The withdrawal of the least developed country (LDC)-specific trade benefits will create fresh challenges for Bangladesh's exports, the pharmaceutical industry, and international trade, Commerce Minister Khandakar Abdul Muktadir has said.
Although Bangladesh had fulfilled the criteria for graduating from the LDC category, the bigger challenge was to ensure that the transition was sustainable and beneficial for the economy, he told an event on Wednesday.
"Bangladesh should move forward with LDC graduation only after undertaking the necessary structural and institutional reforms," he said while addressing the strategic insight session titled "Bangladesh's Upcoming LDC Graduation: Navigating the Challenges of Sustainable Transition".
The programme was organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at the ICMAB Bhaban in the capital.
Muktadir -- who also oversees the industries, as well as the textiles and jute ministries -- attended the programme as the chief guest, while ICMAB President Md Kausar Alam presided over it.
The event brought together policymakers, business leaders, economists, professionals, and academics to assess Bangladesh's preparedness for the post-LDC era and identify measures needed to strengthen export competitiveness, attract investment, improve productivity, and ensure sustainable economic growth.
The commerce minister said a significant portion of the country's industrial sector was operating below capacity due to energy shortages.
He said the government was working to increase energy supplies, expand liquefied natural gas (LNG) infrastructure, restore stability in the banking sector, and simplify procedures for setting up and operating businesses.
Expressing optimism about Bangladesh's prospects, he said an adequate and reliable gas supply would significantly boost industrial production and support stronger economic growth.
Delivering the keynote presentation, Professor Dr Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), outlined the major challenges Bangladesh would likely face after LDC graduation, including intensified global competition, the gradual erosion of preferential tariff benefits, and the need for broader economic transformation.
He stressed the importance of raising productivity, diversifying exports, and accelerating policy and institutional reforms to enhance Bangladesh's competitiveness in the post-graduation period.
In his welcome address, the ICMAB president highlighted the role of professional accountants in supporting businesses and policymakers during the country's economic transition.
He also outlined plans to ensure the rapid and fully digital delivery of essential services for investors, including company registration, trade licensing, and import-export registration.
Md Abdur Rahman Khan, former chairman of the National Board of Revenue (NBR) and erstwhile president of ICMAB, said good governance, infrastructure development, policy continuity, and political stability would be critical to Bangladesh's success after LDC graduation.
He said Bangladesh possessed enormous potential but emphasised that effective implementation of policies and strategies would determine whether the country could fully realise its opportunities.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said increasing domestic value addition and export retention had become more important than simply expanding export volumes.
He said the ready-made garment sector could achieve at least 10 per cent growth if the energy situation improved and the industry gained greater access to low-cost financing.
Besides, he urged the Bangladesh Bank to expand its special financing facilities for the sector.
The BGMEA president, Radiant Group Chairman Md Nasser Shahrear Zahedee, and former NBR chairman Rahman attended the programme as special guests.
Eleash Mridha, managing director of PRAN Group, participated as the discussant, while Arif Khan, former president of ICMAB, moderated the session.
Monjur Md Shaiful Azam, secretary of ICMAB, delivered the vote of thanks.
The speakers agreed that while LDC graduation would mark a significant milestone in Bangladesh's development journey, its long-term success would depend on comprehensive structural reforms, energy security, banking sector stability, skilled human resources, policy consistency, and the creation of a predictable, investment-friendly business environment.
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