[🇧🇩] LDC Graduation For Bangladesh

[Saif]

Wahiduddin stresses FTAs for successful LDC graduation

Planning Adviser Dr Wahiduddin Mahmud has highlighted the need for free-trade agreements (FTAs) among the member- countries of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Addressing a programme marking BIMSTEC's 28th founding anniversary in the cap

thefinancialexpress.com.bd

BIMSTEC 28th founding anniversary
Wahiduddin stresses FTAs for successful LDC graduation

FE REPORT
Published :
Jun 18, 2025 08:28
Updated :
Jun 18, 2025 08:28

Planning Adviser Dr Wahiduddin Mahmud has highlighted the need for free-trade agreements (FTAs) among the member- countries of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

Addressing a programme marking BIMSTEC's 28th founding anniversary in the capital on Monday evening, he pointed out that Bangladesh needs FTAs with BIMSTEC members as well as other countries for a smooth transition to the post-least- developed-country (LDC) graduation period.

He also stressed seamless multimodal connectivity among BIMSTEC members, saying it is a pre-condition for trade and investment promotion, people-to-people contacts, and energy cooperation, which are facilitators for economic development.

"Bangladesh remains strongly committed to advancing regional economic integration as a lead country in the trade, investment and development sector, including the blue economy," he added.

Reaffirming Bangladesh's commitment to regional cooperation, he expressed confidence in BIMSTEC's potential to become a dynamic and result-oriented organisation that delivers tangible benefits to its people.

BIMSTEC was established on June 6, 1997, through the signing of the Bangkok Declaration.

Fisheries and Livestock Adviser Farida Akhter, secretaries and officials of the government of Bangladesh, ambassadors and high commissioners, heads of international organisations, members of the diplomatic corps, media personnel, representatives of think tanks, and members of the BIMSTEC Secretariat attended Monday's event.

Welcoming the guests, BIMSTEC Secretary General Indra Mani Pandey noted that BIMSTEC, since its inception, has made significant progress in forging regional cooperation in various sectors.

It has succeeded in creating the institutional framework that it needs to function as an efficient and effective regional organisation, he said.

Besides, it has its own charter and well-established core and sectoral mechanisms, including senior officials meetings, ministerial meetings, and summits, he said.

Reflecting on BIMSTEC's 28-year journey, Mr Pandey highlighted the significant outcomes of the 6th BIMSTEC Summit held in Bangkok in April this year.

He said at the summit, BIMSTEC leaders, apart from their comprehensive summit declaration, adopted BIMSTEC Bangkok Vision 2030, providing a roadmap for building a prosperous, resilient, and open BIMSTEC.

They proposed a number of steps to enhance regional cooperation under BIMSTEC, he also said.

In addition to signing and adopting the Agreement on Maritime Transport Cooperation, memoranda of understanding between BIMSTEC and its developmental partners, the Indian Ocean Rim Association, and the United Nations Office on Drugs and Crime were also inked.

As part of the anniversary celebration, BIMSTEC member states showcased the cultural "unity in diversity" of the Bay of Bengal region by presenting their dance performances, exhibiting artefacts and other unique and symbolic items, and the march past, with the representatives proudly carrying their national flags in a symbolic display of unity and solidarity among member states.

Since September 2014, the BIMSTEC Secretariat located in Dhaka has been committed to supporting the member states to implement the decisions made by the leaders.

At Monday's programme, the organisation's secretary general conveyed that the BIMSTEC Secretariat was immensely grateful to the government of Bangladesh for hosting the Secretariat and providing it with all the necessary support.

He said the BIMSTEC Secretariat was also grateful to the embassies and high commissions of the BIMSTEC member states in Dhaka for their continued cooperation, including the organisation of the reception.

The celebration reaffirmed in a unique way BIMSTEC's growing importance as a regional platform for the realisation of the goals of peace, prosperity, and development in the Bay of Bengal region.

It also reflected the commitment of the member states to the organisation's success.

BIMSTEC comprises seven countries of the Bay of Bengal region - Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.

