LDC graduation: If Bangladesh seeks deferment, CDP's EMM offers a window, says Debapriya

Although Bangladesh is on track to graduate from Least Developed Country (LDC) status in November next year, confusion is deepening over whether it should defer the graduation, citing political upheaval that toppled the previous government and its overall impact on the country's economic and business landscape.

Commerce Adviser SK Bashir Uddin's recent remark describing Bangladesh's graduation from LDC status as a "time bomb" left behind by the previous government has added a further twist to the issue.

This represents a critical shift from the position adopted by the Cabinet of Advisers on 13 March, when it formally supported graduation.

Meanwhile, as a part of the Enhanced Monitoring Mechanism (EMM), a letter has been sent by the United Nation's Committee for Development Policy (CDP), which decides on countries graduation from LDC, to the countries graduating and recently graduated from the LDC status, about their progress and preparedness.

The CDP chair José Antonio Ocampo on 25 August wrote to the government of Bangladesh, along with others listed for graduation or already graduated recently, to report on their progress regarding implementation of their respective Smooth Transition Strategies (STS).

It sought an annual national report from Bangladesh as well to be submitted to the Committee by 31 October, 2025.

The General Assembly calls upon the CDP to continue due consultations with countries graduating and recently graduated from the LDC category while monitoring these countries, reads the letter.

"In this context," reads the letter, "representatives of the Government are cordially invited to the virtual consultation meeting with the CDP which is scheduled to take place between October and December 2025."

Beyond the traditional option of writing to the CDP or UNGA for a deferment of graduation timeline, the EMM provides an opportunity for countries to share their concerns, says Debapripya Bhattacharya, a member of the CDP.

The CDP's EMM monitors countries' progress on preparation for graduation. 

It reviews not only the basic three criteria, it also reports on a host of supplementary graduation indicators (SGI). The CDP will consider the EMM reports at its plenary in February 2026, informed Debapriya, who leads the EMM.

He suggested that if the country is really serious and feels there are "unanticipated" and "unmanageable" development which demands more time for preparation, that should be reflected in the country report.

"How Bangladesh explains its situation in its report will have a strong bearing on the country's request for a deferment, if any," Debapriya, also distinguished fellow at the Centre for Policy Dialogue (CPD), told The Business Standard yesterday (14 September).

However, he suggested that the decision to request for such a deferment of Bangladesh's exit from the LDC group has to be very well-thought-out, based on compelling empirical evidence and should have political support from the international development partners.

The government seems unwilling to request a deferment.

"It is not possible to defer Bangladesh's graduation from the LDC category," Chief Adviser's Special Assistant Anisuzzaman Chowdhury categorically told a business audience in Dhaka on Saturday.

Amid concerns voiced by business leaders and experts about the country's readiness at the same event, he said that the interim government has "no intention of delaying the LDC graduation process, nor does it have the scope to do so."

Asked what would be the interim government's response to the CDP's letter, Anisuzzaman Chowdhury told The Business Standard yesterday, despite the fall of the previous government, Bangladesh has not faced a situation similar to Vanuatu's, where a government collapse was followed by natural calamity.

"How can we say Bangladesh is not prepared? How can we make them believe since economic indicators are not secret things?" he asked.