briefing recently, Shafiqul Alam, the chief adviser's press secretary, said the interim government had decided to keep to the schedule for availing the United Nations status graduation.

"The government has taken into consideration opinions from experts on whether the process would impact industries and settled on going for it," he said.

Besides, the chief adviser's press secretary said, benefits provided to Bangladesh for being an LDC would prevail for three years past the graduation.

Bangladesh has met all three preconditions for graduation, thanks to its economic development since the country attained independence in 1971.

The country was listed in the LDC grouping in 1975 to avail different benefits, such as zero-tariff and quota access to different countries, as the economy was on the verge of collapse following the Liberation War.

Such benefits have enabled Bangladesh to currently stand out as the second-largest garment exporter after China.

Bangladesh will lose trade worth over US$8 billion annually due to the withdrawal of post-LDC preferential trade benefits, for which the country would have to pay at least 12 percent duty on goods shipments.

Currently, 78 per cent of the country's exports avail LDC benefits in 38 countries.

The European Union (EU) has already assured that it will continue theLDC trade benefits for Bangladesh for three more years, up to 2029, asa grace period meant to enable a smooth transition.

The UK, Canada, and Australia have given similar commitments, exceptfor some conditions.​

 

[Saif]

Bangladesh must prepare for post-LDC challenges

Bangladesh is set to graduate from the least-developed country (LDC) club next year, which will bring several challenges in international trade.

www.thedailystar.net

Bangladesh must prepare for post-LDC challenges
CPD’s Mustafizur Rahman tells The Daily Star

Mustafizur Rahman

Bangladesh is set to graduate from the least-developed country (LDC) club next year, which will bring several challenges in international trade.

However, the country is not yet prepared to face these challenges, Prof Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD), said in an interview with The Daily Star.

Bangladesh has met the criteria for graduation in all three categories -- per capita income, human asset index, and economic vulnerability index. It is expected to be upgraded at the next UN General Assembly meeting, scheduled for November 2026.

"It is very difficult to justify deferring graduation from the LDC status, as demanded by many businessmen," he said, adding that even if graduation is delayed, only Bangladesh and Afghanistan will remain in LDC status in this region.

The chief adviser to the interim government last week ordered all concerned to prepare for LDC graduation on time and Prof Rahman echoed those sentiments, saying the focus now should be on preparing to face post-LDC challenges.

He said about 70 percent of Bangladesh's exports to other countries currently benefit from preferential trade agreements, which will be phased out after graduation.

For instance, tariffs in the European Union (EU) market will increase by around 11.5 percent after LDC graduation, while an additional 15 percent will be imposed in the Canadian market.

Increased tariffs in markets like the EU and Canada will pose new challenges, said Rahman, who was a professor at the Department of Accounting and Information Systems at Dhaka University before joining the CPD full-time.

"But we are not taking adequate preparation."

To stay competitive, Bangladesh must enhance enterprise-level productivity, streamline trade facilitation, and improve compliance.

"As we graduate from the LDC category, our priority should shift from preference-based competition to efficiency-driven competition."

Exporters' costs rise if trade facilitation and logistics are not up to the mark, so steps must be taken to reduce these costs.

Bangladesh must also improve labour and environmental standards. As an LDC, buyers and consumers in developed nations have overlooked these issues. Once the country graduates, international buyers will emphasise them.

"So, it is high time to start focusing on these issues," said Rahman.

After graduation, Bangladesh will have to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) regulations, which may create difficulties for the pharmaceutical sector in exporting products.

"So, we should prepare for these situations."

Meanwhile, Donald Trump has shaken global trade by imposing tariffs. Many believe countries like Bangladesh will benefit from the tariff barriers imposed on China, Canada and Mexico.

"I have a slightly different view," said Rahman. "I don't think we should rely heavily on this."

When Trump imposed a 25 percent tariff on China in 2016, Biden maintained it. During this period, Bangladesh had the opportunity to expand its ready-made garment (RMG) exports to the US, but it didn't see significant gains.

In fact, exports have slightly declined in recent years, said Rahman, who was awarded the Ibrahim Memorial Gold Medal by the University of Dhaka in 1999 for the best research work in economics.

