Bangladesh expects a decision this month on its request to defer graduation from the least developed country (LDC) category by three years, Commerce, Industries, and Textiles and Jute Minister Khandaker Abdul Muktadir said on Monday.
The government has prepared a time-bound action plan to make effective use of the additional period, if granted. It also aims to conclude negotiations on a free trade agreement (FTA) with the European Union (EU) before the country graduates from the LDC category.
The minister made the remarks while speaking as chief guest at a seminar on the challenges and next steps for Bangladesh’s LDC graduation, organised jointly by the Economic Reporters Forum (ERF) and the Bangladesh Foreign Trade Institute (BFTI) at the ERF conference room in Dhaka.
Explaining the progress of Bangladesh’s request, Muktadir said the country had passed the relevant stage of the United Nations Committee for Development Policy (CDP) process and had subsequently sought an additional three years from the UN Economic and Social Council (ECOSOC).
He said the EU and other relevant parties had also expressed agreement with allowing Bangladesh more time.
“I am very optimistic that we will see a resolution of the matter next week or the week after,” the minister said.
He expressed hope that a decision would come before the November 24 deadline.
Explaining the request for an extension, Muktadir said Bangladesh had not been adequately prepared to address the challenges associated with LDC graduation. According to him, greater emphasis had been placed on presenting graduation as a political achievement than on preparing for its economic and financial implications.
As a result, insufficient attention had been given to maximising the potential benefits of graduation and building the capacity needed to address its adverse effects, he said.
The minister said the government had shared a time-bound action plan with the EU outlining how Bangladesh would use the additional period if the extension were granted.
Government Targets Trade Agreements With 8–10 Countries
Muktadir said the government was pursuing trade agreements with various countries to maintain market access for Bangladeshi goods and services.
The target is to conclude comprehensive economic partnership agreements (CEPAs) or free trade agreements with eight to 10 countries during 2026 and 2027, he said.
A chief negotiator has been appointed for FTA negotiations with the EU, and preparations are underway for the first round of technical discussions. However, a date for the talks has yet to be set.
The government wants to complete the negotiations before Bangladesh graduates from the LDC category, the minister said.
Preparations to secure Generalised Scheme of Preferences Plus (GSP+) benefits in the EU market will continue alongside the FTA initiative.
“However, I hope we will not need to take the GSP+ option, as we will complete the FTA before that,” he said.
The process of joining the Regional Comprehensive Economic Partnership (RCEP) is also progressing. Muktadir said in-principle approval had been obtained for Bangladesh’s inclusion, with procedural work now underway.
Business Reforms to Improve Investment Climate
The minister said expanding access to international markets must go hand in hand with uninterrupted energy supplies, simpler business procedures and a transparent legal framework for dispute resolution.
He stressed the need to strengthen domestic purchasing power to support sales of locally produced goods while expanding access to foreign markets to boost exports.
Illustrating the delays faced by entrepreneurs, Muktadir said it takes an average of 355 days to complete the process from obtaining a trade licence, opening a bank account and securing initial clearances to obtaining an import registration certificate and opening a letter of credit to import machinery.
Such lengthy procedures make it difficult to sustain entrepreneurs’ interest and momentum, he said.
To address the problem, the government plans to introduce a single online portal for trade licences. Under the proposed system, applicants will be able to submit documents and pay fees from anywhere in Bangladesh or abroad, with the fees automatically transferred to the relevant local government authority.
Other planned measures include fully digitising the services of the Registrar of Joint Stock Companies and Firms (RJSC), extending the validity of various licences from three to five years and replacing separate inspections by different agencies with coordinated inspections.
Muktadir expressed hope that these reforms would significantly reduce the time entrepreneurs spend waiting for licences and permits by 2027.
Energy Security and Strategic Reserves
Identifying the energy shortage as a major obstacle to new investment, the minister said work was underway to establish new floating storage and regasification unit (FSRU) terminals for liquefied natural gas (LNG) and drill additional gas wells. The government is also taking steps to expand solar power generation.
He said Bangladesh remained vulnerable to disruptions in international supply chains because it lacked adequate storage capacity for LNG and essential commodities.
The minister emphasised the need to develop strategic reserves and stronger storage infrastructure to help the country cope with supply uncertainties.
Muktadir said the government was pursuing a coordinated strategy to strengthen investor confidence, simplify business operations and expand Bangladesh’s access to global markets.
ERF President Daulat Akter Mala chaired the seminar, while BFTI Chief Executive Officer Dr Mostafa Abid Khan presented the keynote paper. ERF executive committee member SSM Moinul Haque moderated the event.