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Bangladesh Bank (BB) Governor Dr. Ahsan H. Mansur today (Tuesday) emphasized that the country’s graduation from Least Developed Country (LDC) status should be viewed not as a mere deadline, but as a drive toward achieving economic efficiency and competitiveness.
“The policies required for graduation are indistinguishable from a robust national development strategy, necessitating improvements in logistics, infrastructure, and human capital,” he said.
The BB chief made the remarks while speaking as the chief guest at a roundtable on “Implications of LDC Graduation for Banking Industry: Bangladesh Perspective” at a hotel in the city, BSS reports.
International Chamber of Commerce (ICC) Bangladesh in association with Bengal Commercial Bank PLC, City Bank, Mutual Trust Bank PLC and Shahjalal Islami Bank PLC organised the event.
Ahsan H. Mansur urged stakeholders to look beyond the specific timeline of graduation, stating that whether it occurs in 2026 or a few years later is less important than the preparation of the economy.
He noted that Bangladesh should no longer compare itself to struggling nations like South Sudan or Afghanistan, but rather aspire to the status of developing nations such as Thailand, Malaysia, and India.
"I do not consider that Bangladesh is part of the community of LDC anymore," the BB governor stated, suggesting that clinging to the label for trade benefits costs the nation the respect and status associated with the global community of developing nations.
To achieve efficiency, he highlighted the need to develop better logistics, port systems, road communications, ICT, and education.
He stressed that the development strategy must focus on issues that make the country efficient, competitive in terms of cost structures and generate efficiency for labour and industries.
Addressing the financial sector, the Governor identified macroeconomic stability as the first and foremost factor, warning that without exchange rate stability and reserves, development is impossible.
He set a target to anchor macro stability, aiming to achieve at least US$35 billion in reserves by June, with a goal of reaching $40 billion by the following June.
On the topic of inflation, he emphasized the need to break inflation expectation, noting that price hikes have become built-in to the economy due to a lack of accountability.
He argued that unless this expectation is broken, market rates will not stabilize.
The governor noted that the exchange rate has remained stable at Taka 122.3 for several months.
He explained that the central bank is not allowing the exchange rate to appreciate to ensure the country remains competitive against peers like India, whose currency has depreciated.
By buying dollars to prevent appreciation, he said, the central bank has simultaneously bolstered reserves and injected liquidity into the market.
The governor revealed that approximately $4 billion (roughly 40,000 crore) had been injected into the system through these purchases recently.
Concluding his remarks, the Governor called for shifting the debate from hypothetical graduation dates to substantive issues.
"I look at graduation as making our economies competitive," he said.
He urged a focus on reducing power sector costs, generating more revenue, and containing labour costs to ensure the nation is ready to step out onto the global stage.
ICC Bangladesh President Mahbubur Rahman presided over the event while its Banking Commission Chairman Muhammad A. (Rumee) Ali delivered the welcome speech.
Professor of the Bangladesh Institute of Bank Management (BIBM) Dr. Shah Md Ahsan Habib delivered the keynote address.
Chairman of the Bangladesh Association of Banks (BAB) Abdul Hai Sarker, ICC Bangladesh Vice President A K Azad, Chairman of the Bengal Commercial Bank PLC Md. Jashim Uddin and Vice President, ICC Bangladesh and Chief Executive Officer of Standard Chartered Bank Naser Ezaz Bijoy took part at the open discussion.
From a banking perspective, Mahbubur Rahman said, LDC graduation will reshape the operating environment in three fundamental ways like changing development finance dynamics; higher trade and export finance risks and rising regulatory and compliance expectations.
“As concessional and semi-concessional external financing gradually declines, the cost of long-term funds will rise and access will become more selective. This shift will place greater responsibility on the domestic financial system particularly on banks to support in infrastructure development, long-term project financing and priority and productive sectors,” he added.
Here, he mentioned that Bangladesh Bank's monetary, regulatory, and supervisory framework will be decisive in ensuring liquidity stability, effective maturity transformation, and prudent risk-taking across the system.
He also said that as preferential market access diminishes in certain export destinations including export margins may narrow; payment risks may increase; and compliance requirements related to rules of origin, sustainability, and traceability will intensify.
“All these and other factors are likely to affect our international trade leading to difficulties and settlement of payment. Thus it will require clear regulatory guidance and policy coordination-areas where Bangladesh Bank's leadership will be instrumental,” he added.
Post-graduation, he stated that Bangladesh will increasingly be viewed as a middle-income economy by global regulators, investors, and correspondent banks.
“This means stronger expectations regarding BASEL implementation; more rigorous AML-CFT enforcement (Anti-Money Laundering & Combating the Financing of Terrorism); and greater emphasis on ESG (Environmental, Social & Governance) standards, climate-risk management, and sustainable finance,” he explained.
From ICC Bangladesh's perspective, Mahbubur Rahman said that the post-LDC era calls for a qualitative transformation of the banking sector, guided by sound regulation and credible supervision.
This includes a shift from transactional to transformational banking; stronger governance and risk management culture; and mainstreaming green, sustainable, and transition finance, he added.
He also suggested that banks will increasingly need to align their portfolios with climate-resilient infrastructure, ESG-compliant investment frameworks and long-term development priorities.
Managing Director & CEO of the Mutual Trust Bank PLC Syed Mahbubur Rahman, Managing Director & CEO of the Prime Bank PLC Hassan O. Rashid, Managing Director of the Plummy Fashions Limited Md. Fazlul Hoque, Deputy Managing Director of Picard Bangladesh Amrita Makin Islam and Chief Executive Officer of Transcom Group and Managing Director of Eskayef Pharmaceuticals Ltd Simeen Rahman Group, among others, also spoke on the occasion.