UN body recommends deferral of Bangladesh’s LDC graduation

The United Nations’ expert committee responsible for reviewing the list of least developed countries (LDCs) has recommended a three-year deferral of Bangladesh’s graduation from the LDC category.
If approved by the UN General Assembly (UNGA), the extension would provide Bangladesh with additional time to prepare for the gradual withdrawal of preferential trade access, tariff concessions, concessional financing and other benefits available to LDCs, according to a statement issued by the Economic Relations Division (ERD) on Tuesday.
The statement said the UN Committee for Development Policy (CDP) acknowledged that Bangladesh has surpassed all the criteria required for graduation to developing-country status and faces little risk of reversing its progress.
However, the committee noted that external challenges—including the conflict in the Middle East, global energy and supply-chain disruptions, and ongoing changes in international trade practices—could complicate the country’s transition process.
The government formally requested the three-year extension on 18 February, seeking to postpone graduation beyond the scheduled date of 24 November this year. Subsequently, on 6 April, Chief Adviser Tarique Rahman wrote to UN Secretary-General Antonio Guterres, requesting his personal intervention in support of the proposal.

While endorsing the request, the CDP stressed that the additional time should not be used to delay necessary reforms. Instead, it urged Bangladesh to address key structural challenges, including strengthening financial stability, improving tax collection, enhancing productivity and diversifying its productive sectors.
The committee also emphasised the importance of continued international support beyond 2029 to ensure a smooth and sustainable transition. Notably, the World Trade Organization (WTO) allows newly graduated countries to benefit from an additional three-year transition period during which certain preferential tariff arrangements remain in place.
If the UNGA does not approve the recommendation, Bangladesh will graduate from the LDC category on 24 November this year.

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