Uncertainty Grows Over Bangladesh’s LDC Graduation as UN Postpones Assessment Visit

A United Nations delegation was scheduled to visit Dhaka this month to review Bangladesh’s overall preparedness for graduation from the Least Developed Countries (LDC) list and to present its assessment of the country’s position. At the same time, a schedule had been set to present an independent preparatory assessment report on LDC graduation on January 21. However, the delegation’s visit to Dhaka has been postponed for the time being even before the trip took place. No new date has yet been fixed.

Sources say that the delegation was supposed to arrive in Dhaka under the leadership of Rabab Fatima, United Nations Under-Secretary-General and Secretary-General of the Fifth UN Conference on LDCs. Ahead of the national parliamentary election, the interim government has informed that it has decided not to hold the visit at this time. Sources at the Ministry of Commerce and the Economic Relations Division say that the delegation may visit Bangladesh next month after the elected government assumes office.

With the objective of assessing Bangladesh’s macroeconomic stability, the possible impacts of graduation from LDC status, and preparing a roadmap for smooth implementation of graduation strategies, the United Nations collected opinions and documents from various ministries, divisions, and agencies last November. Based on this information, the final preparatory assessment report has been prepared. Concerned officials hope that although the Dhaka visit has been postponed, the assessment report will be sent to Bangladesh within the scheduled timeframe.

When asked about the matter, Commerce Secretary Mahbubur Rahman said, “Just because the United Nations is not coming this time does not mean they will not come later. However, we will receive their assessment report. After that, the remaining process will move forward gradually.”

Meanwhile, business leaders have been demanding a postponement of LDC graduation, citing preparation gaps. Once Bangladesh exits the LDC category, it will no longer enjoy duty-free trade benefits under the World Trade Organization framework. As a result, the country’s exports could decline by 6 to 14 percent, according to concerns.

Officials of the Ministry of Commerce say that the United States’ position on LDC issues is not favorable. Moreover, within the European Union, if any one of the 27 member states raises an objection, it is treated as a collective objection. On August 24, 16 business organizations—including the Federation of Bangladesh Chambers of Commerce and Industry, the Bangladesh Garment Manufacturers and Exporters Association, and the International Chamber of Commerce Bangladesh—jointly demanded postponement of LDC graduation at a press conference. The government has already conveyed this demand to the United Nations. However, the interim government has not yet received any indication from the United Nations regarding postponement.

On the other hand, Laos and Nepal have not taken any initiative to delay their graduation from LDC status. According to the current target, Bangladesh is scheduled to graduate from the LDC category on November 24 this year. However, business leaders remain firm in their demand to delay graduation.

Since assuming office, Chief Adviser’s Special Assistant Anisuzzaman Chowdhury has been saying that LDC graduation will take place in 2026. According to him, the interim government will not apply for postponement of graduation; an elected government may take a decision on the matter if it wishes. On this issue, Anisuzzaman Chowdhury said, “They had proposed holding a large conference involving the Advisory Council. We said that with the parliamentary election ahead, it would not be possible to do so within a short time.”

Regarding the demands of business leaders, he further said, “There is nothing we can do about this. We can wait and see what the elected government does. However, the matter will go through a technical committee and then to the United Nations General Assembly. Securing 51 percent of the votes in favor of postponement is not an easy task.”

If approval is obtained from the United Nations General Assembly, Bangladesh will formally graduate from the LDC category on November 24, 2026. Earlier, in 2018, Bangladesh achieved eligibility for graduation by meeting the criteria in three indicators—per capita income, human assets, and climate and economic vulnerability. Following the 2021 review, the Committee for Development Policy recommended Bangladesh’s graduation from LDC status in November 2026.

Former president of the Bangladesh Knitwear Manufacturers and Exporters Association, Md. Fazlul Haque, said, “We want this graduation to be postponed by at least three years, because we have preparation gaps.” When asked whose gaps these are, he replied, “There are gaps among businesses in technical education and productivity enhancement. However, the government’s gaps are larger. In the club we want to enter, others have bank loan interest rates below 5 percent, while ours is nearly 15 percent. Others have uninterrupted electricity and energy supply, while we face uncertainty. There are also deficits in governance and infrastructure. With so many problems, what benefit do we get from graduating from LDC status in name only?”