China primarily exports non-cotton textiles, which make up around 80 percent of its total RMG exports, while Bangladesh focuses on cotton-based garments, creating market segmentation. Increased tariffs on China might benefit competitors in synthetic fibres but not Bangladesh, the economist clarified.

Moreover, such tariffs may negatively impact US economic growth and inflation, which, in turn, could affect global trade.

Instead of relying on geopolitical shifts, Bangladesh should enhance its competitiveness by reducing business costs, improving logistics, and increasing productivity.

Regarding free trade agreements (FTAs), the economist said Vietnam has 52 bilateral and multilateral free trade agreements, whereas Bangladesh has only one FTA with Bhutan.

This may be because signing FTAs requires offering lower import duties, a tough proposition considering that a significant portion of Bangladesh's revenue comes from duties.

Moreover, industrial and environmental standards will have to improve in factories, as FTAs operate on a reciprocal basis.

Since Bangladesh is set to graduate, there is no other option but to raise standards across all sectors, according to Prof Rahman.

Regarding economic stability, Rahman said several accumulated challenges existed when the interim government took power, and expectations were high.

"In the first and second quarters of the current fiscal year, economic pressure was intensifying. However, in the third quarter, some positive trends have emerged in certain indicators."

For example, Rahman said inflation remains high, but its rate has slightly declined. The availability of winter vegetables in the market during the third quarter has had a positive impact.

Besides, the adoption of a contractionary monetary policy, adjustments in revenue policies, and reductions in certain tariff rates were aimed at balancing fiscal and monetary policies. These measures seem to be having some effect, said the economist.

Another key factor is the external sector -- exports have seen double-digit growth, and remittances have recently experienced their highest growth in years.

As a result, the depletion of foreign currency reserves has halted, stabilising the exchange rate at around Tk 122 per dollar. The difference between the kerb market and the official exchange rate has also narrowed to about Tk 1.5 to Tk 2.

Consequently, imported inflation has somewhat decreased, positively impacting overall inflation, he said. However, inflation remains high, with both food and non-food inflation around 9 percent.

"This has continued to erode people's purchasing power, as wage growth has not kept pace with inflation.

"I believe there is still room for action in market mechanisms. One approach is to increase the number of active market players. Previously, a small group dominated imports, but as some have exited, new importers have entered the market," he commented.

"With greater competition, prices have stabilised to some extent."

He added that another persistent issue is extortion in certain areas. This must be addressed with a zero-tolerance policy.

Moreover, maintaining sufficient stock levels of key commodities and timely open market sales can help stabilise prices, he said.

Historically, poor data management has led to inaccurate decisions regarding production, import volumes, and stock releases. Addressing this issue can lead to more effective market interventions, the economist said.

The biggest concern is now investment. Since Bangladesh adopted a contractionary monetary policy to control inflation, interest rates have risen.

Besides, the banking sector is burdened by the significant accumulation of non-performing loans (NPLs), making it difficult to lower interest rates.

One of the major challenges is how to generate employment and how to reinvigorate investment so that entrepreneurs can actively engage.

Rahman said many investors are likely awaiting elections, hoping political uncertainty will subside afterwards, as investment decisions are usually made with a medium-term outlook.

Regarding the recovery of stolen money, Rahman, who was a member of the white paper formulation committee, said some initiatives have been undertaken.

The Bangladesh Bank has formed a special task force, and the Bangladesh Financial Intelligence Unit (BFIU) and the Anti-Corruption Commission (ACC) are also showing some activity.

However, this process needs to be expedited. Special prosecutions should be pursued where necessary. Recovering laundered money requires legal validation and the establishment of a paper trail to identify ultimate beneficiaries.

"The country must invest in this."

