Bangladesh has formally started the process to defer its graduation from Least Developed Country status by three years, in a move that could reshape the country’s trade and industrial planning.
Commerce, Industries and Textiles Minister Khandaker Abdul Muktadir announced the decision on his first working day at the ministry on Wednesday.
Speaking to reporters, he said the government aims to extend the current graduation timeline and has already begun the groundwork. The Commerce Ministry will work closely with the Economic Relations Division to push the process forward quickly.
“We want to secure a three-year extension. Work has already started, and coordination with the ERD will continue to ensure progress,” he said.
Bangladesh is currently set to graduate from the UN’s Least Developed Country category in 2026.
The transition marks a major milestone in the country’s economic journey, reflecting steady growth in income, human assets and resilience indicators over the past decade.
Why the delay matters
Graduation would gradually end several international support measures Bangladesh now enjoys as an LDC. These include duty-free and quota-free access to many export destinations, special treatment under World Trade Organization rules and access to certain concessional financing windows.
The ready-made garment sector, which accounts for more than 80 per cent of export earnings, is expected to face higher tariffs in some markets after graduation, particularly in the European Union, unless alternative arrangements are secured.
Other export-oriented industries such as leather, pharmaceuticals and agro-processing could also see compliance costs rise.
Business leaders have long argued that a short extension would give industries more time to diversify markets, upgrade standards and strengthen competitiveness before preferences are phased out.
A strategic calculation
The government’s move comes at a time of global economic volatility, persistent inflationary pressure and ongoing stress on foreign exchange reserves. Policymakers appear keen to ensure a smoother transition rather than risk a sudden shock to exports and investment.
This is the first cabinet role for Khandaker Abdul Muktadir, who was recently elected as a member of parliament. State Minister Md Shariful Alam and Commerce Secretary Mahbubur Rahman were present at the briefing.
Md Shariful Alam, who also serves as Organisational Secretary of BNP’s central committee and president of the party’s Kishoreganj district unit, will assist the minister in overseeing the commerce, industry and textiles portfolios.
With the process now underway, attention will turn to how Bangladesh presents its case internationally and what domestic reforms it fast-tracks to prepare for life beyond LDC status.