Govt plans to hold nat'l dialogue before reply to UN CDP’s letter

The government is going to hold a national dialogue with the stakeholders to reach a national consensus on the issue of possible deferment of Bangladesh's graduation from the LDC bloc.

Chief Adviser Dr Muhammad Yunus will convene the dialogue so that the government can prepare a report for the United Nation's Committee for Development Policy (CDP), which is to be sent by October 31, 2025.

The report would make clear Bangladesh's stance on how to exit from the list of LDCs on November 24, 2025.

The Chief Adviser is expected to explain Bangladesh's positions in the dialogue whether a deferment can be sought from the UN General Assembly.

The dialogue is expected to be held next month (October), it was learnt.

Special Assistant to the Chief Adviser (CA) on Ministry of Finance (MoF) Dr Anisuzzaman Chowdhury said this while talking to the FE at Bangladesh Secretariat on Thursday.

"We haven't taken any decision yet whether we would seek deferment of our graduation," he said, refuting any move from the government regarding the deferment of LDC graduation by three more years.

The discussion came following a query from this FE correspondent about UN CDP's letter, dated August 25, 2025, which sought Bangladesh's preparation for its graduation from the LDC status.

Dr Chowdhury said a 'transition safety net' has to be framed so that workers can come out from any trauma in the employment sector.

The CA is expected to deliver a message in the dialogue, assuring that the government would cushion the challenges they may face after graduation, he added.

Dr Chowdhury said the government already started removing the bottlenecks to diversifying Bangladesh's export basket.

"We have moved to resolve barriers from Ship building, pharmaceuticals sector investment so that they can offer employment opportunities, in case of any possible blow after the graduation," he.

He also found it difficult to seek deferment as Bangladesh may not be able to convince other members as there remains no strong logic behind it.

The problems with regard to opening Letter of Credit (L/C) for ship building sector and importing Active Pharmaceuticals Ingredient (API) for pharmaceutical sector are under active consideration of the government, he said. Bangladesh economy has to be elevated to the next level as it remains stuck in one position for a pretty long time, he added.

The UN would review the LDC graduation in the next three years after coming out from the LDC list, he said, reiterating that the prospect for winning the LDC deferment proposal, if made, is extremely low.

Mighty powers may not like it that Bangladesh wins its graduation deferment proposal and even it secures votes from 97 countries, he added.

Economist Dr Abdur Razzaque, Chairman of the RAPID, appreciated the government's move to hold a national dialogue on LDC graduation.

"It was the recommendation from LDC expert group panels two months back," he said.

Businessmen may also realise the reality that deferment of graduation may not be possible, he added.

Confusions on what the government is going to do in this regard would be resolved in the national talk, he added.

Geo-political issues are there, where G7 countries and some LDCs may not vote for Bangladesh even if it seeks deferment, he added.

Amendments to the labour law, lobbying for GSP+ facility in the EU, a Central effluent treatment plant and addressing the energy crisis could be the main remedies, he added.

If the EU or USA does not support the LDC deferment proposal of Bangladesh, it is not bound to offer Bangladesh trade privilege as LDC, he added.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hassan Khan Babu said the exporters want the government to write to the CDP, mentioning Bangladesh's poor port efficiency, energy crisis and an economic vulnerability as logics for the deferment.

He, however, clarified that the country's businesses are not raising the deferment proposal directly to the general assembly for voting, taking the geo-political issues into consideration. "The government can share the Smooth Transition Strategy (STS) position paper to the UN so that it can consider deferment," he added.

Dr Masrur Reaz, Chairman of the Policy Exchange Bangladesh, said the government must revisit the timing of LDC graduation for some reasons as key sectors including exporters, pharmaceuticals and agriculture.

Open discussion is necessary between government and businesses, he said.

Economic dependence on export is lesser in Nepal and Laos, 3.0 per cent and 15 per cent of Bangladesh's total export,

""There is a high possibility of economic shock after graduation if Bangladesh is not prepared for it in a real sense, he added.

Prices of medicine would shoot up significantly with a country having fragile health security, he added. He suggested a time-bound reform plan from the government to graduate from the list of LDC.

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