Bangladesh seeks global backing for LDC graduation extension

The government has urged the international community to back Bangladesh's request for a three-year extension for graduation from the Least-Developed Country (LDC) category, arguing that the additional time is crucial to ensuring a smooth, sustainable and irreversible transition.
Commerce Minister Khandakar Abdul Muktadir made the appeal before representatives of foreign diplomatic missions at a seminar titled "Bangladesh's Preparedness for LDC Graduation and the Rationale for Extension of the Preparatory Period", organised by the Economic Relations Division (ERD) in Dhaka on Thursday.
In collaboration with the ministries of commerce and foreign affairs, the seminar briefed foreign diplomats and development partners on Bangladesh's LDC graduation preparedness, ongoing reforms and the rationale for seeking extension of the preparatory period, according to a press release issued by the commerce ministry.
However, foreign diplomats attending the seminar sought clarification on the government's plans to raise the tax-to-GDP ratio and attract both domestic and foreign investment, a senior official who attended the seminar told The Financial Express.
They also put emphasis on export diversification, carrying out necessary reforms in the financial sector, and expanding the tax base to prepare the country for a sustainable LDC graduation.
Muktadir said Bangladesh is seeking to extend the LDC graduation preparatory period not for delaying the momentum but to ensure a smooth and sustainable transition. "We are not seeking this deferral to slow down the momentum. Rather, we seek it to ensure a sustainable, stable, and effective economic transformation," he said while speaking as the chair of the seminar.
The minister noted that during the ongoing preparatory period, Bangladesh has faced a number of global and domestic challenges, including volatility in global trade, geopolitical tensions, inflationary pressures, and disruptions to supply chains.
Referring to the Graduation Readiness Assessment conducted by the UNOHRLLS, the minister said the current situation is not sufficiently conducive for Bangladesh to graduate from LDC status within the existing timeline.
He informed that the government has already adopted a roadmap incorporating 25 priority reforms, including measures to ensure macroeconomic stability, undertake trade and investment reforms, promote deregulation, enhance competitiveness, strengthen institutions, and develop human resources.
Speaking at the seminar, Planning State Minister Zonayed Abdur Rahim Saki said Bangladesh is rebuilding its economy and institutions while addressing the challenges of a fragile economy and a weak financial sector.
"To this end, we need an extension of international support measures and the continued assistance of development partners," he said, adding that cooperation from all stakeholders would be critical to overcoming current challenges and achieving sustainable development.