It pursues regional cooperation in seven broad sectors - agriculture and food security; connectivity; environment and climate change; people-to-people contact; science, technology and innovation; security; and trade, investment and development.

The cooperation also covers eight sub-sectors - blue economy, mountain economy, energy, disaster management, fisheries and livestock, poverty alleviation, health, and human resource development.​

 

[Saif]

Bangladesh's LDC graduation: risks & readiness

Bangladesh is at a landmark in the nation’s life—one of jubilation and an invitation to strategic contemplation. Bangladesh. With its anticipated graduation from the United Nations’ List of Least Developed Countries (LDCs) by 2026, the nation is poised to turn a new page in its de

thefinancialexpress.com.bd

Bangladesh's LDC graduation: risks & readiness
Trade Dividends, Investment Climate, and Competitiveness

Serajul I Bhuiyan
Published :
Jul 08, 2025 22:28
Updated :
Jul 08, 2025 22:30

Bangladesh is at a landmark in the nation’s life—one of jubilation and an invitation to strategic contemplation. Bangladesh. With its anticipated graduation from the United Nations’ List of Least Developed Countries (LDCs) by 2026, the nation is poised to turn a new page in its development history. The graduation is a strong indication of Bangladesh’s progress in achieving phenomenal success in poverty reduction, improvements in health and education, increased per capita income, and macroeconomic stability.

But with this latter benchmark comes also a set of structural and economic problems. Graduation means the end of some of the world’s special treatment—above all, access to the world’s markets duty-free and concessionary lending and technical assistance—on which the country’s export-led success and infrastructure growth have relied all these years. For a nation that still lags in addressing chronic inequality, climate vulnerability, and productivity disparities, the post-graduation phase must be met with a different agenda and policymaking approach.

This article addresses the most relevant risks and drivers of readiness concerning LDC graduation, including the risk of trade concession losses, the shift in the investment climate, and the need to establish national competitiveness. Since Bangladesh stands at the threshold stage, the question is not whether it will happen but whether it can thrive after graduation. It is a time to reflect, look forward, and move forward with resolve to ensure this milestone is not a stumbling block but a stepping stone towards shared and sustainable prosperity.

The Loss of Preferential Market Access: The most direct and far-reaching consequence of Bangladesh’s graduation from LDC status is the phased withdrawal of preferential market access that is currently available under international trade regimes, such as the European Union’s Everything But Arms (EBA) policy. These trade patterns have played a crucial role in driving Bangladesh’s export-led growth, particularly in the ready-made garments (RMG) sector, which accounts for more than 80 per cent of the country’s total exports and employs over four million workers, the vast majority of whom are women.

Bangladesh will face higher tariffs—12 per cent in some of the most valuable markets—if other trade facilitations are not realised. This directly threatens Bangladeshi products in the global market. In line with this, the government has doubled efforts to achieve the Generalized Scheme of Preferences Plus (GSP+) with the European Union, demanding rigorous compliance with labor, environmental, and human rights conventions.

Meanwhile, Bangladesh is also diversifying its export basket, shifting its focus from textiles to sectors such as ICT, pharmaceuticals, leather, and jute goods. Trade diplomacy has also been undertaken to sign new bilateral and regional trade agreements in Asia, Africa, and Latin America. Value addition is also being enhanced as factory standards are raised to international levels and production facilities are modernised, enabling Bangladesh to remain a competitive partner in evolving global supply chains.

Investment Climate: Though an LDC, Bangladesh benefited from concessional credits, technical assistance, and differential treatment in accessing international aid-for-trade program benefits. With these privileges now poised to end, the spotlight falls on domestic readiness and institutional strengths in attracting high-quality investment.
The government of Dr. Muhammad Yunus has drawn up a vision-led forward roadmap to decouple aid dependence and trigger investment-driven growth. The highest priority is being accorded to the following:

Policy Predictability. A coherent, transparent regulatory framework for reducing risk perceptions of investors.

• Infrastructure Upgradation: Significant investments in ports, power, and transport corridors to reduce logistics costs and improve efficiency.

