Bangladesh has secured a three-year deferment of its graduation from the Least Developed Country (LDC) category through a coordinated, year-long incumbent government initiative involving all concerned authorities, including the Commerce Ministry, Economic Relations Division (ERD), Prime Minister’s Office, diplomatic missions, Bangladesh’s Permanent Mission to the United Nations, and business stakeholders.
The United Nations General Assembly adopted the proposal on October 29 (New York time), extending Bangladesh’s LDC graduation date to November 24, 2029.
The decision marks the culmination of sustained diplomatic engagements, formal negotiations, economic arguments, and consultations with international development partners undertaken by the government since February this year to secure additional preparation time for a smooth and sustainable graduation.
Coordinated National Effort
The three-year deferment represents the outcome of a coordinated national effort that brought together political leadership, economic diplomacy, inter-ministerial coordination, international negotiations, and private-sector participation.
Business organisations and exporters also contributed by explaining the potential implications of premature graduation for market access, export competitiveness, industrial production, and employment.
The additional three years will provide Bangladesh with an opportunity to strengthen its macroeconomic fundamentals, reform the banking and financial sectors, improve energy security, diversify exports, enhance industrial competitiveness, and negotiate new trade arrangements.
The government’s challenge now will be to translate the extended preparatory period into measurable reforms and stronger economic resilience before the revised graduation date of November 24, 2029.
Commerce Minister Khandakar Abdul Muktadir strengthened the initiative from his first working day in office on February 18, 2026, when he announced the government’s decision to seek a three-year extension in response to longstanding concerns raised by the business community.
The ERD initiated the formal process on the same day by sending a letter to the United Nations Committee for Development Policy (CDP), requesting an extension of Bangladesh’s preparatory period until November 24, 2029.
The government argued that domestic and international challenges had disrupted the country’s preparations and that additional time was necessary to stabilise the macroeconomic situation, advance structural reforms, and implement the priorities of a smooth transition strategy.
International Support-Building
The Commerce Minister took the issue to the international level during the 14th Ministerial Conference of the World Trade Organization (WTO) in Yaounde, Cameroon, where he led a six-member Bangladesh delegation from March 26 to 29.
On March 28, he sought the European Union’s support during a bilateral meeting with EU Trade Commissioner Maros Sefcovic on the sidelines of the conference.
Muktadir explained the need for additional preparation time and expressed optimism that the EU and other countries would support Bangladesh’s request. He also discussed the possibility of launching negotiations on a free trade agreement (FTA) with the European Union.
On April 5, the minister discussed the proposed extension with UN Under-Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) Rabab Fatima at the Planning Commission in Agargaon.
He explained that Bangladesh wanted to complete graduation through a planned and phased approach without exposing its economy, trade, and industries to unnecessary risks. He also emphasised the need for continued support from development partners to address post-graduation challenges.
The initiative received further momentum on April 6 when Prime Minister Tarique Rahman wrote to the UN Secretary-General, seeking his personal support for extending Bangladesh’s preparatory period.
On April 26, Muktadir sought Switzerland’s support during a meeting with Swiss Ambassador to Bangladesh Reto Renggli at the Secretariat. He highlighted the need for additional preparation to ensure a smooth and sustainable transition while discussing broader trade, investment, and economic cooperation.
CDP Consultation and Assessment
A major milestone came on April 29, when the CDP held a virtual consultation with a Bangladesh delegation led by Commerce Minister Muktadir.
The delegation included Prime Minister’s Adviser on Finance and Planning Dr. Rashed Al Mahmud Titumir, State Minister for Planning Md. Zonayed Abdur Rahim Saki, ERD Secretary, Commerce Secretary, Finance Secretary, Foreign Secretary, senior government officials, and business representatives.
During the consultation, Bangladesh presented its economic vulnerabilities, global uncertainties, structural barriers to investment, and limitations in completing preparations within the existing timeframe.
Business representatives highlighted concerns over market access, the absence of free trade agreements, production capacity, compliance with export requirements, and potential employment risks.
The delegation also referred to incomplete structural reforms, outstanding preparation requirements, and the economic consequences of the Iran conflict.
Following its assessment, the CDP communicated its positive response to the ERD Secretary through a letter on June 1. The ERD disclosed the development through a statement on June 2.
