Staff Reporter :
Focusing on Bangladesh’s upcoming graduation from the Least Developed Country (LDC) status, the Finance Ministry has established an inter-ministerial committee to develop an action plan aimed at enhancing the export capacity of key sectors, including leather and leather products, jute products, agricultural and processed agricultural goods, and pharmaceuticals.
Additionally, the committee will design a framework to promote other potential export sectors.
The committee will assess necessary support measures beyond cash incentives to strengthen the export capabilities of major industries apart from ready-made garments (RMG).
Md Hafizur Rahman, FBCCI Administrator and former Director General of the WTO Cell at the Ministry of Commerce, told the media that while various initiatives have been undertaken over the years to diversify exports, no dedicated committee has previously focused on these specific sectors.
Stakeholders believe that forming such a committee ahead of LDC graduation to introduce special incentives for emerging sectors is a well-timed and strategic decision.
Business leaders pointed out that LDC graduation is expected to have minimal impact on ready-made garment exports, as the sector currently receives low cash incentives.
The Generalised System of Preferences (GSP) facility will remain available in the European Union until 2029, after which Bangladesh can apply for the GSP Plus scheme.
However, Hafizur Rahman highlighted that other sectors—such as leather, jute, agriculture, and pharmaceuticals—receive significantly higher cash incentives, sometimes up to 15%.
Without alternative incentives, these industries may face export challenges once Bangladesh transitions out of LDC status in 2026. Therefore, the initiative to sustain and enhance the export capacity of these key sectors is highly commendable.
The committee, led by an additional secretary of the Finance Ministry, includes representatives from the Ministry of Commerce, Ministry of Industries, Bangladesh Bank, National Board of Revenue, Bangladesh Investment Development Authority, Bangladesh Trade and Tariff Commission, Export Promotion Bureau, and FBCCI.
According to sources, a preliminary report is set to be submitted by February 25.
The committee will identify barriers to expanding exports in these promising sectors and propose financial and non-financial policy measures to address them.
It will also evaluate potential challenges these sectors might face if export incentives are discontinued post-LDC graduation and suggest strategies to mitigate those risks.
