Dhaka: Country’s key entrepreneurs and business chambers today stressed the need for extending the time for LDC graduation by five to six years in a bid to take necessary preparations alongside ensuring export diversification, building human capital and attracting quality FDI. “Our entrepreneurs and business chambers strongly support graduation. However, we stress the need for 5 to 6 years deferral (for graduation). If so, the government and also the private sector can take necessary preparations during this time and thus there won’t be any such problem,” said ICC Bangladesh President Mahbubur Rahman.
According to Bangladesh Sangbad Sangstha, Mahbubur Rahman emphasized the importance of export diversification and harnessing existing potentials, warning that failure to do so would hinder the country’s progress. He shared these insights during a press briefing on “LDC Graduation: Challenges Ahead” organized by ICC Bangladesh and major national trade organizations at a city hotel.
He further explained that entrepreneurs and business chambers are seeking an extension to LDC graduation to secure trade deals with regions such as the EU, UK, ASEAN, and Gulf states to offset potential tariff shocks from the US. The focus should also be on driving export diversification into sectors like pharmaceuticals, IT, leather, agro-processing, and light engineering. Additionally, building human capital for Industry 4.0, attracting quality FDI, and strengthening governance and climate resilience were highlighted as critical priorities.
Mahbubur Rahman also pointed out several challenges, including external debt stress, financial strain, declining FDI, global trade tensions, climate issues, electricity and gas constraints, logistics bottlenecks, currency devaluation, and economic pressures anticipated after the July 2024 uprising. He mentioned that a joint statement with recommendations would be submitted to the government.
Efforts are being made to diversify exportable items beyond the major export product, RMG, to effectively face LDC graduation challenges. Mahbubur Rahman indicated ongoing interactions with the government at various levels regarding LDC graduation, emphasizing a collective approach to address the situation.
Regarding government involvement, Mahbubur Rahman stated that it is the government’s role to make decisions concerning LDC graduation, while they will continue to engage with the government on the matter. He underscored the need to avoid premature graduation to prevent potential problems.
He refuted allegations of government reluctance towards LDC graduation, stating that the process has advanced significantly and remains a continuous endeavor. Addressing reforms, he noted that they are an ongoing process, with various reforms progressing in different contexts.
Mahbubur Rahman stressed that successful graduation involves defending market access through smart trade diplomacy, building competitiveness through technology and infrastructure, and acting urgently. He envisioned Bangladesh transforming LDC graduation into an opportunity, aiming to position itself as a competitive middle-income economy by 2031.
BGMEA President Mahmud Hasan Khan noted that while BGMEA stands to benefit from the graduation process, it may face challenges if the graduation is not timed correctly. ICC Bangladesh Vice President Naser Ezaz Bijoy cited supply chain disruptions, political issues, and climate vulnerability as reasons to seek an extension for LDC graduation.
Bangladesh has already met all three UN criteria-GNI, Human Assets Index, and Economic Vulnerability Index-through consecutive reviews, setting the stage for official graduation from the Least Developed Country category in November 2026. This milestone reflects Bangladesh’s resilience, growth, and industrial progress over the past 50 years.
Mahbubur Rahman highlighted that other countries like Maldives and Vanuatu have delayed their UN-designated LDC graduation despite meeting eligibility criteria, often due to economic or political challenges. He emphasized that seeking additional time to prepare for post-LDC challenges is not uncommon, especially when facing political and external shocks or lacking essential reforms and infrastructure for a sustainable transition.
The event saw the presence of notable figures such as ICC Vice President A. K. Azad, DCCI Senior Vice President Razeev H Chowdhury, MCCI President Kamran T. Rahman, FICCI Board Member Rubaba Dowla, and several business leaders, including Abdul Hai Sarker, Sayeed Ahmed, Mohammad Hatem, Mohammed Nazmul Hassan, Anwar-ul Alam Chowdhury (Parvez), Abdul Muktadir, Mohammad Iqbal Chowdhury, and M. E. Chowdhury Shameem.