Photo: Collected
The United Nations General Assembly (UNGA) has given Bangladesh three more years to prepare for graduating from the list of least developed countries (LDCs). Nepal has been given the same extension.
Bangladesh and Nepal had sought extra time to complete necessary reforms and preparations in key sectors before graduation.
The decision came after lengthy discussions at the 81st session of the UN General Assembly in New York today. Within two days of taking office on 19 February this year, the Bangladesh Nationalist Party (BNP)-led government wrote to the UN Committee for Development Policy (UNCDP) requesting an extension of the graduation timeline.
In its decision, the UN acknowledged the serious challenges facing Bangladesh. According to the UN, the recent conflict and the resulting disruption to international energy and supply systems have heightened risks of uncertain magnitude.
In view of uncertainty in global trade, the lingering effects of recent shocks and long-standing domestic weaknesses, Bangladesh has been given a three-year preparatory period until 24 November 2029.
The UN further said that according to the UNCDP’s assessment, domestic political change is not considered grounds for extending the preparatory period under the existing graduation framework; however, the complexity and particular features of Bangladesh’s recent political transition merit consideration.
The decision notes that various domestic factors amplify the impact of external shocks and also affect the government’s capacity to deal with them.
The UN resolution stresses advancing and sustaining domestic reforms during the extended preparatory period. It also calls for implementing the national smooth transition strategy with support from various UN agencies and in coordination with bilateral, regional and multilateral development partners and trading partners. Bangladesh has been asked to regularly report progress in implementing the strategy to the UNCDP through annual reports.
After Bangladesh’s letter was received, a panel was formed last February at the 28th plenary session of the UNCDP at UN headquarters in New York to assess the request. The UN Economic and Social Council (ECOSOC) later sent a recommendation to the General Assembly for further discussion of the matter.
Commerce Minister Khandaker Abdul Muktadir said recently that Bangladesh’s extension request had been discussed extensively at the 81st session of the General Assembly.
The G-77 countries backed the request, and the European Union (EU) also came out in favour of Bangladesh’s request.
With the three-year extension, Bangladesh’s exports are spared, for now, the prospect of facing an average tariff of 12.50 per cent. The country’s businesspeople had been calling for an extension to complete graduation preparations properly and make the process smooth. Under the new decision, Bangladeshi goods will enjoy duty-free access to major export markets until November 2029.
As an LDC, Bangladeshi exporters currently enjoy duty-free market access in 38 countries and trade blocs. Seventy-three per cent of the country’s total exports fall under LDC-based special trade preferences.
Bangladesh was due to leave the LDC category this year after meeting all three criteria: per capita income, the Human Assets Index (HAI) and the Economic Vulnerability Index (EVI). Bangladesh met all three criteria in two UNCDP triennial reviews after 2018. Earlier, Bangladesh had been given two extra years to prepare for graduation because of the Covid-19 pandemic.
Data from the UN Department of Economic and Social Affairs show that in the 2024 triennial review, the graduation threshold for per capita gross national income (GNI) for LDCs was $1,307; Bangladesh’s per capita GNI at the time was $2,684.
In the same review, the minimum HAI score was set at 59.6; Bangladesh scored 77.5.
The EVI threshold was 40.6, and Bangladesh’s score was 21.9.
Despite meeting all the criteria, managing the post-graduation situation and sustaining the development gains achieved remain the big challenges for Bangladesh. As the world’s largest LDC and the biggest beneficiary of international support, Bangladesh’s graduation is relatively complex. The report notes that the process is moving ahead amid political uncertainty and a protracted economic crisis, which have put decades of development progress under strain.
At the UNCDP’s second triennial review, held from 22 to 26 February 2021, Bangladesh was given the final recommendation to graduate from the LDC list. Before that, in March 2018, the country met all three criteria for the first time.
Under UN rules, a country must meet at least two criteria to be eligible for graduation; so far Bangladesh is the only country to have met all three. However, even after becoming eligible, a country must maintain that position in two consecutive triennial reviews.
In 2019, Bangladesh’s per capita GNI was $1,827, above the UN threshold of $1,222. Its HAI score was 75.3 against a threshold of 66, and its EVI score was 27.3, below the set threshold of 32.
Background
According to a Daily Observer report of 4 September, Bangladesh’s graduation date of 24 November 2026 had been set by General Assembly resolution 76/8, adopted in November 2021; on 21 July 2026, ECOSOC recommended that the General Assembly take a decision on Bangladesh’s request before the scheduled date.
A report in the English edition of Prothom Alo said the extension request was submitted to the UNCDP on 18 February; sources differ on the date of the request.
At a glance
According to a report in The Financial Express, Nepal had initially applied to defer its graduation by two and a half years; the UNCDP had recommended Laos, along with Bangladesh and Nepal, for graduation in 2026.
Sources
Original report: BSS
Background sources: Daily Observer, 4 September 2026; Prothom Alo English, June 2026; The Financial Express, 2026
