Deferral of LDC graduation not in government’s hands: Special assistant to CA

Business Report :

Delaying Bangladesh’s graduation from the least developed country (LDC) category is not entirely within the government’s control, as the country is firmly set to graduate by November 2026, Anisuzzaman Chowdhury, special assistant to the chief adviser said on Saturday.

“If Bangladesh seeks deferral, it would require approval from the majority of UN member states, which is unlikely as we have already met all three graduation criteria,” said Chowdhury, also emeritus professor at Western Sydney University and former UN-ESCAP director.

Speaking at a seminar hosted by the Economic Reporters’ Forum (ERF), he compared the graduation process to a plane’s take-off – initial readiness, turbulence, and mid-air adjustments.
Despite Covid-19 and subsequent economic shocks, Bangladesh met the criteria in 2018 and received official UN recommendation in 2021.

Bangladesh’s gross domestic product growth fell from 7.1 percent in 2022 to 4.2 percent in 2024, inflation hit 10.5 percent, and reserves dropped from $48 billion to $26 billion, Chowdhury said.

He blamed capital flight and macroeconomic mismanagement, citing a $234 billion outflow between 2009 and 2023 and the resulting $4.7 billion International Monetary Fund bailout.

He noted signs of recovery under a new economic team, as forex reserves rose to $31.8 billion, while garment exports to the US and EU increased by 25 percent and 18 percent respectively.
A Smooth Transition Strategy has been initiated to improve trade facilitation and logistics.

Citing Bangladesh’s $2,899 gross national income and stronger macroeconomic indicators than Nepal or Laos, Chowdhury said key markets like the EU, UK, and Canada would maintain trade preferences post-2026. He expects gains in pharmaceuticals, leather, and footwear, with 85 percent of drug prices remaining stable.

“If the private sector wants a delay, it must present evidence and logic,” special assistant to CA added.