If other nations can recover laundered money, so can Bangladesh. Taking action now will also send a strong message that financial crimes will not go unpunished, he added.​

 

[Saif]

LDC graduation: Challenges and progress

For years, Bangladesh has been approaching a crossroads in its development journey. Having met the criteria for graduation from Least Developed Country (LDC) status in 2018, the government found itself in a conundrum.

www.thedailystar.net

LDC graduation: Challenges and progress

For years, Bangladesh has been approaching a crossroads in its development journey. Having met the criteria for graduation from Least Developed Country (LDC) status in 2018, the government found itself in a conundrum. While graduation symbolises progress and economic maturity, it also threatens to remove trade preferences amid declining foreign reserves, stagnating exports, reduced incentives, and supply chain weaknesses. External shocks, including the Russia-Ukraine war, Middle East tensions, and global inflation, have further complicated this decision.

Despite these challenges, the Bangladesh government has made the courageous decision that graduating from LDC status will strengthen the nation's long-term economic prospects. Rather than postponing, Bangladesh has chosen to face these challenges, refusing to bow to external pressures and signalling confidence in the country's resilience and capacity for adaptation.

However, Bangladesh's transition differs from that of other graduating countries. With around 84 percent of exports concentrated in the ready-made garments (RMG) sector, the nation faces a concentrated risk profile. Unlike other graduating LDCs with more diversified export portfolios, Bangladesh must navigate this transition while protecting its dominant industry and accelerating diversification efforts. This reality demands an exceptional level of preparation and coordinated action.

With LDC graduation, 74 percent of Bangladesh's exports will face market access changes. The EU will enforce stricter trade regulations, such as double transformation rules of origin and an automatic safeguard clause. While GSP+ is an option, it requires compliance with 32 international conventions, and Bangladesh may not qualify since exports exceed the 37 percent threshold. Although GSP benefits in the EU will remain until 2029 and market access to the UK and Australia will continue, trade relationships with Canada, Japan, China, South Korea, and SAFTA countries remain uncertain.

Unlike Vietnam and Cambodia, which have secured favourable regional and bilateral agreements, Bangladesh must now accelerate its trade diplomacy efforts to mitigate the impact of lost preferential access.

The decision to graduate comes at a time when foreign reserves have plummeted, exports have stagnated, and export incentives have been reduced by 60 percent. Many small and medium-sized factories that relied on these benefits have closed, exposing weaknesses in competitiveness due to rising costs. To ensure the sustainability of these businesses post-graduation, the government must implement support mechanisms such as technical assistance programmes, access to affordable financing, and productivity enhancement initiatives to help offset the removal of tax advantages and preferential market access.

The RMG sector, accounting for a major percentage of national export earnings, requires special attention. The WTO and UNCTAD reported a 5 percent decline in the global clothing trade in 2024, signalling tough times. While Bangladesh saw export growth earlier this year, a two-year comparison shows stagnation.

To protect this industry, steps must be taken to enhance competitiveness through technology upgrades, skill development, and product diversification. The government and industry stakeholders should collaborate to counter falling export prices and rising production costs. Despite meeting graduation criteria in 2018, Bangladesh has made limited progress in areas such as trade logistics, energy supply, and customs efficiency. Business costs remain high, and planned economic zones are not yet fully operational.

With graduation imminent, these infrastructure and policy bottlenecks must be addressed urgently. The government should create a task force to fast-track projects that impact export competitiveness, including power generation, transportation networks, and port facilities. Since GSP+ is unlikely to offer relief, securing bilateral trade agreements is imperative.

Bangladesh must overcome regulatory and structural challenges to make itself attractive for such agreements. This requires reforms to investment policies, intellectual property protection, customs procedures, and digital trade frameworks. A negotiation team with private sector representation should be established to pursue these agreements.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Associationb​

 

[Saif]

LDC graduation on time despite tariff turmoil

There is no going back for Bangladesh in its LDC graduation as the plane of status change has already taken off, a top-level meeting noted Tuesday and decided on measures to maximise its trade-economic benefits. "One should keep it in mind that we are not on the ground--we are flying to the

thefinancialexpress.com.bd

Trade negotiation agency soon to secure benefits

LDC graduation on time despite tariff turmoil
Top-level meet chaired by CA decides

FE REPORT
Published :
Apr 16, 2025 00:20
Updated :
Apr 16, 2025 00:20

There is no going back for Bangladesh in its LDC graduation as the plane of status change has already taken off, a top-level meeting noted Tuesday and decided on measures to maximise its trade-economic benefits.


