Staff Correspondent:

Bangladesh’s leading entrepreneurs and trade bodies on Sunday called on the government to seek five to six years  more before officially being graduated from the Least Developed Country (LDC) status as they said adequate preparation is needed to tackle post-graduation challenges.

“Our entrepreneurs and business chambers strongly support graduation. However, we stress the need for a 5-6 years’ extension. This will allow both the government and private sector to prepare properly avoiding potential problems,” said ICC Bangladesh President Mahbubur Rahman.

He made the remarks at a press briefing titled ‘LDC Graduation: Challenges Ahead’, organised by ICC Bangladesh in collaboration with major national trade organisations at a city hotel.

He emphasised the importance of diversifying Bangladesh’s export basket, developing human capital for Industry 4.0, attracting quality foreign direct investment (FDI) and building resilience in a volatile global economy.

“Successful graduation requires smart trade diplomacy to secure deals with the EU, the UK, Asean and Gulf countries to offset potential US tariff shocks. Reforms in financial governance, logistics, energy and technology-driven competitiveness are also essential,” he added.

Highlighting economic concerns, Rahman pointed to external debt stress, declining FDI, global trade tensions, currency devaluation, energy shortages and post-July 2024 economic pressures. “The debate is not ‘if’ we graduate, but ‘how we graduate,” he said.

He stressed that reforms, particularly in the financial and banking sectors, must be urgent but cannot happen overnight.

BGMEA President Mahmud Hasan Khan warned that the readymade garment sector, the biggest beneficiary of graduation, could suffer if the process is rushed.

ICC Vice President Naser Ezaz Bijoy said ongoing global supply chain disruptions, political instability, and climate vulnerabilities reinforce the need for an extension.

Bangladesh has already met the UN’s three criteria for graduation—Gross National Income, Human Assets Index and Economic Vulnerability Index—in two consecutive reviews, putting it on track for official graduation in November 2026.

Rahman cited examples of countries like Maldives and Vanuatu, which delayed their graduation due to economic and political realities, saying a similar approach could benefit Bangladesh.

Several top business leaders, including ICC Vice President A.K. Azad, DCCI Senior Vice President Razeev H Chowdhury, MCCI President Kamran T Rahman, FICCI Board Member Rubaba Dowla and BGMEA Vice Presidents, attended the briefing.

The LDC graduation process, overseen by the United Nations Committee for Development Policy (UN-CDP), allows eligible countries to move out of the LDC category after meeting income, human asset, and economic vulnerability benchmarks.

Graduating countries typically receive a three-year transition period to prepare for potential changes in trade access and concessional financing.