Decision on LDC graduation delay expected in October: Commerce Minister

Bangladesh expects a decision by the end of October on its request to delay graduation from the least developed country (LDC) category by three years, Commerce, Industries, and Textiles and Jute Minister Khandaker Abdul Muktadir said on Monday.

Speaking at a seminar in Dhaka, he said the government had prepared a time-bound action plan to use the additional period for preparations and aimed to conclude free trade agreement (FTA) negotiations with the European Union (EU) before graduation.

The minister made the remarks at a seminar on the challenges and priorities of Bangladesh’s LDC graduation, organised jointly by the Economic Reporters Forum (ERF) and the Bangladesh Foreign Trade Institute (BFTI) at the ERF conference room.

Expressing optimism about the proposed delay, Muktadir said Bangladesh had passed the stage of the United Nations Committee for Development Policy (CDP) and subsequently requested a three-year extension through the UN Economic and Social Council (ECOSOC).

He said the EU and other relevant parties had also agreed to Bangladesh receiving additional time.

“I am very optimistic that we will see a resolution of the matter next week or the week after,” the minister said, expressing hope that a decision would come before the November 24 deadline.

Explaining the reasons for seeking the extension, Muktadir said the country had not been adequately prepared to face the challenges following graduation. He observed that efforts had been made to politically glorify the process rather than adequately address its economic and financial implications.

According to the minister, insufficient attention had been given to maximising the benefits of graduation and building the capacity needed to address its potential disadvantages.

He said the government had shared a time-bound action plan with the EU outlining how Bangladesh would use the additional time if the extension were granted.

Bangladesh targets trade deals with 8-10 countries

Highlighting efforts to preserve market access for Bangladeshi goods and services, Muktadir said the government aimed to conclude comprehensive economic partnership agreements (CEPAs) or FTAs with eight to 10 countries during 2026 and 2027.

A chief negotiator has been appointed for FTA negotiations with the EU, and preparations are under way to begin the first round of technical discussions, he said, adding that a date had yet to be fixed.

The minister said his goal was to complete the negotiations before Bangladesh graduates from the LDC category.

Preparations to secure Generalised Scheme of Preferences Plus (GSP+) benefits in the EU market would also continue, he said.

“However, I hope we will not have to take the GSP+ option, as we will complete the FTA before that,” he added.

The process of joining the Regional Comprehensive Economic Partnership (RCEP) is also progressing, according to the minister. He said in-principle approval had been secured for Bangladesh’s inclusion, with procedural work now under way.

Business reforms to reduce delays

Muktadir said improving international market access alone would not be sufficient to attract investment. Reliable energy supplies, simpler business procedures and transparent legal mechanisms for resolving disputes were also necessary.

He said the country needed to ensure both adequate purchasing power among domestic consumers for locally produced goods and access to foreign markets for exports.

Citing delays in starting a business, the minister said it took an average of 355 days to complete the process from obtaining a trade licence, opening a bank account and securing initial clearances to obtaining an import registration certificate and opening a letter of credit for machinery.

Such lengthy procedures made it difficult for entrepreneurs to maintain their enthusiasm, he said.

To address the problem, the government plans to introduce a single online portal for issuing trade licences. Applicants would be able to submit documents, pay fees and obtain licences from anywhere in the country or abroad, while the fees would automatically be transferred to the relevant local government bodies, he said.

The government is also working to bring the services of the Registrar of Joint Stock Companies and Firms (RJSC) fully online and extend the validity of various licences from three years to five years.

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Muktadir said the government also planned to introduce coordinated inspections instead of separate inspections by different agencies.

He expressed hope that these reforms would help free entrepreneurs from lengthy licensing and approval procedures by 2027.

Energy security and strategic reserves

Identifying the energy crisis as a major obstacle to new investment, the minister said work was under way to establish new floating liquefied natural gas (LNG) terminals and drill gas wells to increase supplies. The government was also taking steps to expand solar power generation, he added.

Muktadir said Bangladesh came under pressure when international supply disruptions occurred because the country lacked adequate storage facilities for LNG and essential commodities.

He stressed the need to develop strategic reserves and increase storage capacity to reduce vulnerability to uncertainty in international supply chains.

The minister said the government was pursuing an integrated approach to strengthening confidence among domestic and foreign investors, simplifying business procedures and improving access to global markets.

ERF President Daulat Akter Mala chaired the seminar, while BFTI Chief Executive Officer Dr Mostafa Abid Khan presented the keynote paper. ERF executive committee member SSM Moinul Haque moderated the event.