Govt continues preparations for LDC graduation

The interim government is continuing the process of graduating from the least developed country (LDC) status, with several committees currently working on the matter.

"We will keep carrying out tasks that facilitate LDC graduation," said Monzur Hossain, a member of the General Economics Division.

He added that a high-level expert committee, a steering committee headed by the chief adviser, and another committee led by the principal secretary are overseeing the process.

"To support this, some institutional reforms are already taking place, and discussions are underway about merging certain institutions," he said.

The chief adviser has instructed that progress reports on LDC graduation be submitted to him every two months. A stakeholder conference may also be held next month or later.

Hossain made the remarks at a seminar titled "Bi-annual economic state & future outlook of Bangladesh economy: private sector perspective" organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital today.

"Readiness for LDC graduation should not be confined to the government alone; it also requires active preparation from the private sector," he said.

According to him, graduation could create opportunities such as export diversification, supply chain optimisation, production of high-end products, and a more dynamic SME sector.

However, he noted that the final decision on LDC graduation will be taken by the next government.

"If we could accept Donald Trump's 20 percent tariff, we could overcome this challenge as well. Nepal is moving forward, and we will seek an extension of five or seven years, though that may not be possible. It would be good if the transition period could be extended, but even if it is not, we must remain prepared," he said.

He also pointed out that the latest economic census revealed that more than one lakh manufacturing units have disappeared.

Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, said Bangladesh may request an extension, but such a proposal must be approved by the United Nations General Assembly.

To justify the extension, the country would need to show weaker performance on three key indicators, he said.

Rahman explained that achieving a per capita income of $1,300 demonstrates readiness for graduation, whereas Bangladesh currently stands at over $2,800.

"So, even if we seek an extension, we must continue our preparations," he added.