Originally posted in The Business Standard on 31 October 2026
How 3 more years can help Bangladesh lay groundwork for smoother graduation
Speaking to TBS, business leaders and economists welcomed the postponement while stressing the work ahead.
Bangladesh has secured three more years before graduating from the United Nations’ least developed country (LDC) category. For garment exporters, pharmaceutical manufacturers and leading business associations that had repeatedly sought more time, the decision brings relief.
But the postponement does not resolve the problems that prompted businesses to seek it in the first place. Energy constraints, weaknesses in the banking sector, difficulties accessing finance and overreliance on garments remain concerns.
Speaking to TBS, business leaders and economists welcomed the postponement while stressing the work ahead. They called for a clear roadmap and broader economic reforms to help industries adjust for the inevitable graduation in 2029
Nazneen Ahmed
Executive Director, CPD
The postponement gives Bangladesh more time to prepare for challenges it was not ready to face. Our preparations were inadequate, including before the interim government took office. From that perspective, the delay is welcome. But graduation cannot be treated simply as a trade or market access issue. It requires structural changes across the economy.
We need to reorganise our businesses, reform the banking sector and change our revenue system. Labour and environmental compliance will also become increasingly important. These three years provide an opportunity to undertake those changes.
We need to prepare for changes in access to the European market after graduation. Bangladesh must take preparations for a trade agreement with the EU seriously. The implications also extend beyond exporters.
We need to consider international borrowing and the support available to NGOs, development programmes and students through schemes linked to LDC status. The whole economy has to be considered when preparing for graduation.
The question cannot be why we should leave the LDC category at all. We want to develop on a stronger economic foundation. The additional time provides another opportunity to prepare, but that preparation must bring meaningful structural change. We cannot keep asking for more time after beginning the process of leaving the category.
