UN to assess Bangladesh's LDC graduation readiness independently
On 25 September, the government wrote to the United Nations requesting an independent assessment of Bangladesh’s readiness for LDC graduation, the current economic situation, and potential post-graduation external shocks and vulnerabilities
Highlights:
- Bangladesh will not delay LDC graduation, seeks UN readiness assessment
- UN-OHRLLS to deliver independent report on preparedness by December
- Business groups urged three-year delay; government, economists oppose postponement
- Bangladesh met all UN graduation criteria since 2018
- Assessment will include ministries, private sector, civil society, and partners
- Graduation set for November 2026; key export privileges to continue post-2026
In response to business leaders' calls to delay Bangladesh's LDC graduation, the government has decided not to postpone the process but to commission an independent assessment through the United Nations to evaluate the country's preparedness, identify external risks after graduation, and boost confidence.
On 25 September, the government wrote to the United Nations requesting an independent assessment of Bangladesh's readiness for LDC graduation, the current economic situation, and potential post-graduation external shocks and vulnerabilities.
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Responding to the request, the United Nations Office of the High Representative for the Least Developed Countries (UN-OHRLLS) agreed on 29 September to carry out a comprehensive and impartial analysis of Bangladesh's graduation preparedness. It has committed to submitting the report to the government by December, according to a letter sent to Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), which The Business Standard has seen.
In a letter signed by Rabab Fatima, Under-Secretary-General and High Representative, and Secretary-General of the 5th UN Conference on LDCs, it said, "The assessment will aim to deliver a comprehensive and impartial analysis, identifying potential risks, evaluating resilience to external shocks, and ascertaining or reinforcing confidence that Bangladesh's graduation will be both smooth and sustainable."
Bangladesh is scheduled to graduate from LDC status on 24 November 2026. However, several major business associations have been strongly urging the government to delay the process by at least three years. BNP and Jamaat-e-Islami leaders are also reportedly supportive of this demand.
Government officials and economists, however, argue that since Bangladesh has met all three required criteria – per capita income, human resource development, and economic vulnerability – since 2018, there is little chance the UN would accept any request for deferral.
As business leaders remain unconvinced by the government's explanation, it (the latter) has opted for an independent assessment through the UN. ERD officials expect the report to be released by December.
The ERD wrote to the UN on 25 September formally requesting such an assessment.
the steering committee on LDC graduation, chaired by Chief Adviser Dr Muhammad Yunus, is scheduled to meet on 8 October.
When asked, Finance Adviser Dr Salehuddin Ahmed told The Business Standard, "It's too early to comment. If we do, businesses may stop their preparations. The current government will not seek to delay LDC graduation. We are focusing on implementing a smooth transition strategy."
In her letter, Rabab Fatima wrote, "With appreciation of the government's request for UN-OHRLLS to facilitate an independent graduation readiness assessment in support of your preparations, my office will be pleased to undertake this important exercise."
She added, "The assessment will be conducted in a transparent, inclusive, and consultative manner, engaging all relevant stakeholders – including the ministries concerned, the private sector, civil society, and development partners."
Rabab Fatima mentioned that Ronald Mollerus, director of UN-OHRLLS, will serve as the focal point for the process and work closely with the Bangladesh government and partners to ensure the assessment is timely, effective, and aligned with national priorities.
UN asked Bangladesh to submit a report on its progress toward LDC graduation by 31 October. ERD officials said Bangladesh would present its economic situation to the UN within the deadline
ERD officials said that while business leaders have recently demanded to delay graduation, this would be difficult though not impossible. However, the interim government has not held any formal discussions with the UN about a possible extension.
Officials added that the interim government is unlikely to submit any such request and intends to leave the matter to the next elected administration.
Earlier, Chief Adviser's Special Assistant Anisuzzaman Chowdhury said Bangladesh would gain nothing by requesting a delay since it has already met all three criteria. "The current government is not interested in applying for an extension. The next elected government may decide otherwise," he said.
He added that garment exporters received Tk14,000 crore in incentives and different other areas in the last fiscal year. "Once Bangladesh graduates, they will no longer be eligible for such support. That's why business associations are demanding a delay," he explained.
Meanwhile, the steering committee on LDC graduation, chaired by Chief Adviser Dr Muhammad Yunus, is scheduled to meet on 8 October. The meeting is expected to discuss both the progress of LDC graduation preparations and the proposal to delay graduation. The committee includes representatives from FBCCI, BGMEA, and other business organisations.
ERD officials noted that LDC graduation has no bearing on Bangladesh's duty-free export access to the US market. On the other hand, the European Union will continue duty-free access until 2029, while Canada, the UK, China, Japan, and Australia will also maintain similar privileges. Therefore, they believe there is no reason for concern over export disruptions after graduation.
Earlier, the UN asked Bangladesh to submit a report on its progress toward LDC graduation by 31 October. ERD officials said Bangladesh would present its economic situation to the UN within the deadline.
They added that the report is being prepared according to UN requirements, with a draft expected within a week for stakeholder feedback before final submission.
