Pharma Industry Eyes Global Boost if LDC Transition Delayed

Bangladesh’s pharmaceutical industry could gain fresh global momentum if the country’s transition from Least Developed Country (LDC) status is postponed by three years.

The government has requested the UN Committee for Development Policy to defer the transition from November 24, 2026 to 2029. Industry leaders say the extension would help ensure a smoother adjustment to post-LDC rules.

The sector earned about $213 million in export revenue in the 2024–25 fiscal year. Growth has been driven by the ability of local firms to produce low-cost generic versions of patented medicines under special provisions of the WTO’s TRIPS agreement.

Stakeholders say the proposed extension would allow companies more time to prepare for the loss of these benefits. It would also help maintain the supply of affordable medicines in both domestic and export markets.

During this period, manufacturers could upgrade production systems and meet stricter global standards, including those of the US Food and Drug Administration, the European Medicines Agency and WHO Good Manufacturing Practices.

Experts note that aligning with global intellectual property rules and regulatory frameworks is key to expanding exports. The additional time could help firms improve quality, secure regulatory approvals and enter highly regulated markets.

Bangladesh currently meets about 98% of its domestic drug demand through local production. Its medicines are exported to more than 150 countries.

The Bangladesh Association of Pharmaceutical Industries (BAPI) has welcomed the move, saying a phased transition would protect both industry growth and public health.

BAPI and API Industrial Park Project CEO Major General (Retd) Md Mostafizur Rahman said the extension would support continued access to affordable medicines and help address gaps in biotechnology, API production and clinical research.

He added that the extra time would aid progress on key projects such as the API Industrial Park, reducing reliance on imported raw materials.

Experts have also stressed the need for stronger investment in research and development and closer collaboration between academia and industry. This shift is essential for moving from generic drug production to high-value, innovation-driven products.

Professor Mostafizur Rahman of the Centre for Policy Dialogue described the proposed delay as a practical step to strengthen stability innovation and global competitiveness.

Banking sector representative Mohammad Shahid Ullah said the transition reflects Bangladesh’s economic progress, but timing remains critical. He described the proposed delay as a strategic move to ensure sustainable growth.

A recent study on the sector warns that after LDC graduation, Bangladesh could face challenges including patent restrictions, higher production costs and tougher export conditions.

Without sufficient investment in quality, research and API production, access to new markets may become more difficult. Domestic drug prices could also rise due to increased costs.

Experts recommend policy support to ease production, registration and export processes. They also highlight the need to fully operationalize the API Industrial Park and expand capacity in research, bioequivalence testing and molecule development.

Strengthening contract research organizations, developing skilled manpower and improving intellectual property systems will also be critical.

Public-private investment in research institutions and greater foreign direct investment in the API sector could further boost export potential.

Industry leaders say that while LDC graduation marks a major economic milestone, a well-managed transition is essential to sustain growth in the pharmaceutical sector.