Diplomatic Campaign at the United Nations
Read nextEarly Winter Produce Hits Dhaka Markets at Steep Prices, Burdening Everyday ConsumersThe government subsequently intensified its efforts to build international support ahead of the decision by the UN Economic and Social Council (ECOSOC) and the General Assembly.
On July 2, the ERD, in cooperation with the Commerce and Foreign Ministries, organised a seminar at the NEC Conference Room in Agargaon to explain the rationale for extending Bangladesh’s LDC preparatory period.
Foreign ambassadors, high commissioners, development partners, business representatives, and researchers attended the event.
In his address, Muktadir said the additional time would help Bangladesh achieve a sustainable, stable, and effective economic transformation. He identified global trade volatility, geopolitical tensions, inflation, and supply-chain disruptions as major challenges affecting the country’s preparations.
During July, the Commerce Minister also held separate meetings at the UN headquarters in New York with ECOSOC President and Nepal’s Permanent Representative Lok Bahadur Thapa and ECOSOC Vice-President and Algeria’s Permanent Representative Amar Bendjama.
He outlined Bangladesh’s economic and political transition challenges, energy constraints, supply-chain disruptions, climate impacts, and global uncertainties.
He also explained how the additional period would help the country advance structural reforms, improve governance, strengthen the financial sector and infrastructure, and implement a comprehensive smooth transition strategy.
A significant diplomatic breakthrough came on July 21, when ECOSOC unanimously adopted a recommendation asking the UN General Assembly to take a decision on the requests from Bangladesh and Nepal to extend their preparatory periods before November 24, 2026.
Bangladesh’s then Permanent Representative to the United Nations Salahuddin Noman Chowdhury introduced the draft decision on behalf of the two countries.
The ECOSOC recommendation paved the way for the final consideration of the proposal by the General Assembly.
Government Outlines Reform Priorities
On July 29, Muktadir reiterated the importance of the extension at a seminar titled “Bangladesh’s Upcoming LDC Graduation: Navigating the Challenges of Sustainable Transition” at the ICMAB building in Dhaka.
He identified energy security, banking sector reforms, ease of doing business, and institutional capacity-building as key priorities for the additional preparation period.
The minister also stressed that the extension would allow Bangladesh to address structural weaknesses and complete necessary reforms rather than merely postpone the graduation date.
Joint Initiative with Nepal
A productive virtual meeting took place with Nepal’s new government, involving its Ministry of Commerce and the Chairman of the National Planning Commission, to discuss postponing LDC graduation. Both countries discussed effective joint measures to advance the process of deferring graduation from the LDC category through a coordinated initiative rather than pursuing it individually. Notably, Ambassador Lok Bahadur Thapa, Permanent Representative of Nepal to the United Nations, served as President of the United Nations Economic and Social Council (ECOSOC).
Formal Support from the G-77
Commerce Minister Khandakar Abdul Muktadir made a detailed presentation on Bangladesh’s position regarding the postponement of LDC graduation at an online meeting with the Group of 77 (G-77). Following the presentation and discussions, the G-77 formally confirmed its full support for Bangladesh’s initiative to defer LDC graduation.
Final Push Ahead of the UN Decision
On October 19, speaking at a seminar jointly organised by the Economic Reporters Forum (ERF) and the Bangladesh Foreign Trade Institute (BFTI) in Dhaka, Muktadir expressed optimism that the United Nations would settle Bangladesh’s request within October.
He said Bangladesh had moved to the ECOSOC stage after completing the CDP process and that relevant international stakeholders, including the European Union, had agreed to support the additional time.
He also said the government had submitted a time-bound action plan to the EU outlining how Bangladesh intended to utilise the extended period.
The minister emphasised the need to complete FTA negotiations with the European Union before graduation to address the country’s post-graduation trade challenges.
Later that evening, while responding to journalists at Sylhet Circuit House, he reiterated his expectation that the UN General Assembly would adopt the decision within October.
Finally, on October 29 (New York time), the UN General Assembly adopted the proposal to extend the LDC graduation preparatory periods of Bangladesh and Nepal by three years.
The decision allows Bangladesh to continue its preparations until November 24, 2029, instead of the previously scheduled date of November 2026.
— Daily Best News Desk • Fearless in the search for truth
Reported by Staff Reporter • Edited by the Daily Best News desk. Send corrections to [email protected].
