Dhaka Chamber of Commerce and Industry (DCCI) has called for additional time to prepare Bangladesh for its graduation from the Least Developed Country (LDC) status, citing a range of economic challenges and global uncertainties.

Speaking at a seminar titled ‘Bi-annual Economic State and Future Outlook of Bangladesh Economy – Private Sector Perspective’ held on Sunday in Dhaka, DCCI President Taskeen Ahmed emphasised the need for a cautious approach, stating that considering the multidimensional challenges of LDC graduation, Bangladesh should defer graduation for at least three years in order to enhance competitiveness, implement a strong transition strategy, and update relevant policies.

He highlighted slowing global economic growth as a major concern, pointing out that forecasts project global GDP growth at only 2.3 per cent in 2025 due to rising tariffs and trade barriers, and added that most economies were expected to experience further slowdown compared with the past year.

Taskeen Ahmed also said that private investment had fallen to 22.48 per cent of GDP in FY 2025, the lowest level in five years, and suggested that to restore investor confidence, the government needed to ensure stability in the banking sector, maintain political steadiness, and remove bureaucratic bottlenecks to improve the ease of doing business.

He further recommended that corporate tax, particularly for non-listed companies, should be made more competitive to encourage investment.

On the export front, he urged value addition, diversification, exploring new markets, strengthening supply chain connectivity, and enhancing multilateral trade diplomacy.

Taskeen also mentioned that although the US had reduced tariffs on Bangladeshi products from 35 per cent to 20 per cent, the country could not be self-content with this margin and should strive for further tariff cuts to enhance export competitiveness.

Monzur Hossain, member (secretary) of the General Economics Division at the Bangladesh Planning Commission, speaking as the seminar’s chief guest, observed that the final decision on LDC graduation might rest with the next government.

He said that while government agencies were continuing preparations, it was not solely the government’s responsibility, and the private sector also needed to prepare, otherwise the country might still be unprepared even after five years.

Monzur said that although the government viewed LDC graduation positively, stronger preparedness and productivity enhancement were essential.

He referred to international trade challenges and noted that if Bangladesh could manage Donald Trump’s 20 per cent tariffs, it could overcome current challenges as well, citing Nepal’s progress in moving forward with graduation.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, pointed out that despite declining inflation, overall price levels remained high, eroding consumers’ purchasing power.

He suggested that extending facilities such as bonded warehouses and bank-to-bank LC arrangements, which had benefited the RMG sector, to other promising export sectors could help diversify Bangladesh’s export basket.

Mustafiz also emphasised the need for stronger anti-corruption measures, accelerated digitalisation, mobilisation of domestic savings, and increasing tax revenue, warning that heavy reliance on loans to finance the ADP was unsustainable.

He recommended seeking an LDC graduation deferral if necessary, while simultaneously improving the business environment and enhancing skills development, particularly for SMEs.

The seminar also featured presentations by AK Enamul Haque, director general of Bangladesh Institute of Development Studies; Mahmud Salahuddin Naser, director (research) of the Monetary Policy Department at Bangladesh Bank; Nawshad Mustafa, director of SME and Special Programmes Department at the bank; and Md Rabiul Islam, economics officer at the South Asia Department of the Asian Development Bank resident mission in Bangladesh.