Bangladesh will graduate from the least developed country (LDC) category in November 2029 instead of November 24 this year, gaining three more years to prepare its economy for the loss of trade privileges and address structural weaknesses.
The UN General Assembly approved the postponement at a plenary meeting early Friday, following a recommendation by the UN Economic and Social Council (Ecosoc).
The decision, which also covers Nepal, was taken without opposition after Uruguay, on behalf of the Group of 77, placed the proposal. France, Canada and Ireland, speaking for the European Union, backed the extension but stressed the need for reforms in Bangladesh.
The BNP-led government formally sought the three-year extension in February, arguing that successive domestic and global crises had seriously undermined the country’s preparations for graduation.
It said the additional time was necessary to restore macroeconomic stability, consolidate ongoing reforms and implement priority measures under the Smooth Transition Strategy (STS).
The government cited the prolonged effects of the Covid-19 pandemic, the Russia-Ukraine war, volatility in global energy and food markets, tighter financial conditions and uncertainty in international trade.
Domestic challenges included irregularities in the financial sector, the political transition following the 2024 mass uprising and the unresolved Rohingya repatriation crisis.
The UN Committee for Development Policy (CDP), which assesses countries for LDC graduation, reviewed Bangladesh’s request and recommended that the proposed extension be placed before the General Assembly.
The Ecosoc endorsed the recommendation on July 21, paving the way for today’s final approval.
The extension offers Bangladesh a further three years to strengthen its economic foundations before losing the special benefits available to LDCs.
Graduation will mean the gradual withdrawal of preferential market access, including duty-free and quota-free facilities in several major export destinations. This could increase costs for exporters and expose domestic industries to tougher international competition.
The impact is expected to be particularly significant for the ready-made garment sector, which depends heavily on preferential access to major markets.
Bangladesh was included in the UN’s LDC list in 1975. The CDP evaluates countries every three years against three criteria: gross national income per capita, the Human Assets Index and the Economic and Environmental Vulnerability Index.
A country must meet the graduation threshold in at least two of the three indicators or achieve twice the prescribed income threshold.
Bangladesh qualified on all three indicators in the 2018 and 2021 assessments. In 2021, the UN recommended its graduation in 2024, which was subsequently deferred by two years because of the Covid-19 pandemic.
The latest decision adds another three years to that timeline.
The extended period will be crucial for improving export competitiveness, diversifying markets and products, strengthening institutions and implementing reforms to ensure a smooth transition to the post-LDC trading environment.