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The government has formally requested a three-year deferment of Bangladesh’s graduation from the least developed country (LDC) category, sending a letter to the United Nations Committee for Development Policy (CDP).
According to officials at the Economic Relations Division (ERD), the letter, signed by ERD Secretary Md Shahriar Kader Siddiky on 18 February, was sent to the CDP under the United Nations.
ERD officials said the CDP is scheduled to hold a meeting from 24 to 28 February, where Bangladesh’s request and related issues will be reviewed.
In the letter seeking deferment, the government noted that the preparatory period granted to Bangladesh was primarily intended to address post-Covid pandemic challenges over five years. However, during this period, multiple global shocks affected the economy.
The Russia-Ukraine war led to higher fuel and food prices, while tighter global monetary policies and the impact of a global slowdown further strained the economy. Disruptions in the shipping sector and uncertainty in international trade also complicated the situation.
Officials further mentioned that domestic changes, a decline in investment, slower revenue growth and reduced GDP growth meant that the expected progress in implementing structural reforms could not be achieved. As a result, although efforts were made to utilise the preparatory period properly, the necessary policy and institutional adjustments required for LDC graduation could not be fully implemented.
The letter also stated that the current global trade environment is marked by heightened uncertainty, including uncertainty over securing GSP Plus benefits. Policy changes by major trading partners could exert pressure on Bangladesh’s competitiveness, requiring additional time to address the challenges.
In this context, Bangladesh has formally sought a three-year “crisis assessment” and a possible extension of the graduation timeline.
Sources concerned said an initial assessment report may be prepared within about two weeks after the February meeting. The CDP will then provide its observations and recommendations, with a final decision expected in September.
ERD officials noted that last year, at Bangladesh’s request, the UN conducted an assessment highlighting the country’s economic challenges. However, it did not provide specific recommendations and instead described the graduation process as “challenging” for Bangladesh.
The final decision will be taken at the UN General Assembly. The full recommendation and approval process may continue until September or October.
Officials said the process has now formally begun, and the next steps will depend on the outcome of the ongoing assessment.
https://thedailyexpress.news/news/business/1f10e446-24d8-6ad0-b807-0eb90a7167c6