Justification, plan needed to defer LDC graduation

If Bangladesh wishes to defer its graduation from Least Developed Country (LDC) status, it must submit a formal application with a clear justification and a detailed action plan, a visiting United Nations team told the government yesterday.

The UN team outlined the possible process for such an application at a meeting chaired by Economic Relations Division (ERD) Secretary Shahriar Kader Siddiky, which included representatives from various ministries.

The government has not submitted any proposal for the deferral as of now, a finance ministry official told The Daily Star on condition of anonymity.

The team noted that the country's graduation was previously postponed by two years due to the Covid-19 pandemic. If Bangladesh now seeks a further delay of up to three years, the reasons must be clearly specified, and a comprehensive action plan provided to address existing challenges.

Bangladesh is currently scheduled to graduate from an LDC to a developing country in November next year. The UN visit comes amid calls from local businesses to seek an extension, even though the interim government has repeatedly said it intends to adhere to the original timeline.

The high-level team is led by Roland Mollerus, acting director of UN-OHRLLS – the UN office that supports least developed, landlocked and small island nations. Composed of officials and independent experts, it is here to conduct a ground-level evaluation.

During the meeting, ERD officials presented the government's Smooth Transition Strategy (STS) and its monitoring framework. They also highlighted the National Tariff Policy, which is being operationalised, and ongoing reforms within the National Board of Revenue (NBR) to strengthen revenue collection.

However, ministry representatives also acknowledged several challenges, particularly the slow progress in export diversification.

As part of Bangladesh's Graduation Readiness Assessment, the UN team has distributed questionnaires to ministries, private sector representatives, academics, and research institutions. The questions cover the country's preparedness for LDC graduation and potential post-graduation challenges. The team will prepare its evaluation report based on the responses.