The United Nations has agreed to review Bangladesh’s request to delay its graduation from the Least Developed Country (LDC) category by three years, though no final decision has yet been made.
The request will be examined by the UN Committee for Development Policy (CDP), which began a five-day meeting in New York on February 23. The committee will assess the justification provided by the Bangladesh government before making any recommendation.
CDP member and Head of its Enhanced Monitoring Mechanism (EMM) subcommittee, Dr Debapriya Bhattacharya, has confirmed the media that the committee has acknowledged receipt of Bangladesh’s letter.
However, he stressed that accepting the application for review does not mean the deferral has been approved.
He said the CDP will first assess the government’s arguments and then forward its recommendations to the UN Economic and Social Council (ECOSOC). The matter will subsequently go to the UN General Assembly for a final decision.
According to Bhattacharya, it may take several weeks for the CDP to reach a decision. The process will then move sequentially through ECOSOC and the General Assembly.
He added that the committee will assess whether Bangladesh is facing an “exceptional situation beyond its control” that justifies delaying graduation. “It is too early to say whether the CDP will recommend postponement,” he noted.
The EMM subcommittee is also scheduled to review the progress of countries that have either graduated or are in the transition phase. Currently, Bangladesh, Nepal, and Laos are awaiting graduation from LDC status.
A dedicated session will evaluate how far these countries have progressed and their readiness for graduation by the end of this year.
Under the existing schedule, Bangladesh is set to graduate on November 24 this year, with the third and final review process currently underway.
The newly formed government formally requested a deferral until November 24, 2029, just a day after assuming office. The request was sent on February 18 to CDP Chairman José Antonio Ocampo by Economic Relations Division (ERD) Secretary Mohammad Shahriar Kader Siddiky.
In its letter, Bangladesh said that although it continues to meet the three key criteria for graduation—per capita income, human assets index, and economic and environmental vulnerability index—the five-year preparatory period has been severely disrupted by multiple global and domestic shocks.
The government cited the prolonged impact of the COVID-19 pandemic, the Russia-Ukraine war, tensions in the Middle East, tight global financial conditions, and a slow recovery in international trade.
Domestic challenges highlighted include irregularities in the financial sector, the July 2024 uprising that led to a change in government, and ongoing pressure from hosting displaced Myanmar nationals.
The letter noted that these shocks have contributed to macroeconomic instability, slower GDP growth, high inflation, reduced public and private investment, pressure on foreign exchange reserves, and a decline in imports of capital machinery and raw materials—ultimately slowing job creation.
It also warned of post-graduation trade risks, including the potential loss of preferential access for garment exports to the European Union and the risk of countervailing duties from the United States.
Bangladesh has requested a three-year extension under the EMM’s crisis response provision to stabilise the economy and complete priority actions under its Smooth Transition Strategy.Officials said a preliminary assessment report could be prepared within two weeks of the February meeting, while the CDP’s observations and recommendations will follow later. The final decision, subject to approval by the UN General Assembly, is expected by September.