Govt to implement reforms with five stakeholders to ensure sustainable LDC graduation: Titumir

The government has undertaken a comprehensive reform initiative involving five key stakeholders–the people, private sector, United Nations, development partners and multilateral development institutions–to ensure Bangladesh's sustainable graduation from the Least Developed Country (LDC) category.

The government does not want to treat the additional three years granted for LDC graduation preparation merely as an extension of time. Instead, it aims to utilise the period to implement structural reforms in the economy, enhance productivity, explore new markets and lay the foundation for long-term sustainable development.

Prime Minister's Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir said this in an interview at the Bangladesh Secretariat on Sunday.

He said Prime Minister Tarique Rahman had set a vision of transforming Bangladesh into a global manufacturing hub and an export gateway. To achieve this goal, the government is working on a strategy to transform the country from "graduation to a trillion-dollar economy", while ensuring that the transformation remains sustainable.

Titumir said Bangladesh has the largest economy among the LDCs and, therefore, requires major reforms to diversify its economy, enhance competitiveness and increase productivity.

Explaining the rationale for the extended preparation period, the adviser said the government considers it an integral part of its broader economic strategy.

He identified three key considerations behind the decision: domestic economic vulnerabilities inherited from the previous administration, external pressures and economic uncertainties arising from the Middle East crisis, and the country's inadequate preparation to address these challenges.

"Taking these realities into consideration, the government has started working on the necessary measures. However, the government has supported LDC graduation from the very beginning," he said.

Regarding reform priorities, the Prime Minister's adviser said restoring discipline in the banking sector and ensuring adequate financing for investment are among the government's major objectives.

The government will also focus on strengthening energy security, exploring new investment markets and diversifying the country's export basket. It will pursue free trade agreements (FTAs) with different countries to mitigate the possible loss of trade preferences following LDC graduation.

Titumir said achieving these objectives would become easier through an effective compact with the private sector.

He said private sector representatives had been involved in every discussion on LDC graduation, adding that the initiative also forms part of the government's “Three Rs” strategy.

The adviser said the government had brought five stakeholders under the reform initiative: the people of Bangladesh, the private sector, the United Nations, development partners and multilateral development institutions.

He described the initiative as an unprecedented consensus-based partnership.

Highlighting the role of the United Nations, Titumir said a unanimously adopted proposal had mandated the UN system to provide all forms of support, including technical assistance, to Bangladesh's graduation preparations. The UN resident coordinator will lead the coordination of this assistance.

He said the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and Islamic Development Bank (IsDB) had assured support for the priority reforms identified by the government.

Titumir added that the ongoing IMF programme and other reform initiatives were aligned with the government's broader reform agenda.

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He said the reforms were being undertaken on the basis of the people's mandate, which was one of the distinctive features of the initiative.

"Never before have the people of the country been involved in reform initiatives in this manner," he said, adding that the participation of the five stakeholders would also help strengthen confidence among foreign investors.

The adviser identified energy security as a major prerequisite for sustainable industrialisation and investment.

He said the government planned to develop energy infrastructure centred on Matarbari while expanding the necessary facilities in other parts of the country.

To increase LNG import capacity, the government is working on establishing land-based LNG terminals alongside floating storage and regasification facilities.

The government is also prioritising increased solar power generation, reducing wastage and system losses in the energy supply chain, and diversifying sources of LNG imports.

Titumir said developing energy infrastructure beyond Matarbari, particularly in the southwestern region and other parts of the country, would create opportunities for geographically balanced industrialisation.

He said the government was also focusing on exploring new export destinations and pursuing FTAs or Comprehensive Economic Partnership Agreements (CEPAs) with trading partners to address the potential reduction of duty-free and quota-free market access after LDC graduation.

The additional three years, he said, have created an important economic opportunity for Bangladesh.

Proper utilisation of the extended period could help strengthen the country's economic foundations through higher investment, new export markets, expanded production capacity and increased employment opportunities.

The period, therefore, represents not only an opportunity to prepare for LDC graduation but also a crucial window for Bangladesh's long-term economic transformation.