Bangladesh gets 3 more years for LDC graduation

UN body responds positively to the country's request to extend LDC transition until 2029

The United Nations has responded positively to Bangladesh's request to delay its graduation from the least developed country (LDC) category to the developing country group by three years.

The Ministry of Finance disclosed the development in a media statement on Tuesday, saying the country had received a favourable response from the United Nations Committee for Development Policy (CDP).

According to the statement, the UN body communicated its supportive position in response to Bangladesh's formal appeal to extend the LDC graduation preparation period until Nov 24, 2029.

The ministry said, “CDP Chairman Prof Jose Antonio Ocampo informed the government that it would be appropriate for the UN General Assembly to extend the preparation period for Bangladesh’s LDC transition in line with the committee’s assessment.

“However, Bangladesh will need to make significant progress in key domestic reform efforts to address its existing structural weaknesses during this time.”

Bangladesh’s transition process from the LDC status began in 2018. The final transition preparation period was supposed to end in 2024.

But due to the COVID-19 pandemic, the deadline was extended by two years. As per the plan, Bangladesh is supposed to exit the LDC list on Nov 24.

As a least developed country, Bangladesh is receiving duty-free and quota-free benefits in the European export market. Those benefits will no longer be available if it is upgraded to a developing country.

During the interim government tenure, businessmen repeatedly demanded the postponement. On Aug 24, 2025, leaders of 16 leading trade organisations called for the transition to be deferred by up to five years.

The additional time is needed to prepare for the loss of duty-free trade benefits after the transition, to deal with the crisis in the pharmaceutical and ready-made garment industries, and to overcome the current economic challenges.

However, the interim administration did not take any initiative to address the issue.

A day after assuming the office, the BNP government wrote to the UN requesting a three-year extension of the preparation period for the LDC transition.

Prime Minister Tarique Rahman sought personal cooperation from the UN secretary-general on Apr 6.

The finance ministry said the CDP in its assessment found that Bangladesh has significantly exceeded the thresholds set in each of the three LDC transition indicators and the risk of falling behind in the near and medium term is very low.

"However, the recent West Asian crisis, uncertainty in the global energy and supply system, changes in the international trade environment and global challenges may impact the implementation of the country's transition preparations," it added.