Bangladeshi business leaders are urging the government and international partners to extend the country’s transition period for graduation from Least Developed Country (LDC) status by three to five years, citing concerns over economic preparedness and stability.
The call was made at a high-level seminar organized by the International Chamber of Commerce, Bangladesh (ICCB) on Thursday at the Sheraton Hotel in Dhaka. Titled “Graduation from LDC: Exploring Policy Options for Bangladesh,” the event brought together prominent figures from the private sector, banking, export industries, and leading research institutions.
Addressing the gathering, ICCB President Mahbubur Rahman affirmed the business community’s support for LDC graduation but stressed the need for a longer, more strategic transition to ensure sustainability.
“We welcome the milestone of LDC graduation, but we must be realistic about our readiness,” he said. “Adequate preparation is essential to navigate the challenges that lie ahead.”
He highlighted that ongoing political uncertainty—from August 2023 through the upcoming national elections in February 2026—has already weakened investor confidence. Citing recent data, he noted a 13% decline in foreign direct investment (FDI) in 2024 compared to the previous year.
Mahbubur Rahman outlined five critical reasons for extending the transition period:
Secure favorable trade terms after losing LDC-based preferences Diversify exports beyond the ready-made garments sector Develop skilled human capital for industrial growth Attract and retain foreign investment in a competitive global market Strengthen institutional capacity and build resilience against climate changeHe warned that post-graduation, Bangladesh’s exports could face an average tariff increase of up to 12%. Without secured preferential access—such as the Generalized Scheme of Preferences (GSP)—the country’s export volume could decline by 6% to 14%.
Sanya Reid Smith, Legal Adviser and Researcher at the Third World Network (TWN), delivered the keynote presentation, shedding light on the legal, economic, and trade-related risks of premature graduation. She emphasized the importance of safeguarding policy space and ensuring equitable global market access.
The event drew top industry leaders, including A.K. Azad, former President of FBCCI and MD of Ha-Meem Group, Mahmud Hasan Khan, President of BGMEA, Syed Nasim Manzur, President, Leather Goods & Footwear Manufacturers & Exporters Association and Abdul Hai Sarker, Chairman, Bangladesh Association of Banks (BAB), Naser Ezaz Bijoy, CEO, Standard Chartered Bank, Bangladesh.
Among others, Dr. Zaidi Sattar, Chairman, Policy Research Institute (PRI), Dr. Fahmida Khatun, Executive Director, Centre for Policy Dialogue (CPD), Dr. Selim Raihan, Executive Director, South Asian Network on Economic Modeling (SANEM), and Masrur Reaz, Chairman, Policy Exchange Bangladesh were present on the occasion.
The seminar concluded with a strong consensus on the need for a phased, well-supported transition strategy to protect Bangladesh’s economic momentum and global competitiveness after LDC graduation.
