The upcoming government has until February 23 to submit an application to the United Nations Committee for Development Policy (UN CDP) if it plans to postpone Bangladesh’s transition from the least-developed country (LDC) category to developing nation status. A report titled “Graduation from LDC: Challenges, Progress and Way Forward,” drafted by the finance adviser to the previous interim government and delivered to the new finance minister, highlights recommendations from a high-level committee on LDC graduation.
Bangladesh is set to graduate from LDC status on November 24 after meeting all three UN criteria – income, human assets, and economic and environmental vulnerability – in two consecutive triennial assessments by the UN CDP. A third evaluation is currently ongoing in preparation for the final transition.
Considering potential risks post-graduation and recent global and domestic uncertainties, the report proposes that Bangladesh, alongside other graduating nations like Nepal and Lao PDR, collaborate to request a deferment of graduation from the UN CDP until 2030. An Independent Assessment by the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UNOHRLLS) has also raised points on a potential deferment.
The application for deferment could be presented ahead of the UN CDP’s annual plenary scheduled for February 24–27. It is imperative for the new government to act promptly by February 23 and direct the Permanent Representative of Bangladesh’s mission in New York to raise the issue at the plenary.
To ensure a smooth transition, a Smooth Transition Strategy (STS) has been developed in collaboration with UN-ESCAP, aligning with UN guidelines and involving all relevant stakeholders. The Economic Relations Division (ERD) is closely monitoring the progress of implementation.
The ERD has drafted a proposal seeking the government’s policy stance on the matter, indicating that Bangladesh faced challenges in adequately preparing for graduation due to various internal and external disturbances, including the impact of the pandemic. These challenges have strained the macroeconomy, hindering the anticipated graduation preparations.
Citing the current economic downturn, private sector capacity constraints in handling graduation readiness, and post-graduation obstacles, the proposal recommends that Bangladesh formally request the UN-CDP to extend the preparation period by three more years until November 24, 2029, before February 22.
Finance ministry officials mentioned that upon approval from the prime minister, the ERD would submit the proposal seeking a deferment of graduation until 2030. Commerce Minister Khandakar Abdul Muktadir affirmed yesterday that steps have been initiated to postpone Bangladesh’s graduation from the LDC category, with coordination between his ministry and the ERD underway.
The UN graduation framework outlines distinct avenues through which countries can, under specific circumstances, seek additional time before transitioning out of the LDC category. A UN CDP mission visited Bangladesh in November of the previous year to evaluate the country’s readiness for graduation. The mission emphasized that the end-February 2026 plenary of the UN CDP is the final structured opportunity to pursue a deferral through the standard review process.
Failure to utilize this opportunity would require any subsequent deferral request by the Bangladesh government to be made under the crisis or emergency provisions of the CDP’s Enhanced Monitoring Mechanism (EMM) framework before the scheduled graduation in November 2026. The mission also noted that such provisions are time-bound, evidence-based, and subject to CDP assessment followed by endorsement from the UN General Assembly based on experiences of other graduating countries.