DHAKA, Aug 14, 2025 (BSS) - Leaders of top businesses today laid emphasis on taking initiatives to extend the transition period for Bangladesh's graduation from the Least Developed Country (LDC) category.

They observed that Bangladesh is not yet ready to graduate from its LDC status.

They demanded a three-to-six-year extension in the transition period so that they can take preparations to compete in the international market after the country’s graduation from LDC.

Businesses made the demand while speaking at a seminar on "LDC Graduation: Some Options for Bangladesh," at a hotel in the city.

 The ICC-B in association with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Association of Pharmaceutical Industries (BAPI) organised the seminar.

While delivering the opening remarks, ICC-B President Mahbubur Rahman said that satisfying all the three UN criteria during two consecutive reviews for LDC graduation, namely GNI, Human Assets Index and Economic Vulnerability Index, Bangladesh is now set to graduate in November 2026. 

 “While this achievement reflects five decades of economic growth, poverty reduction, and industrial progress, it also signals the complex challenges that lie ahead,” he added.

 He also urged the government to negotiate better trade deals, including Free Trade Agreements (FTAs) with the European Union (EU), the United Kingdom (UK), and major Asian economies, to maintain market access and avoid tariff shocks.

 As part of preparations, he recommended diversifying beyond garments by developing pharmaceuticals, IT services, agro-processing, leather, and light engineering to reduce over-dependence on a single sector.

He called for building human capital for the fourth industrial revolution, training a workforce skilled in automation, Artificial Intelligence, advanced manufacturing and strengthening institutions through transparent governance. 

 “Without these measures, graduation risks slowing down our economic momentum instead of accelerating it," he added.

Sanya Reid Smith, legal advisor and senior researcher of the Third World Network (TWN), presented the keynote paper, noting that LDC graduation will result in the loss of duty-free access to key markets, with tariffs potentially rising to 12 per cent, reducing exports by 6-14 per cent unless GSP+ or similar arrangements are secured.

Participants said the impact would be felt across sectors, particularly pharmaceuticals, which currently meets 98 per cent of domestic demand and exports to over 150 destinations. This is because of the loss of the waiver from compliance with the WTO agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) after the graduation from the LDC category. 

Drug makers will have to comply with patent laws which will increase costs and require heavy investment in R&D and advanced technology, they mentioned.

 Abdul Muktadir, President of BAPI; Mahmud Hasan Khan, President of BGM?A; Syed Nasim Manzur, President of the  Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB); Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI); Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks (BAB); Dr. Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD); Dr. M. Masrur Reaz, Chairman of the Policy Exchange Bangladesh; Dr. Selim Raihan, Professor of the University of Dhaka and Executive Director of the South Asian Network on Economic Modeling (SANEM) and Dr. Zaidi Sattar, Chairman and Chief Executive of the  Policy Research Institute of Bangladesh (PRI) also spoke on the occasion.

 A. K. Azad, Vice President of the ICC Bangladesh and Managing Director of Ha-Meem Group and Naser Ezaz Bijoy, Vice President of ICC Bangladesh and Chief Executive Officer of Standard Chartered Bank delivered closing remarks.

 In his speech, AK Azad said it is not appropriate time for Bangladesh to graduate from LDC status.

“We do not want a decision that will put pressure on our economy or damage exports,” he added.

 "Our economy has not yet recovered from its fragile situation. Defaulted loans now stand at Tk 5.30 lakh crore and will increase further. Around 1,200 factories have applied for loan rescheduling. Our tariffs will rise in key markets such as Europe, Canada, and Japan," he said.

 Syed Nasim Manzur urged the government to take initiatives to postpone LDC graduation by three to six years.