PM Tarique seeks time from UN for LDC graduation amid economic strain

Prime Minister Tarique Rahman has sought additional time from the United Nations for Bangladesh's graduation from Least Developed Country (LDC) status, citing current economic challenges.

In a letter sent to UN Secretary-General António Guterres, the prime minister said the country is going through a difficult economic phase and requires time to stabilise before completing the transition.

The letter highlights pressures from the global economic situation, rising import costs and strain on foreign exchange reserves, which have made economic stabilisation a priority.

The government, however, reaffirmed its commitment to graduating from LDC status and said it does not intend to move away from the process. 

Instead, it has sought temporary flexibility to allow the economy to recover and reach a more stable position.

Officials said the additional time would help strengthen the country's production sector, export capacity and overall economic structure, making the eventual transition more sustainable.

According to the Economic Relations Division, in the current global context, several countries are seeking policy flexibility to manage economic pressures, and Bangladesh's request is being viewed as a strategic step.

Here is the full letter:

"I have the honour to write to you at a pivotal moment in our national life, as my government has assumed office with a decisive and historic mandate following last February's landmark general election

"For far too long, Bangladesh endured the erosion of public institutions and a widening disparity in opportunity and development. Our people's resounding endorsement of us reflects their deep yearning for stability, justice and renewal. Guided by this confidence, we are committed to restoring the rule of law, strengthening democratic institutions, and pursuing inclusive development anchored in human rights, social equity and environmental sustainability. Among the most time-bound priorities is Bangladesh's scheduled graduation from the LDC category on 24 November 2026, as per General Assembly resolution 76/8. While graduation has long been a national aspiration, successive crises and an accumulation of internal and external challenges have compelled us to undertake a careful, evidence-based reassessment of our readiness and associated risks.

"Excellency, we fully share your view that graduation must be a reward, never a punishment. We also believe that sustainable graduation is not only a country-specific issue but is critical to the credibility of the United Nations development paradigm. We are the largest LDC in terms of population, GDP and merchandise exports. Our sustained progress has been driven in large part by LDC-specific international support measures, including duty-free and quota-free market access and flexibilities in areas such as intellectual property. The withdrawal of these measures upon graduation poses substantial development challenges with a real risk of reversing our development gains. You would kindly appreciate that, if a country representing nearly one-fifth of the total LDC population were to embark on an unsustainable post-graduation trajectory, it would raise fundamental questions about the robustness of the existing global framework.

"We have inherited a severely strained macroeconomic environment, marked by prolonged capital flight, limited access to finance for the private sector, a weakened capital market, financial sector vulnerabilities, rising poverty, and mounting pressure on the banking system. Most key macroeconomic indicators have shown a downward trend. These challenges have been compounded by overlapping shocks, including the lingering socio-economic impacts of the Covid-19 pandemic, climate-induced disasters such as the 2024 floods, and global price volatility driven by new geopolitical tensions, further constraining our fiscal space and institutional capacity. Since assuming office, the government has been actively engaged in stabilising the economy and addressing these pressing challenges with utmost priority. At the same time, Bangladesh continues to bear the humanitarian responsibility of hosting a large displaced Rohingya population, despite a decline in international support. We thank the UN-OHRLLS for underscoring many of these vulnerabilities very aptly in its Graduation Readiness Assessment. Furthermore, the IMF, in a recent report, noted continued inflationary pressures, growth deceleration and mounting structural risks, while recognising prospects for medium-term recovery through sustained reforms.

"Furthermore, consideration of Bangladesh's graduation is taking place at a time when we are confronted with massive energy challenges arising from ongoing conflicts. The International Energy Agency has expressed the view that the present energy crisis is worse than the twin oil crises of the 1970s, which rendered. The 1980s were a lost decade of development for developing countries. The current energy challenges have already put our economy under severe stress. Years of painstaking progress made by our people are at a grave risk of being reversed.

"Regrettably, most of the designated five-year preparatory period during the regime preceding the interim government went by without adequate progress on readiness efforts. Only in February last year was a Smooth Transition Strategy adopted. Naturally, its implementation remained limited given the short tenure of the interim administration and the immediate stabilisation tasks it was entrusted with.

"We are, therefore, in urgent need of a further extension to ensure a smooth, sustainable and resilient graduation in the spirit of General Assembly resolution 67/221. Accordingly, my government has already initiated the crisis-response process through a technical submission to the Committee for Development Policy (CDP), seeking a three-year extension in line with paragraph 284 of the Doha Programme of Action and the modalities of the CDP's enhanced monitoring mechanism.

"Excellency, graduation is not merely about meeting the prescribed criteria; it must be smooth, sustainable, and irreversible. Achieving this requires a coordinated, whole-of-the-international-community approach. Our government has set an ambitious goal in its election manifesto to transform Bangladesh into a million-dollar economy by 2034. We have already begun implementing this vision through well-defined, time-bound policies and strategies. In this context, an extension of the preparatory period is critically important to ensure that this transition is achieved in a stable and sustainable manner.

"With full confidence, we kindly seek your personal support in ensuring that our request receives due consideration across the United Nations system, including through transmission of this communication to the CDP and the President of ECOSOC. Let me reaffirm that our aim is not to avert the coveted graduation but to ensure that it is sustainable, resilient and truly irreversible."