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Economists and experts have stressed that Bangladesh's upcoming graduation from the Least Developed Country (LDC) status in 2026 requires urgent and comprehensive preparation, bold policy reforms, and effective coordination among stakeholders to ensure a smooth transition.
They also warned that both internal and external economic vulnerabilities could undermine the country's competitiveness after graduation.
They pointed out structural weaknesses such as high operational costs, weak institutions, energy crisis, and limited export diversification -- all of which must be urgently addressed.
The experts also underscored that the transition period should be used strategically to strengthen trade resilience, expand market access, and implement reforms to safeguard Bangladesh's growth momentum.
They made the remarks at a seminar on 'LDC Graduation: Challenges & Prospects' organised by the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) at a city hotel on Sunday.
Speaking at the seminar, Commerce Secretary Mahbubur Rahman said the government had requested the United Nations General Assembly (UNGA) to visit Bangladesh to assess the country's readiness for graduation.
"In addition to the EU and the USA, the government is in talks with Canada, Australia, Japan, South Korea, and other countries to boost bilateral trade and diversify export destinations," he added.
Dr Zaidi Sattar, Chairman of the Policy Research Institute (PRI), noted that Bangladesh's LDC graduation is taking place amid a period of global uncertainty characterised by economic nationalism, protectionism, and weakening globalisation.
These factors, he said, discourage investment and complicate export growth.
He highlighted internal disruptions such as exchange rate depreciation, inflation, high interest rates, and political instability -- all of which have undermined the investment climate and weakened the foundation for a smooth transition.
Given these challenges, Dr Sattar suggested that Bangladesh consider seeking a deferral of its LDC graduation, noting that such an option exists within the UN framework for countries facing adverse economic conditions.
Former BGMEA president Faruque Hassan emphasised that Bangladesh's graduation should not become a "penalty for success."
He noted that the transition period should be managed strategically to maintain competitiveness, ensure international support, and avoid the premature withdrawal of trade benefits.
He called for reforms to reduce high interest rates, energy costs, and logistical inefficiencies, stressing the urgent need to improve port and transport infrastructure, ensure energy security, and establish financing mechanisms, such as green credit lines, to support export-oriented industries.
Hassan also underscored the importance of diversifying products, fibres, and export markets while pursuing free trade agreements with major economies.
Highlighting Bangladesh's leadership in green factory development, he urged continued investment in sustainability, the circular economy, and compliance to meet evolving global standards.
Anwar-Ul-Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), said that while the business community remains proactive and ready for the next stage of development, high operational costs and ongoing financial instability continue to erode competitiveness.
He pointed out that problems related to banking, logistics, and energy supply remain major bottlenecks for industrial expansion.
Dr Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID), suggested using any additional time granted before or after graduation -- such as a three-year extension -- not merely to maintain privileges but to prepare effectively for the new challenges ahead.
He observed that Bangladesh's transition coincides with a rapidly changing global trade landscape and said the extra time would help the country "weather the storm better."
He also emphasised that reform must remain an ongoing process, as Bangladesh's structural challenges will not disappear with graduation alone.
Dr Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), took a more optimistic stance, asserting that Bangladesh is structurally ready for graduation.
He described the move as a "structural change" rather than a symbolic one and noted that the country has already surpassed the required thresholds by wide margins.
He urged the private sector to view graduation not as a constraint but as an opportunity to strengthen competitiveness and upgrade capabilities.
In his keynote paper, Dr Selim Raihan of the South Asian Network on Economic Modeling (SANEM) said Bangladesh's readiness for graduation is under scrutiny amid global economic volatility and the potential loss of LDC-specific international support measures.
"The core risk lies in the trade sector," he warned, citing the country's heavy dependence on ready-made garment (RMG) exports and duty-free, quota-free (DFQF) market access.
The erosion of these trade privileges, he noted, could cost Bangladesh billions in lost export earnings and add pressure on its foreign reserves.
Dr Raihan also highlighted persistent domestic structural challenges, including macroeconomic stress from low foreign reserves, fiscal gaps, and high inflation; as well as deeper flaws such as weak tax collection, a fragile banking sector, high export concentration, and limited foreign direct investment (FDI).
He attributed many of these problems to entrenched "rent-seeking networks" among political, business, and bureaucratic elites that continue to obstruct meaningful reform.
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