Entrepreneurs, business chambers seek 5-6 years for LDC graduation

Country's key entrepreneurs and business chambers on Sunday stressed the need for extending the time for LDC graduation by five to six years in a bid to take necessary preparations alongside ensuring export diversification, building human capital and attracting quality FDI.

"Our entrepreneurs and business chambers strongly support graduation. However, we stress the need for 5 to 6 years deferral (for graduation). If so, the government and also the private sector can take necessary preparations during this time and thus there won't be any such problem," said ICC Bangladesh President Mahbubur Rahman.

He said that if the country's export basket could not be diversified and the exiting potentials are not increased further, the country would not be able to move much forward.

Mahbubur said these while addressing a press briefing on "LDC Graduation: Challenges Ahead" organised by ICC Bangladesh and major national trade organisations at a city hotel Sunday.

He said that the entrepreneurs and business chambers are seeking such extension to LDC graduation to secure trade deals (EU, UK, ASEAN, Gulf) to offset US tariff shocks; drive export diversification into pharma, IT, leather, agro-processing, and light engineering; build human capital for Industry 4.0-automation, Al, advanced manufacturing; attract quality FDI-investors who bring technology and sustainability, not just cheap capital; strengthen governance and climate resilience, ensuring competitiveness in a turbulent global economy.

Citing some of the current economic realities, the ICC Bangladesh President cited external debt stress; financial strain; decline in FDI; global trade tensions; climate pressure, electricity and gas constraints; logistics bottlenecks, devaluation of Taka and economic pressures after July 2024 uprising.

Answering a question, Mahbubur Rahman said that a signed joint statement with recommendations would be submitted before the government.

He said that instead of relying on only major export product (RMG), efforts are on to diversify the exportable items to face the LDC graduation related challenges.

Mentioning that they are interacting with the government at various levels on the issue of LDC graduation, he said, "We're trying to address the situation in a combined manner so that we can do it."

Mahbubur Rahman told another questioner that it is the government which would take all the decisions on the LDC graduation related matters while they would continue to interact with the government in this regard. "If there is any premature graduation, then we may fall into a problem," he added.

Referring to his interaction with various advisers of the interim government, the ICC Bangladesh President said that the government is positive over the matter.

Ruling out the allegation of 'being reluctant' over LDC graduation by the government, Mahbubur said that the government is not at all reluctant, rather the issue has come a long way overcoming various levels, adding, "It's a continuous process."

Replying to another question, he said that reforms are a continuous process while various types of reforms would move forward in different context. Besides, he said, the banking sector reforms would not happen overnight.

Mahbubur said the debate is not "if" we graduate, but "how we graduate".

He, however, said successful graduation needs defending market access with smart trade diplomacy; building competitiveness through technology, skills and infrastructure; acting with urgency; branding Bangladesh; financial sector reform; ease of doing business; diversified and reliable energy; modern logistics and connectivity; exchange rate stability; debt management and stability.

"We believe if managed properly, Bangladesh can transform LDC graduation from a challenge into an opportunity, positioning itself as a strong and competitive middle-income economy by 2031...let this be clear ...Graduation is certain, success is not guaranteed and it depends on how urgently and collectively we act," he added.

BGMEA President Mahmud Hasan Khan said that although the BGMEA is the biggest beneficiary and the biggest stakeholder in the graduation process, it may become the biggest sufferer unless the graduation takes place in the right time.

ICC Bangladesh Vice President Naser Ezaz Bijoy said that considering the supply chain disruptions, political disruption and climate vulnerability, there is no reason for not seeking extension to the LDC graduation.

Bangladesh has already fulfilled all three UN criteria-GNI, Human Assets Index, and Economic Vulnerability Index-through two consecutive reviews, setting the country on track to officially graduate from the Least Developed Country (LDC) category in November 2026.

This achievement is a matter of national pride, showing Bangladesh's 50 years of resilience, growth, and industrial progress.

Unlike Maldives' overdependence on tourism or Vanuatu's climate fragility, Bangladesh must avoid over-reliance on garments and strengthen climate resilience, institutional governance and infrastructure development.

Several countries like Maldives, Vanuatu, have delayed their UN-designated LDC (Least Developed Country) graduation despite meeting the eligibility criteria, usually due to economic or political challenges.

"These examples show it's not uncommon for countries to seek more time to prepare for post-LDC challenges-especially when facing political and external shocks or lacking essential reforms and Infrastructure to support a sustainable transition." added the ICC Bangladesh president.

ICC Vice President AK Azad, DCCI Senior Vice President Razeev H Chowdhury, MCCI President Kamran T Rahman, FICCI Board Member Rubaba Dowla, business leaders including Abdul Hai Sarker, Sayeed Ahmed, Mohammad Hatem, Mohammed Nazmul Hassan, Anwar-ul Alam Chowdhury (Parvez), Abdul Muktadir, Mohammad Iqbal Chowdhury, M. E. Chowdhury Shameem were present, among others, on the occasion.