"One should keep it in mind that we are not on the ground--we are flying to the crew side. We were supposed to take off in 2024 but we got extra years due to the Covid," said special assistant to the Chief Adviser on finance Anisuzzaman Chowdhury in metaphorical terms after the meeting.

He was briefing the press on the review meeting on LDC graduation with Chief Adviser of the interim government Professor Muhammad Yunus presiding, explaining why the country cannot defer the graduation now when it is on the cusp of a domestic political transition.

"After reviewing the preparations we have been satisfied that our plane will fly smoothly, we have not seen that much possibility of a crash, and we will be able to reach the crew side by 2026," Mr Chowdhury, the head of an expert committee on LDC graduation, told reporters at the press briefing narrating the outcome of the review.

Advisers of the interim government from finance, commerce, education, planning, environment, and education ministries, the central-bank governor, the special assistant to the CA on economic affairs and the BIDA executive chairman were present at the meeting.

"There is no other option now. In today's meeting we discussed about our preparation in detail. And we have identified our strengths and weaknesses," he said.

"There can be pressure on our employment, on private sector, and we have to take precautions to address these," he added.

Responding to a question on possible challenges, he said building institutional capacity for trade negotiation is the top-most challenge for the post-graduation period.

"To address this, the meeting has decided to immediately set up a separate trade-negotiation agency. The chief adviser has instructed the meeting to find out an experienced and capable person to head this trade-negotiation body."

He also said professionals from government and from private sector would be incorporated into the proposed negotiation agency, which will be launched within a very short time.

Asked about demand from different trade bodies for deferring the graduation, he said deferment is out of question now and all have to understand that the country's plane of graduation is already in flying mode.

He also argues on this score that many fear of losing duty-free market access during the post-graduation period but already a number of countries have told Bangladesh that they will continue the facility for Bangladesh even after the graduation.

The European Union, a critical market for Bangladesh, has agreed to extend the duty-free facility after the graduation, he reminds. Australia and Japan have told (us) the same.

"And during the recent investment summit, the United Kingdom mentioned they will provide us with the duty-free facility even after the graduation," he says to make his point that deferment is not necessary.

In this connection he mentions that poorer countries like Bhutan and Samoa have already graduated from the LDC status.

Terming the Trump tariffs a major turbulence, he said efforts had been initiated to address the situation and the challenges of the US tariffs would not only be for Bangladesh but also for other countries as well.

Regarding the assessment that the country will lose US$10 billion in export earnings after graduation he said this figure was based on static data because this does not include the perspective that many of the major importers will continue to extend duty-free facilities.

Responding to a question on managing the impact of graduation on foreign aid as Bangladesh will be deprived of the concessional loan during the post-graduation era, he quipped dependence on aid is a "colonial hangover" and Bangladesh needs to get out of this spell.

He mentions that due to this dependency on foreign aid the country's tax-GDP ratio could not be raised.

Owing to an aid spree initiated after 2010, the tax-to-GDP ratio got reduced from 10 per cent in 2010 to 6.0 per cent, he said, adding that domestic resource mobilisation must be enhanced to ensure sustainable development.

Asked about the advantages of graduation, he said it would help in attracting foreign investment and in fulfilling the dream of turning the country into a manufacturing hub.

Shafiqul Alam, press secretary to the CA, said during the nearly two-hour meeting, the Chief Adviser directed all concerned to take steps to ensure maximum benefits as Bangladesh remains confident of smoothly graduating from the LDC status.

Prof Yunus mentioned that Bangladesh would be a "manufacturing and economic hub in the region" and discussed how to make it in a better way after the graduation from the club of world's least-developed countries.

