Bangladesh considers delaying LDC graduation amid economic concerns

Bangladesh is officially scheduled to transition from a Least Developed Country (LDC) to a developing nation on November 24, 2026.

However, the government is now considering delaying this transition due to concerns over the country‍‍`s economic preparedness. 

While the interim government is working towards pushing the date back, simply requesting a delay won’t be enough. 

The Bangladesh government plans to appeal to the United Nations Committee for Development Policy (CDP) for a postponement.

Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser for the Ministry of Finance, revealed this information during a briefing held at the Secretariat on Tuesday, March 11. 

He explained that the government is initiating steps to reconsider the timeline for LDC graduation.

Before the briefing, Anisuzzaman Chowdhury met with Finance Adviser Saleh Uddin Ahmed at his office. 

Chowdhury had been appointed to his new role just a day earlier on March 10.

During the briefing, key officials from the Ministry of Finance were present, including Shahriar Kader Siddiqui, Secretary of the Economic Relations Division (ERD), Nazma Mubarak, Secretary of the Financial Institutions Division (FID), and two additional secretaries from the Finance Division, Munshi Abdul Ahad and Mohammad Abu Yusuf.

Anisuzzaman Chowdhury announced that work has already started on drafting a comprehensive framework to reassess Bangladesh’s graduation from LDC status. 

A committee has been formed to oversee this process, led by M Siraj Uddin Mia, the Chief Secretary to the Chief Adviser, with ERD and FID Secretaries included as members.

Addressing the concerns over the upcoming transition, Chowdhury remarked, "We are heading towards becoming a developing country based on false data. There’s work to be done in this regard. Since 2010, our foreign dependence has grown, and our internal revenue sources have weakened. The tax-to-GDP ratio has fallen below 7%. If we are required to take more loans, we will face greater challenges."

In response to a question about whether the indicators for Bangladesh‍‍`s LDC graduation were misleading, Chowdhury responded, "Let’s assume all the data is accurate, but what about our preparation? Around 85% of the benefits we currently enjoy come from the ready-made garment sector. We need to diversify our exports. Since 2018, we’ve been talking about LDC graduation. Why hasn’t our reliance on this one sector decreased over the past seven years?"

When asked if the country’s LDC graduation could be postponed, Chowdhury said, "We haven’t reached a decision on that yet. We need to sit down with business leaders and garment industry owners before making a final decision. I can’t say for sure right now."

Finally, when questioned about whether Bangladesh has the power to delay its LDC graduation independently, Chowdhury clarified, "It’s not entirely in our hands. However, we can request a reconsideration from the UN. We’ll need to present valid reasons and a credible framework with the appeal. That’s the direction we are heading."

The government’s move to reassess the LDC graduation date is driven by concerns over the country‍‍`s economic vulnerabilities and the need to strengthen its readiness before transitioning to a developing nation.