3 more yrs, but will BD deliver reforms
Bangladesh’s three-year postponement of its graduation from the least developed country (LDC) category offers valuable breathing space, but the country must use the extra time to address underlying economic vulnerabilities, economist Fahmida Khatun has said.
The United Nations General Assembly on Thursday approved a revised graduation date of November 24, 2029, instead of November 24, 2026, giving Bangladesh more time to prepare for the economic and trade-related consequences of leaving the LDC category.
Dr Fahmida Khatun, honorary fellow at the Centre for Policy Dialogue (CPD), welcomed the extension but cautioned that additional time alone would not resolve the country’s structural economic challenges.
The postponement should therefore be treated as an opportunity to strengthen economic fundamentals, improve competitiveness and prepare export-oriented industries for the potential loss of preferential trade benefits.
Bangladesh has benefited significantly from duty-free and quota-free market access and other trade preferences available to LDCs. The withdrawal of these benefits could raise export costs, weaken price competitiveness and put jobs at risk, particularly in the ready-made garment and textile industries.
The additional three years could help businesses improve productivity, meet international standards and prepare for a more competitive global trading environment. However, the benefits will depend on whether the government introduces and implements the necessary reforms during this period.
The UN resolution was adopted by consensus through a voice vote at a plenary meeting of the 81st session of the General Assembly in New York on Thursday. Uruguay introduced the proposal on behalf of the Group of 77 and China. Nepal was also granted a similar three-year extension.
Bangladesh formally sought the postponement on February 18, shortly after the BNP-led government assumed office. Prime Minister Tarique Rahman subsequently appealed to UN Secretary-General António Guterres in April for international support.
The government cited global economic uncertainty, geopolitical tensions, supply chain disruptions, energy-related risks and domestic economic challenges as reasons for seeking more preparation time.
In a statement on Friday, Bangladesh’s Permanent Mission to the United Nations described the decision as an important diplomatic achievement, saying the extension would help the country strengthen its economic capacity, diversify exports and prepare for the potential loss of international support measures and preferential trade arrangements.
Mahdi Amin, in a Facebook post on Friday, also credited the extension to government initiatives and sustained diplomatic engagement. He said the additional time would allow Bangladesh to make its economy, industries, businesses and workforce more competitive internationally.
France, Canada and Ireland, speaking on behalf of the European Union, supported the postponement while stressing the importance of structural economic reforms for a successful and sustainable graduation.
Bangladesh has been on the UN’s LDC list since 1975. It met the graduation criteria in 2018 and again in 2021, after which November 24, 2026, was set as its graduation date. The transition had previously been postponed because of the economic disruption caused by the Covid-19 pandemic.
The latest extension provides further time to prepare for the transition, but the challenge is to ensure that Bangladesh graduates from the category with a stronger economy, more diversified exports and greater resilience to changes in global trade.
The outcome will ultimately depend not on the postponement itself, but on whether the government uses the additional three years to deliver reforms that protect businesses, workers and livelihoods.
