Accra:A decision on Bangladesh's request to delay its graduation from the least developed country (LDC) category by three years is expected by the end of October, according to Commerce Minister Khandakar Abdul Muktadir.
According to Bangladesh Sangbad Sangstha, the government has developed a time-bound action plan to use the additional time to better prepare for graduation. This plan includes concluding negotiations on a free trade agreement (FTA) with the European Union before the graduation takes place.
Addressing a seminar titled "Challenges and Way Forward for Bangladesh's LDC Graduation" at the Economic Reporters Forum conference room, Muktadir, who also serves as the Minister of Industries and the Minister of Textiles and Jute, detailed the progress of the deferral request. Bangladesh has passed the stage of the United Nations Committee for Development Policy and has submitted a request to the UN Economic and Social Council for a three-year extension. The European Union and other relevant stakeholders have expressed agreement with granting Bangladesh additional time.
Muktadir expressed optimism that a resolution would be reached soon, ideally before the November 24 deadline. He explained that the need for an extension arises from Bangladesh’s unpreparedness to tackle the challenges associated with LDC graduation, noting that the economic and financial difficulties have been overlooked in favor of political glorification.
The government has shared a detailed plan with the EU on utilizing the additional period and aims to finalize Comprehensive Economic Partnership Agreements or FTAs with eight to ten countries during 2026 and 2027. A chief negotiator has been appointed for FTA talks with the EU, and preparations for the first round of technical discussions are underway.
Regarding the EU's Generalised Scheme of Preferences Plus (GSP+) trade facility, Muktadir said the government is working on this option but hopes to complete the FTA beforehand. Efforts to join the Regional Comprehensive Economic Partnership are also progressing, with Bangladesh having received in-principle approval for inclusion.
Highlighting impediments to investment, Muktadir pointed out the lengthy process for entrepreneurs to start a business, which averages 355 days. To streamline this, the government plans to introduce a single online portal for issuing trade licenses and is working to fully digitize the services of the Registrar of Joint Stock Companies and Firms.
Energy shortages were identified as a major barrier to investment, with initiatives underway to install additional floating LNG terminals, drill gas wells, and expand solar power generation. Muktadir emphasized the need for strategic reserves and improved storage facilities to bolster resilience against international supply chain disruptions.
The seminar was chaired by ERF President Daulat Akhtar Mala, with BFTI Chief Executive Officer Dr. Mostafa Abid Khan and ERF Executive Committee member SSM Moinul Haque participating in key roles.