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Bangladesh's newly elected government has formally requested a three-year extension of preparatory period for graduation from the least-developed country (LDC) category, citing transition-plan upsets for prolonged global shocks, domestic economic strains and political upheavals.
Sources say the request was made just a day after the new administration assumed office and got down to business transaction on a quick reappraisal of the ground realities.
On behalf of the government, Economic Relations Division (ERD) Secretary Md. Shahriar Kader Siddiky sent a letter Wednesday to José Antonio Ocampo, Chair of the United Nations Committee for Development Policy (CDP), seeking an extension of the LDC-graduation-preparatory period until November 24, 2029.
The crisis-response provision of the Enhanced Monitoring Mechanism (EMM) is invoked to substantiate the request for deferment.
Under the existing timeline, Bangladesh is scheduled to graduate from the global LDC club on November 24, 2026, with the third and final review process currently underway. The United Nations Committee for Development Policy (CDP) is expected to consider the government's request in the months ahead.
Earlier, the outgoing interim government-responding to appeals from leading business bodies and economists-had recommended pursuing a coordinated approach with countries such as Nepal and Laos, which are also set to graduate around the same period, to seek an extension until 2030.
The post-uprising interim administration, however, left the final decision to the elected government.
Speaking to journalists on Wednesday after taking charge of the commerce ministry, Commerce Minister Khandaker Abdul Muktadir said the government would take all necessary steps to delay LDC graduation.
He said the ministry had already begun work and would coordinate closely with the ERD to advance the process. The ERD secretary sent the letter to the CDP chair the same day.
Towfiqul Islam Khan, Additional Director (Research) at the Centre for Policy Dialogue (CPD), says Bangladesh can submit a formal request, but the final decision rests with the CDP.
He advises that the government may consider adopting a cabinet decision on deferring graduation, noting that such a decision had previously been taken at a cabinet meeting regarding LDC graduation.
He further observes that although the interim government requested a review of the country's status, it did not submit a detailed technical analysis in support of deferral.
"If we want to defer it, we should submit a technical report providing evidence to justify the request," he told The Financial Express.
According to established criteria, Bangladesh remains on track to graduate on schedule, but analysts warn that doing so without adequate preparation could affect a smooth transition.
In the letter, the government argues that extending the graduation timeline would provide critical policy space to stabilise the macroeconomy, consolidate ongoing reforms and complete priority actions under the Smooth Transition Strategy (STS).
Bangladesh's graduation was endorsed by the United Nations General Assembly following the CDP's recommendation (Resolution A/RES/76/8), after the country met all three graduation criteria-Gross National Income per capita, Human Assets Index and Economic Vulnerability Index-in the 2018 and 2021 triennial reviews.
In his communication, Siddiky emphasized that although Bangladesh continues to meet the thresholds, the five-year preparatory period has been "severely disrupted" by overlapping crises.
"These include the prolonged aftereffects of the COVID-19 pandemic, the Russia-Ukraine war and its spillover effects on global energy and food markets, tightening global financial conditions, and disruptions to international trade," he writes.
He has also cited domestic challenges, including financial-sector irregularities, pressure on foreign- exchange reserves, high inflation, declining investment and political changes following the mass uprising in 2024, and the unresolved issue of Rohingya repatriation to Myanmar.
"As a result, policy focus necessarily shifted toward short-term stabilization and crisis management, diverting attention from the preparatory process," the secretary notes. "Consequently, the preparatory period has not functioned as originally intended."
The government has expressed concern over uncertainties surrounding post-LDC trade arrangements, particularly Bangladesh's potential ineligibility for the European Union's GSP+ scheme for ready-made garments and the imposition of reciprocal tariffs by the United States.
Given the country's heavy reliance on ready-made garment exports, officials warn that premature erosion of trade preferences could expose Bangladesh to tariff shocks before adequate mitigation measures are in place.
"Proceeding with graduation under the existing timeline could entail significant risks to macroeconomic stability, export performance, employment and poverty reduction," the letter reads.
Bangladesh has already formulated its Smooth Transition Strategy with support from the United Nations Department of Economic and Social Affairs (UN-DESA) and established a high-level steering committee, chaired by the Head of Government, to oversee its implementation.
However, several structural reforms-including customs modernisation, energy-sector reforms and export diversification-remain behind schedule owing to cumulative shocks.
The letter also refers to findings from an independent Graduation Readiness Assessment commissioned by the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), which reportedly concluded that the preparatory period had been "severely disrupted" and cautioned that graduation in November 2026 may not fully align with the UN principle of avoiding disruption to development progress.
"Such an extension would provide the necessary policy space to stabilize the macroeconomic situation, consolidate reforms, and ensure that Bangladesh's graduation is fully consistent with the shared objective of sustained and inclusive development," Siddiky has written.
Welcoming the initiative of the newly elected government, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem says they hope the new cabinet will formally decide to defer LDC graduation.
"We met the new Prime Minister before the election, and he also expressed his concerns regarding the graduation," Hatem told the FE.
He holds the hope that the government would submit a strong technical analysis in favour of deferring graduation.
The BKMEA president says if the government succeeds in securing the deferral, it would help ensure a smoother transition plan to address potential graduation shocks-something he claims had not been adequately undertaken by the previous government.
"There was even an incident of stepping back from the graduation move just a week before the deadline," he mentions.
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