The press secretary said the Chief Adviser also stressed the need for constant monitoring by a dedicated team so that no turbulence is seen on this journey as "it is very critical part".​

 

[Saif]

No pulling back on LDC graduation

The recent high-level meeting chaired by the Chief Adviser of the interim government has reaffirmed Bangladesh's commitment to graduate from the Least Developed Country (LDC) category in 2026. With this, any lingering uncertainty about deferring the transition has effectively been dispelled. As the

thefinancialexpress.com.bd

No pulling back on LDC graduation
Published :
Apr 17, 2025 21:52
Updated :
Apr 17, 2025 21:52

The recent high-level meeting chaired by the Chief Adviser of the interim government has reaffirmed Bangladesh's commitment to graduate from the Least Developed Country (LDC) category in 2026. With this, any lingering uncertainty about deferring the transition has effectively been dispelled. As the meeting aptly observed, the country's journey towards graduation, the long awaited milestone, has already taken off, there is no turning back.

While the milestone reflects remarkable progress achieved so far, it comes with significant challenges. Chief among them is the termination of trade preferences, which currently benefit the country due to its LDC status. Acknowledging this, the meeting highlighted the urgent need to build a strong institutional capacity for trade negotiations in the post-graduation landscape. To that end, it has been decided that a dedicated trade negotiation agency will be established immediately. The Chief Adviser has also made it plain that an experienced and competent individual will be appointed to head this new body.

LDC graduation, like many good things, comes with an opportunity cost-an economic trade-off, as economists would frame it. Graduation signifies more than just improved metrics on paper; it represents a belief by the international community that the graduating country has overcome structural weaknesses that once justified special and preferential support. Consequently, the privileges long enjoyed under the LDC category-such as concessional loans and preferential trade access-will gradually disappear. For decades, Bangladesh's economy has reaped substantial benefits from such supports, particularly under schemes like the Generalised System of Preferences (GSP). The rise of the country's apparel sector as a dominant player in global trading is attributed to such a preferential treatment. While global trends towards tariff reductions and regional agreements have already reduced some of these advantages, Bangladesh continues to be one of the largest beneficiaries of LDC-related trade preferences, especially from the EU. Culmination of preferences is thus the prime issue that worries the businesses. To address this, preparedness is paramount. The transition must be strategically managed to mitigate negative impacts and harness new opportunities. Economic resilience will depend on improving governance, boosting institutional efficiency, and embracing a forward-looking mindset. Dynamism in investment, job creation and productivity will also be essential to sustain post-graduation growth.

LDC graduation should not be viewed as an end in itself, but rather as the beginning of a new chapter. It marks a shift to a more competitive and self-reliant development path, where gains must be consolidated through consistent effort and reform. The emphasis must be on building a more productive and competitive economy-one that can thrive without special treatment and compete effectively in global market. The decision to move forward with LDC graduation is both bold and timely. While the road ahead is indeed complex, proactive measures-such as institutional strengthening and capacity building-will be key to navigating the post-graduation era. With vision, commitment, and strategic planning, the country can not only weather the transition but also emerge stronger and more resilient in the global economic landscape.​

 

[Saif]

Post-LDC challenges and the future of Bangladesh's exports

The path ahead is becoming clearer, and more complicated.

www.thedailystar.net

Post-LDC challenges and the future of Bangladesh's exports
Bangladesh export future after LDC graduation

FILE VISUAL: SHAIKH SULTANA JAHAN BADHON

As Bangladesh approaches its graduation from the Least Developed Country (LDC) category, the anticipated challenges of losing preferential trade benefits are already manifesting. The United States has recently imposed a 37 percent reciprocal tariff on imports from Bangladesh, which is a significant blow to the latter's exports. Though the tariff's execution has been temporarily put on hold, if not resolved in time, this sudden increase threatens to erode the country's competitiveness in its largest export destination.

Concurrently, India has withdrawn the transshipment facility that previously allowed Bangladeshi exports to third countries via Indian ports and airports. This decision, which the Indian authorities claim is aimed at alleviating congestion and costs in India's own export channels, is expected to disrupt Bangladesh's export logistics, particularly affecting shipments to some countries. These developments underscore the urgent need for Bangladesh to diversify its export portfolio, invest in infrastructure development, revisit the trade architecture, and engage in strategic trade negotiations to mitigate the impacts of its LDC graduation.

