The interim government has reaffirmed its commitment to graduating from the Least Developed Countries (LDC) category as scheduled by the United Nations, on November 24, 2026. Despite calls from sections of the business community to delay the transition, the government has made clear that graduation will proceed on time.

A committee led by Special Assistant to the Chief Advisor (State Minister) Anisuzzaman Chowdhury has been tasked with ensuring a smooth transition. On Sunday evening, Chowdhury reiterated that Bangladesh will graduate on schedule. Similarly,

Mostafizur Rahman, a special fellow at the Center for Policy Dialogue (CPD), noted that the UN is unlikely to accept requests for postponement due to the absence of strong arguments.

On March 13, the Advisory Council of the interim government confirmed the 2026 graduation timeline and decided to form a committee to implement the **Smooth Transition Strategy (STS)**. This six-member expert body, chaired by Chowdhury, includes:

* Mostafizur Rahman (CPD)

* Manjur Hossain (Planning Commission, General Economics Division)

* Md. Abdur Rahim Khan (Ministry of Commerce, Export Division)

* Mohammad Abdur Razzak (Chairman, RAPID)

* Kazi Iqbal (Chairman, Finance Committee, BIDS)

The committee is working in line with the STS, which was approved and published earlier.

Bangladesh began the LDC graduation process in **2018**. Initially set to exit in **2024**, the timeline was extended to 2026 due to the impact of Covid-19. Bangladesh, which joined the UN’s LDC list in **1975**, has long benefited from duty-free trade and other international support mechanisms. Currently, there are 44 LDCs worldwide.

Implications of LDC Graduation

Challenges

Export Sector Duty-free privileges will be withdrawn, exposing Bangladeshi exports to regular tariffs. The WTO estimates potential export losses of $5.37 billion annually (Tk 45,500 crore)**.

Pharmaceuticals, Intellectual property regulations will tighten, requiring payments for patents. This may raise medicine prices and reduce affordability, though Bangladesh’s pharmaceutical industry is now on a strong footing.

Concessional Loans & Subsidiesccess to easy loans and tax exemptions will decline. Providing support in agriculture, industry, and remittances may become more difficult.

**Opportunities:**

Global Status; Graduation will reflect Bangladesh’s economic strength, formally recognizing it as a developing country.

Access to Financing: Greater ability to secure larger loans from international institutions, albeit at higher interest rates.

Foreign Investment:** Graduation may boost investor confidence, provided the domestic investment climate is favorable.

While the US offers no tariff privileges, the EU has confirmed GSP benefits until **2029**, ensuring continued support for Bangladesh’s key garment sector.