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Dhaka, August 30, 2025 – Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), emphasized that achieving Least Developed Country (LDC) graduation is not solely a government accomplishment but a national achievement involving the private sector and the public. Speaking at a shadow parliament session titled "Bangladesh’s Capability in Facing LDC Graduation Challenges" held at the Bangladesh Film Development Corporation, he highlighted the need for continued preparation despite any requests to delay LDC graduation. He stressed that reviving investment requires a credible election and a stable government, as investors seek assurance of political stability.
The event was organized by Debate for Democracy and chaired by Hasan Ahmed Chowdhury Kiron, Chairman of Debate for Democracy.
To address LDC graduation challenges, Rahman underscored the need for financial sector discipline. He revealed that while the previous government reported non-performing loans in banks at 1.22 lakh crore Taka, the actual figure is closer to 5 lakh crore Taka due to data discrepancies. To enhance competitiveness, he advocated for technological advancements, increased productivity, a single-window system, reduced port clearance times, and shorter lead times.
During his speech, Hasan Ahmed Chowdhury Kiron, Chairman of Debate for Democracy, stated that, Bangladesh's economy is currently undergoing a critical transition. At this juncture, the country faces a dilemma regarding whether to proceed with or delay its graduation from LDC (Least Developed Country) status. Proposing a reversal of LDC graduation could subject Bangladesh to ridicule in the international arena, potentially leading to its perception as an incapable state—akin to Afghanistan. For instance, when Zimbabwe's economy deteriorated, the United Nations offered the country continued LDC status, but Zimbabwe declined, stating, “We will not wear this garland of shame.”
In contrast, some Bangladeshi business leaders are advocating for a delay in LDC graduation. Various stakeholders are expressing opinions based on their own interests through seminars and public statements. However, spreading confusion around LDC graduation is not acceptable. Incomplete or misleading information could harm the country’s reputation and progress.
Business associations should not attempt to pressure the government into extending the graduation timeline. Instead, they should engage in constructive dialogue to explore how best to address the challenges ahead. Delaying graduation solely for the sake of incentives is not a rational approach. It must be remembered that incentives cannot be sustained indefinitely. Providing incentives to some sectors while excluding others creates inequality. Therefore, sectors that are vulnerable should be assessed through impact evaluations and offered targeted, time-bound support.
Kiron further noted, Bangladeshi businesses are not yet adequately prepared to face post-graduation challenges. The loss of tariff-free access following graduation has created anxiety among entrepreneurs. Sectors such as garments and manufacturing will lose duty-free privileges and face the risk of losing preferential trade benefits. This will expose them to intense competition from foreign counterparts.
The pharmaceutical industry will be subject to patent laws, which could significantly increase drug prices, causing hardship for ordinary citizens. Additionally, Bangladesh will have to borrow at commercial interest rates post-graduation, making debt repayment and compliance with loan conditions more difficult.
However, if the national elections scheduled for February proceed as announced by the Election Commission, a newly elected government will assume office. With a stable administration, both domestic and foreign investment are expected to rise, restoring economic stability. The new government will be able to enhance the country’s global standing through successful LDC graduation. Opportunities for new industrial ventures will expand, employment will increase, domestic revenue will grow, and law and order will improve.
In the shadow parliament organized by Debate for Democracy titled “Bangladesh Has the Capacity to Overcome the Challenges of LDC Graduation,” the debaters from Cumilla Victoria Government College emerged victorious, defeating the team from Prime University.