The path ahead is becoming clearer, and more complicated. While diversification has long been a talking point, it is now a matter of survival. Relying on the export of ready-made garment (RMG) products alone is no longer an option. Bangladesh must invest in building up sectors that have already shown early signs of promise. Pharmaceuticals, ICT, and agro-processing are no longer fringe players. They are contenders, capable of anchoring the next chapter of the country's export story. Take pharmaceuticals, for instance. The world's appetite for generic medicine continues to grow, and Bangladesh has both the factories and the know-how to meet that demand. The transition from the LDC status could actually open the door for producing patented drugs, a game-changer if handled right.

But shifting what we sell is only half the equation. Where we sell must change too. For years, Bangladesh's export playbook has read like a short list: the European Union, the US, Canada—dependable, but limited. The world is bigger than that. Africa, South America, the Middle East and even some large economies in Asia are waking up as consumer markets. These are regions with rising demand, growing populations, and very few Bangladeshi products on their shelves. Cracking these markets will not be easy. It will mean understanding local tastes, building smarter logistics, and pricing with precision. But the opportunity is real, and the timing has never been better.

The other force reshaping competitiveness is less visible but equally powerful: technology. Automation, artificial intelligence, and real-time data have changed how factories run and decisions are made. In Bangladesh, these tools have been met with some hesitation, and understandably so. Fear of job losses is not unfounded. But the truth is, technology can enhance jobs as much as it replaces them. A sewing machine operator can become a line technician. A production supervisor can become a systems analyst. What is needed is training—not just any training, but programmes that are fast, focused, and aligned with the real industry needs. If done right, automation does not hollow out the workforce; rather it strengthens it.

None of this will matter, though, if the product gets stuck at port. Bangladesh has an infrastructure problem, which has been dragging down competitiveness for years. Roads get clogged too easily, customs clearances move too slowly, and ports often lag behind demand. The result is cost: exporters lose both money and time. According to the World Bank, logistics eat up nearly one-fifth of export costs in Bangladesh. That is double what many of our competitors face. Fixing this will take more than patchwork solutions. It will require a systemic overhaul—faster customs, smarter ports, and better roads—because the supply chain has to move as fast as the market it serves.

As the world grows more demanding, compliance is no longer a choice. It is the ticket to staying in the game. Product safety, labour rights, and environmental responsibility are the new benchmarks. Global buyers want transparency, certifications, traceability, and proof that what they are sourcing is ethical. This means companies must invest in more than just machines. They must invest in processes that show compliance and in people who can manage it. The government must play a part in this as well. Streamlined standards, quicker approvals, and constant engagement with exporters will make the difference between staying competitive and falling behind.

Trade diplomacy, once a quiet background act, now needs a front-row seat. The era of simply receiving trade perks is ending. Bangladesh must learn to negotiate on its own terms. It will not be easy, but the playbook is out there. Vietnam, with its network of deals stretching from Europe to Asia, has shown what is possible when trade is treated as strategy. Bangladesh has the size, the location, and the market to cut its own deals; what it needs now is the will to execute.

Sustainability, once seen as a luxury, is fast becoming a business requirement. Major retailers are making it clear: green practices are no longer treated as an add-on. And Bangladesh, surprisingly, is already ahead of the curve. The country is home to the largest number of certified green RMG factories in the world, which gives us a competitive edge. The next step is to scale that success and make it visible to the global consumer. Sustainability should not just be part of the story. It should be THE story.

The choices Bangladesh makes in the next few years will define the next few decades. Graduation from the LDC status is not the end of the journey, but the beginning of a harder one. A journey that will test the depth of strategy, the speed of execution, and the strength of collective will. But as history has shown, Bangladesh has never lacked resolve. The real question now is whether it can turn that resolve into reinvention.

Mamun Rashid, an economic analyst, is chairman at Financial Excellence Ltd and founding managing partner of PwC Bangladesh.​

 

[Saif]

Govt urged to move to defer country's graduation from LDC as it lacks readiness

Speakers from a diverse coalition of national and international stakeholders have urged the government to move a request to defer the country's graduation from the Least Developed Country (LDC) category, currently scheduled on 24 November 2026. They made the call at a roundtable on "Bangladesh's L

thefinancialexpress.com.bd

Govt urged to move to defer country's graduation from LDC as it lacks readiness
Published :
Apr 23, 2025 22:24
Updated :
Apr 23, 2025 22:24

Speakers from a diverse coalition of national and international stakeholders have urged the government to move a request to defer the country's graduation from the Least Developed Country (LDC) category, currently scheduled on 24 November 2026.

