Private sector urged to lobby for LDC graduation deferral

The interim government’s chief adviser’s Special Assistant Dr Anisuzzaman Chowdhury has said that the private sector should start lobbying through their international partners to defer Bangladesh’s graduation from the least-developed country (LDC) status.

He noted that a final decision on deferral might be taken by the next elected government, but cautioned that the United Nations may not accept arguments solely based on macroeconomic vulnerabilities.

Dr Chowdhury advised businesses to begin lobbying independently, leveraging their strong networks with international buyers.

He made these remarks as the chief guest at a seminar titled “LDC Graduation and Bangladesh’s Preparedness” at the Economic Reporters’ Forum (ERF) auditorium in Dhaka on Saturday.

At the event, experts observed that the government could seek a deferral of LDC graduation by highlighting macroeconomic vulnerabilities rather than relying on manipulated data. They suggested that Bangladesh’s request could focus on health and food security concerns, along with other economic fragilities.

Policy Exchange Bangladesh Founder and Chairman Dr Mashrur Reaz said Bangladesh is on track to graduate from LDC status, but given the current situation, additional time may be needed.

“After reviewing the data, it appears that Bangladesh is not fully ready for graduation. Our food security remains dependent on imports, while the agriculture sector heavily relies on imported fertilisers and pesticides,” he said.

He cautioned that manipulating data alone would not be sufficient to secure a deferral, stressing that broader macroeconomic vulnerabilities must be presented.

“Health security has also not reached the expected level,” he added.

Dr Reaz noted that Bangladesh’s export dependency differs significantly from that of countries like Laos and Cambodia.

“We are facing an energy crisis driven by import dependence since 2011, and it is not possible to resolve this issue overnight,” he said, referring to Professor Ezaz’s warning of an impending “energy famine” that could act as a double-edged sword for the economy.

He pointed out that the interim government has begun efforts to stabilise foreign exchange reserves, which were declining by over $700 million per month during the previous regime.

“The government is trying to improve the economic situation, but it has also had to contend with over 600 instances of unrest in the past year,” he added.

According to Dr Reaz, Bangladesh ranks 105 in the Global Competitiveness Index, while competing countries are below 60. The country also needs significant improvement in the Logistics Performance Index and Trade Facilitation Index, he noted.

“Singapore has been trying to engage with us since 2018, but implementation remains a challenge,” he said, adding that Bangladesh’s share in global value chains is only 20–22 per cent, compared to Vietnam’s 66 per cent.

Referring to Dr Chowdhury’s keynote presentation, Dr Reaz said, “Within the government, none of the top officials are proactively addressing the graduation issue.”

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem claimed that the graduation decision was based on false information and manipulated parameters.

“During the previous regime, export data was continuously inflated by about $5 billion,” he alleged.

Hatem added that the new government now has an opportunity to delay the graduation process.

“In the chief adviser’s speech, he mentioned that the economy is on life support — and that alone is reason enough to seek a delay,” he said.

He urged patience, saying, “We should give the government time to revive the economy.”

Hatem warned that recently graduated countries had little to lose, whereas Bangladesh faces the risk of losing a significant portion of its export earnings.

“If the European Union revises its rules, we may not even qualify for GSP Plus benefits,” he cautioned.

He said while some progress had been made — “from ICU to life support” — Bangladesh still needs at least three more years under a deferral policy.

“We remain in the dark about government policy, as there has been no meeting with exporters so far,” Hatem added.

Chief Adviser’s Press Secretary Shafiqul Alam attended the event as a special guest.

Others present included BGMEA Senior Vice President Inamul Haq Khan Bablu and Bangladesh Association of Pharmaceutical Industries (BAPI) CEO Md Mustafizur Rahman.

ERF President Doulat Akter Mala presided over the seminar, while Secretary General Abul Kasem moderated the session.

newsmanjasi@gmail.com