Bangladesh is expected to learn by September whether it will get additional time before graduating from Least- Developed Country (LDC) status, with United Nations bodies currently reviewing its request for a deferral amid economic challenges and ongoing reform efforts.
The United Nations General Assembly (UNGA) is expected to take the final decision in this regard in September this year, officials said on Thursday.
Officials at the Economic Relations Division (ERD) said the executive body of the United Nations Committee for Development Policy (UNCDP) -- the Economic and Social Council (ECOSOC) -- would determine the deferral request and specify the length of the extended preparatory period.
The decision would then be submitted to the UNGA for final approval, likely at its session in September this year, they added.
"An ECOSOC meeting will be held on 12 June. Bangladesh's issue may not be placed at the immediate next meeting. It could instead be discussed at a meeting in late July. We will then know the specific duration of the LDC graduation deferral," a senior ERD official said.
He said that although the proposed extension period was likely to become clear following the ECOSOC meeting in July, the final decision would require approval by the UN General Assembly.
Bangladesh's fellow graduating LDC, Nepal, has also applied for a two-and-a-half-year deferral of its graduation.
"Since Nepal has requested a two-and-a-half-year extension, the UN may adopt a common approach for both countries. The deferral period could therefore be between two and two-and-a-half years," another ERD official said.
In response to Bangladesh's request for a three-year extension of the preparatory period, the UNCDP, in a letter sent to the ERD Secretary on June 1, expressed a positive view of the request but did not specify any timeframe.
Bangladesh is currently scheduled to graduate from LDC status in November 2026.
Amid global economic shocks, energy supply constraints, domestic political transition and other external challenges, Bangladesh submitted its request to the United Nations more than two months ago, seeking additional time before graduation.
Meanwhile, the UNCDP has attached several conditions to its consideration of Bangladesh's request.
The Committee underscored the importance of domestic reforms, including measures to stabilise the financial sector, strengthen domestic resource mobilisation through higher tax revenue collection, and prioritise expenditures that enhance resilience and support economic transformation.
"Without significantly advancing on such reforms, it is difficult to see how an extension of the preparatory period requested by Bangladesh would contribute to a more sustainable graduation and a smooth transition. Hence, the extension should not be viewed as a pause or justification for delaying reforms," the Committee said.
The Committee advised that any extension should serve as a catalyst for accelerating reforms and implementing smooth transition measures, particularly those aimed at strengthening productive capacities, promoting economic diversification and preparing the private sector for graduation.
It noted that these measures require careful sequencing and sustained attention throughout both the preparatory and post-graduation transition periods.
In its letter to the ERD Secretary dated June 1, the CDP also indicated that a shorter extension of the preparatory period would appear more conducive to ensuring a sustainable graduation process.
Earlier, on Tuesday, the ERD said in a statement that the UNCDP had expressed a "positive position regarding Bangladesh's request to extend its preparatory period for graduation from the LDC category until November 24, 2029".
In its assessment report, however, the CDP noted that Bangladesh's request for a three-year extension was consistent with the approach taken in all five previous cases where graduating countries had received extensions to their preparatory periods.
The Committee acknowledged the heightened uncertainty arising from external shocks and recognised the need for additional time to adjust policies and establish priorities under the Smooth Transition Strategy (STS).
At the same time, it highlighted the risk that, for a country that had met the graduation criteria by a comfortable margin, prolonging its stay in the LDC category could delay the benefits associated with graduation.
The UNCDP has already recommended three countries for graduation from LDC status in 2026 -- Bangladesh, Nepal and Lao PDR.
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