• Economic Zones and Industrial Parks: Bangladesh Economic Zones Authority (BEZA) is fast-tracking the establishment of industrial enclaves with plug-and-play infrastructure and fiscal incentives.

• Digital Governance: e-registration, e-taxation, and single-window services are some of the measures being introduced to simplify investor procedures and eliminate bureaucratic barriers.

• Legal and Judicial Reforms: Measures are being taken to reform the enforcement of contracts, land acquisition, and arbitration processes to instill confidence in investors.

• In addition to these, Bangladesh is also actively wooing diaspora investment under special bonds and incentive programs while encouraging local entrepreneurs to improve their access to finance, training, and markets. These across-the-board reforms reflect the country’s need to consolidate its fragile investment success into a strong and durable foundation.

Creating Competitiveness for a Post-LDC Economy: As Bangladesh advances towards graduation from the LDC existence, national competitiveness is no longer a requirement—it is a strategic necessity. Graduation will put the country on a level playing field with advanced developing economies; hence, it is imperative to transition from low-cost to high-value, innovation-driven industries.

The RMG sector, the cornerstone of Bangladesh’s export economy for decades, must undergo structural changes. This involves investing in automation and digitalisation to improve productivity, adopting sustainable and ethical business practices to meet evolving consumer and regulatory demands, and advancing up the value chain by building design capabilities, enhancing branding, and diversifying product lines.

Garment non-appearing industries are emerging as new sources of competitiveness:

• Pharmaceuticals: Through high API (Active Pharmaceutical Ingredient) strength and export to over 150 export markets, the sector can become a $5 billion industry by 2030.

• Information and Communication Technology (ICT): Digital Bangladesh and the nascent tech startup ecosystem are driving exports in software, BPO, and digital services.

• Agro-processing: As the world demands more safe, traceable food, Bangladesh’s robust agricultural base can be leveraged through modern processing, packaging, and export chains.

• Shipbuilding and Light Engineering: With its skilled labor force and competitive production costs, Bangladesh is making promising progress in these sectors as a niche manufacturing hub.

To consolidate and scale up these gains, human capital development is crucial. The interim government is further investing in Technical and Vocational Education and Training (TVET), as well as academia-industry partnerships and digital literacy programs. Bangladesh’s demographic dividend, comprising more than 60 per cent of the population aged under 35 years, can be reaped only if the youth are future-proofed with the necessary skills. Additionally, the formation of the Dhaka-Chattogram Economic Corridor and improvements in connectivity with regional transportation networks are enhancing the efficiency of trade logistics. Customs modernisation, electronic certificates of origin, and integration into global value chains are also becoming a priority to reduce the time and cost of doing business. Bangladesh’s ability to transform its enormous potential into long-term competitiveness will shape its post-LDC success story. Innovation, diversification, and wise investment in systems and individuals will be the cornerstones of this advancement.

Strategic Readiness to Face a Post-LDC World: The interim government has proposed a national roadmap for readiness that outlines the key vulnerabilities and opportunities associated with graduation from LDC status. These are:

• Institution Building: Establishing a robust institutional setup of trade policy, intellectual property rights, and alternative dispute resolution mechanisms.

• Human Capacity Development: Initiating national vocational and technical education programs to bridge the skills gap and meet global labor market needs.

• Innovation Ecosystem: Promoting research and innovation by industry-university partnerships and startup incubation centers.

• Green Industrial Policy: Enabling sustainable industrialization by green finance, eco-labelling, and low-carbon production methods.

• Social Protection: Enhancing the social protection system to include the poor and vulnerable in the economic transformation process.

The interim government is also leveraging international goodwill to secure strategic partnerships with countries and multilateral organisations for dignified and graceful graduation.

