Govt urged to defer the country's graduation from LDC as it lacks readiness 

Speakers from a diverse coalition of national and international stakeholders have urged the government to move a request to defer the country's graduation from the Least Developed Country (LDC) category, currently scheduled on 24 November 2026.

They made the call at a roundtable on "Bangladesh's LDC Graduation: Between Readiness and Reality," organised by the Change Initiative, a think tank, at a hotel in the city today (23 April).

They cited those significant economic headwinds amid recent political turmoil and potential severe negative impacts if graduates with insufficient preparedness.

Estiaque Bari, head of research of Change Initiative, underscored in his keynote presentation that Bangladesh's upcoming LDC graduation is likely to impact 71.5% of its exports, with projected tariff hikes of 8.7% in the EU, 9.1% in the UK, and up to 15.8% in Japan for key sectors like footwear and garments.

"As Bangladesh prepares to graduate, with 81% of its exports dependent on the RMG sector and tariffs set to rise across key markets and product segments in the absence of critical trade agreements, the risks extend far beyond just the loss of trade and financial preferences", he said.

Amir Khasru Mahmud Chowdhury, a standing committee member of BNP, said "Bangladesh stands at an inflection point, but the foundation of its development narrative is hollow—manipulated figures, collapsed financial institutions, and a dangerously narrow export base.

"LDC graduation cannot be built on broken systems. True transition demands people's representation in decision-making. Without democratic legitimacy, no milestone is meaningful," he added.

Zonayed Saki, chief coordinator of Ganosamhati Andolan, aligned with the perspective, "Graduation is inevitable-but the real question is: is today the right time? LDC status is not a matter of ego, it's a matter of readiness."

Sadia Farzana Dina, joint chief coordinator of National Citizen Party said that without reliable data, institutional reform, and a national dialogue, rushing this transition could threaten our economic survival.

"The consensus emerging from this critical dialogue is clear: proceeding with LDC graduation in 2026, under the current circumstances, poses unacceptable risks to Bangladesh's economic stability and development gains," said M Zakir Hossain Khan, chief executive of Change Initiative.

"LDC graduation is neither a badge of prestige nor a policy formality-it is a deeply political and structural shift", he observed.

Professor Mushtaq Khan of SOAS, University of London, commented, "LDC status is not a formality-it's a negotiated privilege tied to global protections. Bangladesh is on track to graduate, but without critical homework.

"We're exiting while our banking system remains broken, our power sector contracts are riddled with corruption, and our export competitiveness is hollow beyond garments", he said.

Representing the international business community, Nuria Lopez, chairperson, European Union Chamber of Commerce in Bangladesh, stressed the human cost and the imperative for government action, "Without an extension, 2.5 million unskilled workers risk being left behind as green industries rise. Bangladesh must set aside ego and prioritize workforce upskilling, productivity, and investment in R&D to ensure a just transition".