UN team seeks roadmap for Bangladesh’s smooth LDC transition

The visiting United Nations assessment team in Dhaka has asked local businesses to prepare a roadmap on the Smooth Transition Strategy (STS) to ensure Bangladesh’s sustainable graduation from the Least Developed Country (LDC) status.

In response, business leaders at a meeting on Sunday informed the UN delegation that although the STS has been formulated, its implementation progress remains poor and full execution within the next year appears unlikely.

Highlighting the challenges the country might face during the transition, they said Bangladesh would need at least five more years to complete necessary preparations.

According to meeting sources, the UN team sought to understand these challenges from the business community and requested a detailed roadmap outlining how the STS could be implemented if a time extension is granted.

“We informed the UN team that only a small part of the STS has been implemented over the past several years, and proper preparation for a smooth graduation is still lacking,” said Fazlee Shamim Ehsan, president of the Bangladesh Employers Federation (BEF), who attended the meeting.

Bangladesh still relies heavily on a single export product—ready-made garments—and a few major markets, he told The Financial Express after the meeting.

He added that the team wanted to know in detail the challenges faced by the industry and asked for a five-year roadmap from the private sector, which will be shared soon.

Leaders from the ready-made garment sector, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), and other major business organisations attended the meeting.

There were two meetings at the UN House in Gulshan, where a three-member UN delegation led by Roland Mollerus, Director of the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), met with business leaders.

The delegation is visiting Dhaka to conduct an independent assessment of Bangladesh’s preparedness for LDC graduation and is also scheduled to meet government officials and political leaders.

In a statement, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said several major challenges were presented during the meeting.

Mahmud Hasan Khan, president of BGMEA, said, “At this crucial juncture of LDC graduation, Bangladesh’s apparel industry is facing rising operational costs and infrastructural constraints.”

He noted that exporters are struggling with logistics inefficiencies, as Chattogram port charges were increased by 41 per cent in October 2025, while long transportation times continue to hurt industrial competitiveness.

Citing the 2023 wage hike and an annual increment of 9.0 per cent last year, he said a 60 per cent reduction in cash incentives without compensatory support has put the export-oriented sector at high risk, increasing its economic vulnerability.

The BGMEA president further pointed out major macroeconomic challenges, including slower GDP growth, persistent inflation above 8 per cent, a low tax-to-GDP ratio of 6.6 per cent, and foreign exchange reserves of $27.5 billion (as per BPM6).

Munni_fe@yahoo.com