Staff Reporter :
Business leaders have urged the government to come forward with necessary policy support amid challenges as Bangladesh is set to be graduated from the Least Developed Country (LDC) category in 2026.
They said LDC graduation is an important milestone that brings both opportunities and challenges.
FBCCI Administrator Md. Hafizur Rahman on Friday shed light on the challenges and opportunities related to Bangladesh’s graduation from LDC (Least Developed Country) status.
Speaking to the media, he said that although Bangladesh will face new challenges following the graduation, there will also be many more opportunities. He emphasized the need for product diversification, increased exports, and both domestic and foreign investment.
He further said that to ensure preferential market access after LDC graduation, initiatives must be taken to sign FTAs (Free Trade Agreements) and PTAs (Preferential Trade Agreements) with different countries. Since incentive facilities will be withdrawn, alternative forms of support must be provided to businesses after the graduation.
Former FBCCI President Mir Nasir Hossain and Sakif Shamim Vice-Presidential candidate in the upcoming FBCCI elections-told the media that there is a lack of preparation for the LDC graduation.
They emphasized the need to begin preparations immediately to tackle post-graduation challenges. Mir Nasir Hossain said to attract new investments and ensure a business-friendly environment, ‘ease of doing businesses’ is a crucial factor. He also highlighted a new potential challenge-Donald Trump’s retaliatory tariffs. Given the circumstances, Bangladesh will graduate from the list of LDCs next year. As a result, the duty-free and quota-free market access that Bangladesh currently enjoys in many countries as an LDC will gradually shrink.
“To overcome this challenge, preparations must begin now,” he said. “We have been addressing this issue in various meetings and seminars,” Mir Nasir Hossain said. “Our infrastructural problems are severe-particularly in gas, electricity, energy, and ports. These issues must be resolved.”
FBCCI Administrator Hafizur Rahman also said that to support the LDC graduation, it’s crucial to stabilize foreign currency reserves, maintain stable interest rates for private sector credit, and diversify exports.”
Sakif Shamim emphasized the urgent need for coordinated preparations from both government and private sectors to tackle post-graduation realities.
He warned that the country may lose many existing trade benefits after graduation, which could hurt exports. To counter this, Bangladesh must diversify its export base, improve competitiveness, increase revenue collection, ease trade procedures, and explore new markets.
As an LDC, Bangladesh currently enjoys preferential trade benefits, such as duty- and quota-free access under WTO and EU frameworks. Graduation will phase out these advantages, making Bangladeshi goods costlier and less competitive-particularly in sectors like apparel and pharmaceuticals.
Shamim highlighted several key challenges:
Loss of duty-free, quota-free access to major markets like the EU and Canada.
Increased tariffs (8-12%), especially on garments, which make up over 80% of export revenue. Reduced access to concessional loans and grants from development partners like the World Bank and ADB.
Compliance with stricter intellectual property rules (e.g., TRIPS) affecting the pharmaceutical industry.
Tighter environmental and labor standards demanded by global buyers.
Logistical inefficiencies and bureaucratic hurdles increasing the cost of doing business.
He called for urgent reforms and actions, including: Enhancing productivity and export competitiveness. Streamlining regulations and reducing corruption.
