The United Nations General Assembly has formally adopted a resolution deferring Bangladesh’s graduation from the Least Developed Countries (LDC) category by three years with setting the new transition deadline for November 24, 2029.
The resolution, introduced by Uruguay on behalf of the Group of 77 and China was adopted by voice vote at a plenary meeting in New York. Nepal was granted a similar three-year extension. The session was chaired by the President of the 81st UN General Assembly, Bangladesh Foreign Minister Khalilur Rahman.
The decision follows a formal request submitted by the BNP-led government shortly after taking office in February, followed by a direct appeal from Prime Minister Tarique Rahman to the UN Secretary-General in April. The government and domestic business communities sought extra time to address macroeconomic challenges, political transitions and global supply chain disruptions while preparing for the loss of duty-free and quota-free market access.
Delegates from France, Canada and Ireland (speaking on behalf of the European Union) supported the deferral while emphasizing the necessity for structural economic reforms.
While on the LDC list since 1975, Bangladesh initially met graduation criteria in 2018 and 2021. The transition date was previously delayed to 2026 due to the COVID-19 pandemic. With this latest extension, Bangladesh retains crucial international trade preferences and tariff exemptions through November 2029.
Experts Stress Need for Structural Reforms
Economists welcomed the extension but cautioned against complacency. Dr. Fahmida Khatun, Honorary Fellow at the Centre for Policy Dialogue (CPD) noted that while the extra time provides critical breathing room to retain international support, extra time alone will not fix economic vulnerabilities without genuine policy reform.
The UN resolution urges Bangladesh to address structural weaknesses, advance internal economic reforms, implement its Smooth Transition Strategy and coordinate closely with international development partners.
Key priorities for the 2026–2029 period:
Macroeconomic Stability: Controlling inflation, boosting revenue collection, restoring discipline in the banking sector and curbing non-performing loans.
Export Diversification: Reducing dependency on ready-made garments by enhancing competitiveness in pharmaceuticals, leather, light engineering, agro-processing and IT services.
Trade Preparedness: Securing bilateral trade agreements and building domestic supply chain capacities to navigate potential post-graduation tariff changes.