They made the call at a roundtable on "Bangladesh's LDC Graduation: Between Readiness and Reality," organised by the Change Initiative, a think tank, at a hotel in the city on Wednesday, UNB reports.

They cited those significant economic headwinds amid recent political turmoil and potential severe negative impacts if graduates with insufficient preparedness.

Estiaque Bari, head of research, Change Initiative in his keynote presentation underscored that Bangladesh’s upcoming LDC graduation is likely to impact 71.5% of its exports, with projected tariff hikes of 8.7% in the EU, 9.1% in the UK, and up to 15.8% in Japan for key sectors like footwear and garments.

“As Bangladesh prepares to graduate, with 81% of its exports dependent on the RMG sector and tariffs set to rise across key markets and product segments in the absence of critical trade agreements, the risks extend far beyond just the loss of trade and financial preferences”, he said.

Amir Khasru Mahmud Chowdhury, member, National Standing Committee of BNP, said "Bangladesh stands at an inflection point, but the foundation of its development narrative is hollow—manipulated figures, collapsed financial institutions, and a dangerously narrow export base.

“LDC graduation cannot be built on broken systems... True transition demands... people’s representation in decision-making. Without democratic legitimacy, no milestone is meaningful,” he added.

Zonayed Saki, chief coordinator, Ganosamhati Andolan, aligned with the perspective, “Graduation is inevitable-but the real question is: is today the right time? LDC status is not a matter of ego, it’s a matter of readiness.

Sadia Farzana Dina, joint chief coordinator of National Citizen Party said that without reliable data, institutional reform, and a national dialogue, rushing this transition could threaten our economic survival.

"The consensus emerging from this critical dialogue is clear: proceeding with LDC graduation in 2026, under the current circumstances, poses unacceptable risks to Bangladesh's economic stability and development gains," said M. Zakir Hossain Khan, chief executive of Change Initiative.

“LDC graduation is neither a badge of prestige nor a policy formality-it is a deeply political and structural shift”, he observed.

Professor Mushtaq Khan of SOAS, University of London, commented, “LDC status is not a formality-it’s a negotiated privilege tied to global protections. Bangladesh is on track to graduate, but without critical homework.

“We’re exiting while our banking system remains broken, our power sector contracts are riddled with corruption, and our export competitiveness is hollow beyond garments”, he said.

Representing the international business community, Nuria Lopez, Chairperson, European Union Chamber of Commerce in Bangladesh, stressed the human cost and the imperative for government action: “Without an extension, 2.5 million unskilled workers risk being left behind as green industries rise. Bangladesh must set aside ego and prioritize workforce upskilling, productivity, and investment in R&D to ensure a just transition”.​

 

[Saif]

'India will benefit from Bangladesh’s premature graduation’ from LDC status

One of the main beneficiaries would be India. If Bangladesh loses its trade privileges, India stands to gain the most.

en.prothomalo.com

Economist warns of danger
'India will benefit from Bangladesh’s premature graduation’ from LDC status

Staff Correspondent Dhaka
Published: 23 Apr 2025, 21: 35

Guests attend a roundtable discussion titled "Bangladesh’s Graduation from Least Developed Country (LDC) Status: Preparations and Realities" held today, Wednesday at a hotel in the capital. Photo: Prothom Alo

Economist Mushtaq Khan expressed concerns over Bangladesh’s lack of preparation for graduating from the United Nations' list of Least Developed Countries (LDCs).

He believes if Bangladesh graduates from LDC status, it will lose tariff-free trade benefits, face higher interest rates on foreign loans, and domestic industries will be exposed to intense competition, potentially leading to the shutdown of many factories.

