Bangladesh set to get three more years before LDC exit

Bangladesh is set to receive an additional three years to prepare for its graduation from the Least Developed Country (LDC) category, after a United Nations committee recommended extending the transition period until November 24, 2029.

The recommendation was made by the UN Committee for Development Policy (CDP) in response to Bangladesh’s formal request for more time amid ongoing global economic uncertainties. The country had originally been scheduled to graduate from the LDC category in November 2026.

According to the Economic Relations Division (ERD), the extension would allow Bangladesh additional time to implement its Smooth Transition Strategy and prepare for the challenges associated with the loss of LDC-specific trade and development benefits. The proposal now awaits approval by the UN General Assembly.

The CDP noted that Bangladesh continues to comfortably meet all three graduation criteria -- per capita income, human assets, and economic vulnerability -- and faces no immediate risk of falling below the required thresholds. However, it acknowledged that the lingering effects of the COVID-19 pandemic, the Russia-Ukraine war, Middle East tensions, and global economic instability have slowed structural reforms and increased pressure on the economy.

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The committee also urged Bangladesh to use the extended period to strengthen financial-sector stability, boost domestic revenue collection, enhance productive capacity, diversify the economy, and better prepare the private sector for a post-LDC environment.

Government officials expect the UN General Assembly to make a final decision on the recommendation later this year.