Bangladesh has formally requested a three-year deferral of its graduation from the Least Developed Country (LDC) category, citing global and domestic economic shocks that have slowed preparation for the transition.
According to officials of the Economic Relations Division (ERD) of Bangladesh Government, a letter signed by ERD Secretary Md Shahriar Kader Siddiky was sent on 18 February to Jose Antonio Ocampo, chair of the United Nations Committee for Development Policy. The committee is scheduled to meet from 24 to 28 February to review the request.
The government said Bangladesh still meets all three graduation criteria – per-capita income, human assets and economic vulnerability – but the five-year preparatory period has been disrupted by overlapping crises. These include the Covid-19 pandemic’s lingering effects, the Russia-Ukraine war’s impact on energy and food prices, tighter global financial conditions, and instability in international trade.
The letter also cited domestic financial sector weaknesses, pressure on foreign exchange reserves, declining investment and slower job creation. The burden of hosting forcibly displaced Myanmar nationals and political changes in 2024 further strained public finances and diverted focus toward short-term economic stabilisation.
Officials warned that graduating under the current timeline could hurt exports – particularly the readymade garment sector – due to uncertainty over future trade preferences, including possible ineligibility for the EU’s GSP+ facility.
Bangladesh has therefore requested extending the preparatory period until November 2029 under a crisis-response provision, saying it would allow time to stabilise the macroeconomy, complete reforms and ensure sustainable graduation.
An initial assessment report may be prepared within two weeks after the February meeting. The committee will then submit recommendations, while the final decision will be taken by the United Nations General Assembly, likely by September or October, officials said.
