A visiting United Nations assessment team has requested Bangladeshi businesses to provide a roadmap for the Smooth Transition Strategy (STS), aimed at ensuring the country’s sustainable graduation from Least Developed Country (LDC) status.

Business leaders, during a meeting held on November 9, told the UN delegation that although the STS had been adopted, its implementation has been slow, and it may not be fully executed within the next year.

They warned that Bangladesh would need at least five more years to complete preparations for a smooth transition.

‘The UN team wanted to understand the detailed challenges faced by the industry and requested a roadmap outlining preparations if a time extension is granted,’ said Fazlee Shamim Ehsan, President of the Bangladesh Employers Federation (BEF), who attended the meeting.

He said that the STS has seen minimal implementation over recent years, and adequate preparation for LDC graduation remains lacking.

Ehsan also highlighted Bangladesh’s continued dependence on a single export product—the ready-made garment sector—and a limited number of international markets.

He said the business community would soon share a detailed roadmap with the UN team, outlining preparations over the next five years.

The meetings, held at the UN House in Gulshan, involved a three-member UN delegation led by Roland Mollerus, Director of the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States (UN-OHRLLS).

The delegation is conducting an independent assessment of Bangladesh’s readiness for LDC graduation and is also scheduled to meet government officials and political leaders.

Representatives from the readymade garment sector, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), and other major business organisations attended the meetings.

According to a statement by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the delegation was informed of several critical challenges.

Mahmud Hasan Khan, BGMEA President, said: ‘At this crucial juncture of LDC graduation, Bangladesh’s apparel industry is simultaneously facing rising operational costs and infrastructural constraints.’

He also pointed to logistics inefficiencies, noting that despite existing delays at ports, charges at Chattogram Port increased by 41 per cent in October 2025, while long transportation times on roads further undermine competitiveness.

Citing a 2023 wage hike and an enhanced annual increment of 9 per cent last year, BGMEA president said that a 60 per cent reduction in cash incentives without compensatory support measures has placed the export-oriented sector at high risk, increasing economic vulnerability.

He further identified key macroeconomic weaknesses, including slower GDP growth, persistent inflation above 8 per cent, a low tax-to-GDP ratio of 6.6 per cent, and foreign exchange reserves of $27.5 billion (as per BPM6), as major challenges for the country during the transition.