Mushtaq Khan, a professor at the School of Oriental and African Studies (SOAS), University of London, shared these views at a roundtable discussion titled “Bangladesh’s Graduation from Least Developed Country Status: Preparations and Realities,” organized by the organisation Change Initiative at a hotel in Dhaka's Gulshan area today, Wednesday.

Politicians, economists, academics, researchers, and government officials attended the event.

Mushtaq Khan also said competitor countries want Bangladesh to graduate from LDC status, as it benefits them. One of the main beneficiaries would be India. If Bangladesh loses its trade privileges, India stands to gain the most.

He warned that if Bangladesh applies to the United Nations to delay its graduation, competitor countries might oppose it. They will desire that the application of Bangladesh is not considered.

At the event, Change Initiative’s Head of Research, Ishtiaq Bari, presented an overview of Bangladesh’s graduation process. He noted that Bangladesh has met all three criteria for LDC graduation and is scheduled to officially graduate on 24 November 2026.

In some regions, Bangladesh will continue to receive tariff-free access until 2029, and patent-related exemptions for pharmaceutical production will last until 2033.

In his presentation, Ishtiaq Bari noted that no country can unilaterally delay its graduation. To do so, a country must submit a request to the UN Committee for Development Policy (CDP) with strong supporting arguments. The CDP will then evaluate the request and a final decision will be made by the UN General Assembly.

After the July mass uprising, the interim government initially considered delaying the graduation but later withdrew from that plan. On 13 March, the Advisory Council decided to proceed with the graduation as scheduled.
As an LDC, Bangladesh currently enjoys duty-free export privileges in markets like Europe, access to low-interest foreign loans, and the ability to impose higher tariffs on imported goods. Graduation would mean losing these benefits and facing more competition from imported products with lower tariffs.

Mushtaq Khan asked, "Can Bangladeshi producers compete with products from China and India? Are the country’s electronics, processed food, and pharmaceutical industries ready? Is Bangladesh overall ready?"
He said, "I don’t see the evidence."

He highlighted a major concern regarding apparel exports to the European market: automatic tariff imposition. If a country’s exports exceed a certain threshold of the EU’s total imports for a particular product, tariffs are automatically applied. Bangladesh’s apparel exports have already crossed that threshold. Even though the EU has granted Bangladesh tariff-free access for three more years, this automatic tariff mechanism could reduce competitiveness.

Mushtaq also noted that a major European buyer has expressed concern over Bangladesh’s premature graduation.

He mentioned that Bangladesh might still be able to request a few extra years before graduating, by presenting three evidence-based arguments to the UN Economic and Social Council (ECOSOC):

Premature graduation could increase poverty in Bangladesh, which is a concern ECOSOC takes seriously.

Ongoing instability in global trade caused by US President Trump’s trade wars makes graduation risky.

Fifteen and a half years of authoritarian rule have severely damaged Bangladesh’s institutions and economy, requiring more time for recovery.

Mushtaq suggested Bangladesh engage with other countries like Nepal and Bhutan, which are also interested in delaying graduation. If Bangladesh makes the request alone, competitors like India might block it—especially since relations with India are currently not favourable.

He proposed that Bangladesh form a coalition with like-minded countries and approach the United Nations together, increasing the chances of securing a delay.

BNP standing committee member Amir Khasru Mahmud Chowdhury was present as a special guest. He questioned the economic data compiled under the ousted Awami League government, which has been used to justify LDC graduation. He mentioned issues like the troubled financial and banking sectors, and lack of export diversification.

Amir Khasru said that the graduation decision should reflect the will of the people. Over the past 15 years, Bangladesh lacked democracy, but now hopes for a return. A future elected government should make the final decision, following debates in parliament.

He emphasised the need to initiate efforts to delay graduation and allow the people’s representatives to debate and decide.

Cynthia Mela, Country Director of the French development agency AFD, Ayub Bhuiyan, General Secretary of the Press Club, AKM Sohel, additional secretary of the Economic Relations Division, Nuria Lopez, Chairperson of the EU Chamber of Commerce in Bangladesh, Mohammad Asaduzzaman, Co-founder of Dhaka Institute of Research and Analytics and Md Zakir Hossain Khan, CEO of Change Initiative, among others, spoke at the event.​