Bangladesh seeks 3-year deferral of LDC graduation from UN

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Bangladesh seeks 3-year deferral of LDC graduation from UN

B Mirror Report: Prime Minister Tarique Rahman has formally requested the United Nations to defer Bangladesh’s graduation from the Least Developed Country (LDC) category by at least three years, citing multiple economic and global challenges.

In a letter sent to UN Secretary-General António Guterres on Sunday, the premier sought the extension to ensure a smoother and more sustainable transition. Officials confirmed the development on Tuesday.

Bangladesh is currently scheduled to graduate from the LDC category in November this year. If approved, the proposed deferral would extend the transition period until November 2029.

According to government sources, the request comes in the wake of a “polycrisis” involving both domestic and international shocks that disrupted the country’s five-year preparatory period. These include the lingering impacts of the Covid-19 pandemic, climate-related disasters such as the 2024 floods, and global economic instability driven by geopolitical tensions.

In his letter, Rahman acknowledged that Bangladesh has met all three eligibility criteria for graduation per capita income, Human Assets Index, and Economic Vulnerability Index but emphasized that much of the preparation time was lost to crisis management.

He also highlighted a fragile macroeconomic situation inherited by the current administration, marked by capital flight, limited private sector financing, a weakened capital market, rising poverty, and stress in the banking sector.

The prime minister further pointed to declining foreign aid for Rohingya refugees, continued inflationary pressure, falling foreign exchange reserves, and political instability, including the events surrounding the July 2024 uprising.

Officials say the delay is crucial to avoid a “preference cliff” after graduation, when Bangladesh would lose key international support measures such as duty-free and quota-free access to major export markets.

The request aligns with earlier recommendations from business leaders and economists, who had urged the government to coordinate with other graduating nations like Nepal and Lao PDR for a possible extension. The United Nations is yet to respond to the proposal.

 

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