Bangladesh Not Ready for LDC Graduation Yet: Minister

Finance Minister Amir Khosru Mahmud Chowdhury on Sunday said Bangladesh is not currently prepared to graduate from the group of Least Developed Countries (LDCs), citing mounting domestic economic challenges and continued global uncertainty.

Speaking to journalists after a discussion on the country’s preparedness for LDC graduation at the Planning Commission in Dhaka, the minister said the prevailing economic conditions have made such a transition unrealistic at this stage.

He said nearly all major economic indicators are now under pressure, raising serious concerns about the country’s readiness to move to the next development category.

“Under the current circumstances, LDC graduation is not possible right now,” the minister said, pointing to a combination of internal economic stress and external shocks that continue to weigh on the economy.

According to him, Bangladesh’s economy has been facing prolonged strain due to a number of global developments, particularly the ongoing crisis in the Middle East, which has had widespread economic repercussions beyond the region.

He said the impact of international instability is not confined to Bangladesh alone, but has affected economies across the world through higher costs, supply disruptions, trade uncertainty and financial volatility.

The minister said the government has been working continuously to contain the fallout and maintain economic stability, describing the current approach as a series of ongoing “firefighting efforts” aimed at navigating immediate challenges.

He stressed that graduating from the LDC category is not merely a symbolic achievement, but a major structural transition that requires strong institutional capacity, economic resilience and long-term preparedness.

“Readiness for graduation depends on capacity building,” he said, adding that the government is focusing on strengthening that capacity in line with its election commitments and broader economic agenda.

Bangladesh had originally been scheduled to graduate from the LDC category in 2026. However, the government has sought additional time in light of the current economic landscape and the need for deeper preparation before taking such a significant step.

The finance minister said Bangladesh has already submitted a formal request to the United Nations (UN) seeking a three-year extension of the transition period until 2029.

The extension, he said, is intended to allow the country more time to prepare for the challenges that could arise after graduation, including the possible loss of certain international trade preferences, concessional financing opportunities and other special support measures currently available to LDCs.

He said the UN Committee for Development Policy (CDP) has already initiated the review process regarding Bangladesh’s request.

According to the minister, the proposal will now move to the UN Economic and Social Council (ECOSOC) and later to the UN General Assembly this year for final consideration.

Economists have long noted that while LDC graduation would mark an important milestone in Bangladesh’s development journey, the transition must be carefully managed to avoid risks to exports, employment, investment and macroeconomic stability.

Sunday’s remarks from the finance minister suggest that the government is now prioritising economic consolidation and preparedness over symbolic timelines, as it seeks to ensure that Bangladesh enters the post-LDC era from a position of strength rather than vulnerability.