Dhaka, Feb 20 (.) The Government of Bangladesh has formally sought a three-year postponement of the country’s graduation from the United Nations’ Least Developed Country (LDC) category, citing prolonged global and domestic economic pressures that have disrupted its transition plans.
According to officials at the Economic Relations Division (ERD), a letter requesting the deferral was sent on February 18 to the United Nations Committee for Development Policy (CDP). The letter, signed by ERD Secretary Md Shahriar Kader Siddiky, will be considered during the committee’s upcoming session scheduled from Feb 24- 28.
Conveying its message, the government stated that the five-year preparatory period initially granted for its LDC graduation had been designed to address post-pandemic recovery challenges. However, successive global shocks have significantly altered the economic landscape.
The letter further pointed to the prolonged Russia-Ukraine war, now entering its fourth year, as a major external factor that has driven up global fuel and food prices. It also cited widespread monetary tightening across advanced economies, a broader global economic slowdown, persistent supply chain disruptions—particularly in shipping—and increased uncertainty in international trade flows. These developments, the government argued, have compounded vulnerabilities and constrained Bangladesh’s ability to complete required structural reforms.
Officials acknowledged that while the preparatory period was utilized, several structural adjustment measures necessary for a smooth transition from LDC status could not be fully implemented. Domestic challenges were also highlighted, including declining investment, slower revenue mobilisation, and moderated GDP growth, all of which have limited reform momentum.
The letter further underscored growing uncertainty in the global trading environment, particularly concerns over the country’s ability to secure and maintain trade preferences such as GSP Plus benefits after graduation. Policy shifts among major trading partners could place additional strain on Bangladesh’s export competitiveness, especially in its key ready-made garment sector, necessitating additional time for adjustment and capacity building.
In light of these factors, Bangladesh has formally requested a three-year extension to its graduation timeline, along with what it described as a “crisis assessment” to evaluate the cumulative impact of global and domestic disruptions.
Sources within the ERD said an initial assessment report may be prepared within two weeks following the February CDP meeting. The committee is expected to issue its observations and recommendations thereafter, with a final decision likely to be considered in September.
Officials noted that the review process has now formally commenced, and the outcome will depend on the CDP’s evaluation of Bangladesh’s economic trajectory and vulnerability profile. They also recalled that last year, at Bangladesh’s request, the United Nations conducted an assessment outlining the country’s economic challenges. While that review characterised the graduation process as “challenging,” it did not include specific policy prescriptions or formal recommendations.
Any final decision regarding the requested deferral will ultimately be adopted by the United Nations General Assembly. Government officials indicated that the full deliberation and approval process could extend into September or October, depending on procedural timelines and the committee’s findings.
. . AKU