Commerce minister seeks deferral of LDC graduation

Bangladesh must avoid policy missteps, he said, expressing confidence that the govt can reverse the recent sluggish trend in trade and investment

Daily Sun Report, Dhaka

Published: 19 Feb 2026, 12:00 AM Updated: 19 Feb 2026, 05:11 AM

Commerce minister seeks deferral of LDC graduation

A A

Commerce Minister Khandaker Abdul Muktadir said the newly formed government will seek to defer Bangladesh’s graduation from the Least Developed Country (LDC) category and pursue all necessary steps to secure an extension.

Speaking to reporters at the Secretariat on Wednesday, the minister said the Ministry of Commerce has already begun working on the issue in coordination with the Economic Relations Division (ERD).

He said the matter has long been a key demand of business associations and is now being treated with the highest priority.

“There is no requirement to submit a formal request within the first week of assuming office, but work has already started,” he said.

Export slowdown, diversification push

Addressing the recent slowdown in exports, the minister said Bangladesh’s export basket remains highly concentrated, with nearly 85% of shipments dependent on a single product category.

“To reduce this vulnerability, we must diversify our exports, introduce new products and explore new markets,” he said, adding that the government will support private entrepreneurs seeking to expand investment.

He also cited global trade uncertainties, including abrupt changes in US tariff policies, as factors contributing to current challenges.

As a developing economy with limited room for error, Bangladesh must avoid policy missteps, he said, expressing confidence that the government can reverse the recent sluggish trend in trade and investment.

Ramadan prices and market stability

On price stability during Ramadan, the minister said the country has sufficient stocks of essential commodities, with adequate supplies in the pipeline to keep markets stable.

“If supply remains normal, the market will remain stable. There is no reason for panic,” he said.

Asked about alleged market syndicates that often surface during Ramadan, he said the government would focus on action rather than rhetoric.

“I will not give sound bites. Inshallah, I will demonstrate through action,” he added.

He attributed early Ramadan price spikes to a one-time surge in demand, as many consumers purchase essentials for the entire month at once, temporarily increasing pressure on retail markets.

Investment concerns

On investment, the minister stressed that uncertainty discourages both domestic and foreign investors.

“The first condition for investment is stability. Investors need assurance of expected returns on their capital and labour,” he said.

With around 20 to 22 lakh people entering vthe labour market each year, stagnant investment over the past two to three years has increased pressure on employment and economic growth, he warned.

Calling the management of Ramadan soon after taking office a significant test, he urged cooperation from the media and all stakeholders.

“This is not about any individual, it is about the country. If we work together and correct mistakes when they occur, we can move the country forward,” he said.

LDC graduation timeline

Bangladesh is scheduled to graduate from the Least Developed Country category on 24 November 2026 under the framework of the United Nations, after meeting all three graduation criteria – per capita income, human assets and economic vulnerability – in consecutive UN reviews.

The country first qualified for graduation in 2018 and again in 2021, triggering the formal transition process.

While graduation is widely viewed as a major development milestone, business groups have expressed concern over the potential loss of trade preferences and other international support measures, prompting renewed calls for a deferral.

For all latest news, follow the Daily Sun's Google News channel.

Business