Published: 12:19 AM, 21 October 2026
Bangladesh expects LDC graduation deferral decision by October
Bangladesh expects a decision by the end of October on its request for a three-year deferment of graduation from the least developed country (LDC) category, Commerce Minister Khandakar Abdul Muktadir said on Monday, as the government seeks additional time to strengthen economic preparedness, secure international market access and accelerate trade negotiations.
The government has prepared a time-bound action plan to utilise the proposed extension, including efforts to conclude a free trade agreement (FTA) with the European Union (EU) before the country's graduation, he said.
“I am very optimistic that we will see a resolution of the matter next week or the week after,” the minister said, expressing hope that a decision would come before the November 24 deadline.
Muktadir, who also serves as industries minister and minister for textiles and jute, made the remarks at a seminar titled “Challenges and Way Forward for Bangladesh's LDC Graduation” at the Economic Reporters Forum (ERF) conference room in Dhaka.
The ERF and the Bangladesh Foreign Trade Institute (BFTI) jointly organised the event. Explaining the status of the deferment request, the minister said Bangladesh had completed the stage involving the United Nations Committee for Development Policy (CDP) and subsequently submitted its request for a three-year extension to the UN Economic and Social Council (ECOSOC).
He added that the European Union and other relevant stakeholders had expressed support for granting Bangladesh additional time.
Explaining the reasons behind the request, Muktadir said Bangladesh had not been adequately prepared to address the economic and financial challenges associated with LDC graduation.
He observed that graduation had often been politically glorified, while insufficient attention had been given to the practical challenges of transitioning away from the special trade preferences and other support available to LDCs.
The priority, he said, should be to maximise the benefits of graduation while building the institutional, economic and industrial capacity needed to manage its potential disadvantages.
The government has shared a time-bound action plan with the EU detailing how Bangladesh intends to use the additional period to improve its readiness, he added.
Securing preferential access to international markets has emerged as a major priority in the government's post-graduation strategy.
Muktadir said Bangladesh aimed to conclude Comprehensive Economic Partnership Agreements (CEPAs) or FTAs with eight to 10 countries during 2026 and 2027.
A chief negotiator has been appointed for the proposed FTA with the EU, while preparations are underway for the first round of technical discussions. However, a date for the negotiations has yet to be finalised.
The government wants to complete the negotiations before Bangladesh graduates from the LDC category, he said. On the EU's Generalised Scheme of Preferences Plus (GSP+) facility, the minister said the government would continue preparations to pursue the option alongside its FTA initiative.
“However, I hope we will not have to take the GSP+ option, as we will complete the FTA before that,” he said. Bangladesh is also advancing its efforts to join the Regional Comprehensive Economic Partnership (RCEP), a major regional trade agreement. According to the minister, the country has received in-principle approval for inclusion, with procedural work now underway.
Beyond trade negotiations, Muktadir stressed that international market access alone would not be sufficient to attract investment. Reliable energy supplies, simpler business procedures and a transparent legal framework for resolving commercial disputes would also be essential.
He underscored the need to strengthen domestic purchasing power while ensuring that export-oriented industries could compete effectively in overseas markets.
Citing the difficulties faced by entrepreneurs, the minister said it took an average of 355 days to complete the process of starting a business, from obtaining a trade licence and opening a bank account to securing initial clearances, obtaining an import registration certificate and opening a letter of credit to import machinery.
Such lengthy procedures can discourage entrepreneurs and undermine investment momentum, he said. To address the problem, the government plans to introduce a single online portal for issuing trade licences. The platform would allow applicants to submit documents and pay fees from anywhere in Bangladesh or abroad, with payments automatically transferred to the relevant local government authority.
The government is also working to bring the services of the Registrar of Joint Stock Companies and Firms (RJSC) fully online, extend the validity of various licences to three to five years and introduce coordinated inspections to replace separate inspections by multiple agencies.
Muktadir expressed hope that the reforms would substantially reduce the time required to obtain licences and permits by 2027.
The minister identified energy shortages as another major obstacle to new investment, saying the government was working to install additional floating liquefied natural gas (LNG) terminals, drill gas wells and expand solar power generation to improve supply.
He also warned that inadequate storage capacity for LNG and essential commodities left Bangladesh vulnerable to disruptions in international supply chains.
Strengthening strategic reserves and expanding storage facilities would therefore be important to improving the country's resilience against external shocks, he said.
The government is pursuing an integrated strategy to boost investor confidence, simplify business operations and safeguard access to international markets as Bangladesh prepares for the next stage of its economic transition, he added.
ERF President Daulat Akhtar Mala chaired the seminar. BFTI Chief Executive Officer Dr Mostafa Abid Khan presented the keynote paper, while ERF Executive Committee member SSM Moinul Haque moderated the event.
