No clear diplomatic path to defer LDC graduation: Economists

Despite growing calls to postpone Bangladesh's graduation from the Least Developed Country (LDC) category, economists said there is no diplomatically clear way to seek a deferral as such a request must be backed by transparent data — and Bangladesh already exceeds the threshold in all three graduation criteria.

Speaking at a seminar on LDC graduation organised by the Bangladesh–Malaysia Chamber of Commerce at a city hotel today (9 November), they said that while business leaders may prefer a delay to retain trade benefits, Bangladesh should treat the transition as an opportunity rather than a burden.

In his keynote address, Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said, "We are in a critical phase politically and economically. Political stability could ease some challenges. But the LDC graduation narrative has shifted from celebration to concern. 

"A deferral is not morally or diplomatically certain because it must be based on transparent information. We already perform well in all three indicators, and applying for an extension could project weakness abroad and undermine investor confidence."

Khandaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), echoed the sentiment, saying, "We are fully ready for the transition. This is a structural shift, not an emotional one. If we are not ready now, we never will be. We have overcome major issues in labour, customs and security before — this should be seen as an opportunity."

However, Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), argued that additional time could help prepare better amid global volatility.

"The world is facing unexpected challenges. The WTO itself is struggling. We need at least three more years," he said.

Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury Parvez supported calls for a postponement, noting that both the government and private sector need more preparation.

"Business costs are high — logistics, fuel prices, and interest rates are rising. We need time to address these issues," he said.

BGMEA President Faruque Hassan added, "We are not against graduation. We only seek time to strengthen our readiness. Exports have declined over the past three months and may drop further due to reduced global demand."

Zaidi Sattar, chairman of the Policy Research Institute (PRI), said political instability, coupled with global uncertainty, has made the situation more complex.

"Even if deferral is uncertain, we can still explore the option," he added.

Addressing the event, Commerce Secretary Mahbubur Rahman said Bangladesh will have three years to adjust even after graduation.

"We have requested a review of our situation. A three-member team will visit soon to consult with our trade partners," he said, adding that discussions are underway with South Korea, Europe, and Australia to secure free trade agreements.

"Transition is a reality. We are negotiating to retain benefits for another three to five years, but graduation will still happen — likely by 2031," he said.