UN panel backs Dhaka's request for 3 more years before LDC graduation

CDP chair Jose Antonio Ocampo informed the Bangladesh government that based on the Committee’s assessment, it would be appropriate for the UN General Assembly to approve an extension of Bangladesh’s preparatory period for LDC graduation, a release from the government’s Economic Relations Division said.

However, he emphasised that Bangladesh would need to make significant progress in implementing key domestic reforms to address its existing structural vulnerabilities during this extended period.

On February 18 this year, Bangladesh formally requested the CDP to extend the preparatory period by three years. The country’s prime minister also wrote to the UN secretary general in April, seeking his personal support on the matter.

In its assessment, the CDP noted that Bangladesh has exceeded the graduation thresholds by a significant margin under all three LDC graduation criteria and faces a very low risk of falling below these thresholds in the near to medium term.

The Committee observed that the recent crisis in the Middle East, uncertainties in global energy and supply chains, changes in the international trading environment and global challenges could affect the country’s graduation preparedness and transition process.

The Committee feels that an extension of the preparatory period would provide Bangladesh with additional time to better assess the implications of the current global situation, identify priority actions, and prepare adequately for the post-graduation landscape, including the loss of certain market preferences and international support measures.

The Committee further highlighted the importance of domestic reforms, particularly in ensuring financial sector stability, increasing tax revenue, strengthening domestic resource mobilisation, enhancing productive capacities, promoting economic diversification and preparing the private sector for graduation.

The Committee noted that the extension of the preparatory period should not be viewed as an opportunity to delay reforms; rather, it should serve as a catalyst for accelerating them.

Fibre2Fashion News Desk (DS)