Bangladesh’s government and business leaders have jointly called for a three-year deferral of the country’s graduation from the Least Developed Country (LDC) category, arguing that additional time is needed to ensure a smooth and sustainable transition.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed strong support for the proposal, saying a delay would allow the country to develop a comprehensive roadmap and complete critical reforms.
In a statement, the trade body said coordinated efforts between the public and private sectors could strengthen industrial capacity and build a more resilient economic foundation.
The government has already formally requested the United Nations to shift Bangladesh’s graduation timeline from 2026 to 2029.
The issue was discussed at a virtual consultation held on April 29 by the Committee for Development Policy (CDP), where a Bangladeshi delegation presented its case.
The delegation was led by Commerce Minister Khandaker Abdul Muktadir, alongside Economic and Planning Adviser Rashed Al Mahmud Titumir and State Minister for Planning Zonaed Saki.
Senior officials from the Bangladesh Investment Development Authority (BIDA) and the Economic Relations Division (ERD) were also present.
Representing the private sector, a BGMEA delegation led by its president Mahmud Hasan Khan joined the consultation, along with leaders from the leather and footwear exporters’ association, the pharmaceutical industry association, and the Dhaka Chamber of Commerce and Industry.
Sources said the CDP sought clarification on the rationale behind Bangladesh’s request for an extension. In response, the delegation cited gaps in preparedness, slow progress in key reforms, and external shocks—including geopolitical tensions involving Iran, Israel and the United States.
Broader global economic uncertainty, domestic structural constraints, and challenges in the investment climate were also highlighted.
In its presentation, BGMEA warned of potential risks to duty-free market access, particularly under the European Union’s GSP+ scheme, where safeguard measures could limit future benefits.
The trade body also pointed to Bangladesh’s lack of sufficient free trade agreements compared to competitor countries.
The need for additional time to meet rules of origin requirements was also emphasised. Stakeholders stressed the importance of reducing the cost of doing business, ensuring policy stability, and improving the investment environment.
Participants cautioned that graduating without adequate preparation could adversely affect export earnings, employment, and overall macroeconomic stability.
Earlier, the ERD held consultations with key stakeholders to develop a unified national position on the issue. Officials expressed hope that the coordinated and evidence-based approach by both the government and private sector would yield a positive outcome for Bangladesh’s request.