The government has requested a three-year postponement of the country’s graduation from Least Developed Country (LDC) status

The government has formally sought a three-year postponement 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 Siddiqui on Wednesday (18 February)—was submitted to the CDP under the United Nations.

ERD officials said the CDP is scheduled to meet from 24 to 28 February to examine Bangladesh’s request along with related matters. In the letter, the government explained that the preparatory period granted to Bangladesh was originally intended to address post-Covid economic challenges over five years. However, several global shocks disrupted that plan.

The Russia-Ukraine war triggered sharp increases in fuel and food prices, while tighter global monetary policies and a worldwide economic slowdown placed additional pressure on the economy. Disruptions in global shipping and uncertainty in international trade further compounded the difficulties.

Officials also noted that domestic transitions, declining investment, slower revenue growth, and reduced GDP expansion hindered the anticipated progress in structural reforms. Although efforts were made to make effective use of the preparatory period, the required policy and institutional adjustments for LDC graduation could not be fully completed.

The letter further pointed out that the current global trade environment remains highly uncertain, including concerns over securing GSP Plus benefits. Policy shifts by major trading partners could affect Bangladesh’s competitiveness, necessitating more time to adapt.

In this context, Bangladesh has formally requested a three-year “crisis assessment” and a potential extension of the graduation timeline.

Sources said an initial assessment report may be prepared within about two weeks after the February meeting. The CDP will then issue its observations and recommendations, with a final decision expected in September.

ERD officials added that last year, at Bangladesh’s request, the United Nations conducted an assessment outlining the country’s economic challenges. However, it stopped short of offering specific recommendations, describing the graduation process as “challenging” for Bangladesh.

The final decision will be taken at the UN General Assembly, and the full recommendation and approval process may continue until September or October.

Officials said the formal process is now underway, and subsequent steps will depend on the outcome of the ongoing assessment.