Businesses and experts have called on the government to consider seeking a deferral of Bangladesh’s graduation from the Least Developed Country (LDC) category, citing ongoing macroeconomic vulnerabilities.

They stressed that any appeal could emphasise pressing concerns such as health and food security, alongside broader economic fragilities.

The call came during a seminar titled ‘LDC Graduation and Bangladesh’s Preparedness’ organised by the Economic Reporters’ Forum in Dhaka on Saturday.

Speakers highlighted challenges including energy shortages, dwindling foreign reserves, low global competitiveness, and the potential impact on export earnings, warning that Bangladesh might need additional time to prepare adequately for graduation.

Policy Exchange Bangladesh chairman and chief executive officer M Mashrur Reaz said that Bangladesh was on track to graduate from LDC status, but, given the current situation, additional time might be warranted.

He observed that, after reviewing previous data, it was clear that the country had been fully prepared; however, three macroeconomic challenges—health security, food security, and energy security—remained vulnerable.

Mashrur said that the country was grappling with an energy crisis that had been building since 2011 due to its dependence on imports and warned that an impending energy famine could severely impact the economy.

He said that Bangladesh faced unique export challenges compared with other graduating countries such as Laos and Cambodia.

He also mentioned that foreign exchange reserves had been depleting by over $700 million per month under the previous regime and observed that, although the interim government had taken steps to stabilise reserves, it had faced more than 600 instances of unrest in the past year.

Mashrur said that Bangladesh’s poor rankings in global competitiveness, logistics, and trade facilitation indices, noting that the country was ranked 105 in the Global Competitiveness Index, while competitors were ranked below 60.

He said that Bangladesh’s share in global value chains was only 20–22 per cent, compared with Vietnam’s 66 per cent, emphasising the urgent need for reforms to strengthen competitiveness.

Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem claimed that during the previous regime, the graduation decision had been taken based on false information and manipulated data, and alleged that the regime had continuously overstated export figures by about $5 billion per year.

He said that the new government now had an opportunity to delay the graduation process and recalled that the chief adviser had mentioned in his speech that the economy was on life support, which was reason enough to seek a delay.

Hatem warned that recently graduated countries had little to lose, whereas Bangladesh faced the risk of losing a significant portion of its export earnings.

He cautioned that if the European Union revised its rules, the country might not even qualify for GSP Plus benefits.

He maintained that, although Bangladesh had made some progress—from ICU to life support—it still required at least three more years under a deferral policy.

Hatem also remarked that exporters were still unaware of the government’s policy as no meetings had yet been held with them.

Bangladesh Garment Manufacturers and Exporters Association senior vice president Inamul Haq Khan said that while exporters desired graduation, they needed at least three more years to adjust.

He stressed the need for improvements in ports, government-to-government agreements, workforce training, and supportive policies to remain competitive after LDC graduation.

Bangladesh Association of Pharmaceutical Industries CEO Mustafizur Rahman warned that foreign pharmaceutical firms might leave the country after graduation, which could push up local drug prices.

He said that the country required skilled manpower and stronger research to expand exports, and more preparation time before graduation.

The chief adviser’s special assistant, Anisuzzaman Chowdhury, speaking as chief guest, urged that the private sector should begin lobbying through international partners to defer Bangladesh’s LDC graduation.

He also said that the final decision would be taken at the UN General Assembly, where the views of all member states would be relevant.

Anisuzzaman explained that the agenda for the upcoming session had already been fixed, so if the issue were to be addressed, it might have to wait until the next year’s General Assembly under an elected government.

He said that Bangladesh, along with Nepal and Laos, was scheduled to graduate from the LDC list in 2026, and that it would be necessary to approach the UN Committee for Development Policy to justify the need for more time.

Anisuzzaman recalled that the three-year delay already granted due to COVID had shifted the timeline from 2024 to 2026, and warned that any further deferral would require very strong arguments.

Chief adviser’s press secretary Shafiqul Alam also spoke at the event. The seminar was presided over by ERF president Doulat Akter Mala, while secretary general Abul Kasem moderated the session.