Conclusion: Graduation from LDC status is not a ceremonial upgrade; it is a landmark in the growth history of Bangladesh. It sires global respect but also demands institutional strength, fiscal resilience, and vision-oriented governance. The path ahead will require astute policymaking, economic inclusiveness, and collaboration in the public, private, and international sectors. Together, with determination, Bangladesh can turn this transition into an opportunity—not only to consolidate its previous achievements but also to leap ahead as a proud, self-sustaining, and competitive middle-income country. As Bangladesh steps into the global scene with a fresh image, let it not forget: the fight is far from won, but the promise of a better, more honourable tomorrow has never appeared so within reach.

Dr Serajul I Bhuiyan is a professor and former Chair of the Department of Journalism and Mass Communications at Savannah State University, Savannah, Georgia, USA.​

 

[Saif]

https://thefinancialexpress.com.bd/economy/ca-chairs-high-level-review-meeting-on-bangladeshs-ldc-graduation

CA chairs high-level review meeting on Bangladesh’s LDC graduation

Published :
Jul 30, 2025 14:14
Updated :
Jul 30, 2025 14:14

A high-level review meeting on the country's preparation for graduation from Least Developed Country (LDC) status to a developing country was held today, with Chief Adviser Professor Muhammad Yunus in the chair.

The meeting took place at the Chief Adviser’s Office (CAO) in Tejgaon, Dhaka, BSS reported, citing Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder.​

 

[Saif]

Experts suggest delaying LDC graduation

Experts on Monday at a discussion suggested delaying the country's LDC graduation until it is ready to absorb the shock after the graduation happens. Giving instances of some other countries, they also said Bangladesh can delay the deadline for its transition from a least developed country

thefinancialexpress.com.bd

Experts suggest delaying LDC graduation

FE ONLINE REPORT
Published :
Aug 11, 2025 20:12
Updated :
Aug 11, 2025 20:12

Experts on Monday at a discussion suggested delaying the country's LDC graduation until it is ready to absorb the shock after the graduation happens.

Giving instances of some other countries, they also said Bangladesh can delay the deadline for its transition from a least developed country (LDC) to a developing one, as this is not a difficult process.

Bangladesh’s major export destinations are the US and EU countries, which would face higher tariffs if the country is graduated.

They made the suggestions at the discussion styled “the impact and challenges of Bangladesh's transition from the LDC list” at the Press Institute (PIB) in the city, jointly organised by an international research organisation Third World Network (TWN) and Nagorik Uddyog (The Citizen's Initiative).

Senior researchers of TWN Sanya Reid Smith and Ranja Sengupta, Taslima Jahan, a lawyer and intellectual property law expert at the Supreme Court, spoke at the event, among others.

They said Bangladesh can submit a delay request at any point before the final approval stage at the General Assembly in the LDC transition process.

Sanya Reid Smith said many countries have extended the deadline for LDC graduations, with some having a longer pause.

Countries like Myanmar and Timor have delayed the graduation, citing political or economic reasons despite meeting the criteria at the UN committee level, she stated.

Bangladesh has seen some major events that affected the local economy, while there have been changes in domestic and international politics and trade, she added.

The decision to graduate was taken during the previous government. Subsequently, there have been major changes in the local politics and economics, the experts highlighted.

Furthermore, the US President Donald Trump's tariff policy has created the biggest global trade shock in the last 200 years. These issues were not known when the decision was made on Bangladesh's LDC graduation, Ms Smith underlined, adding that “all those changes create a rationale for Bangladesh to delay the LDC. Now the Bangladesh government has to decide whether they want this.”

The experts also said Bangladesh will lose some important economic benefits with the LDC transition. Bangladesh can now produce and export new drugs without intellectual property restrictions in the pharmaceutical industry.

After the transition, patents will be mandatory on these drugs, which may reduce investment and make the drug costlier.

Sengupta said at least nine countries have postponed the LDC transition deadline in the past decade.

“Transition does not only mean meeting the per capita income criteria; rather, it is important to consider whether it can survive in the competition after losing duty-free benefits in the international market. Therefore, it is risky to rush if you are not prepared,” she added.

Taslima Jahan said that as an LDC, Bangladesh used to enjoy some special relaxations or exemptions in intellectual property rights (IPR). After the LDC transition, these benefits will gradually be limited or discontinued.​