Shibbir Ahmed, New York – The United Nations General Assembly (UNGA) has granted Bangladesh a three-year deferment of its graduation from the Least Developed Country (LDC) category, extending the country’s preparatory period until November 24, 2029. Nepal has also received a similar extension. The decision followed extensive discussions during the 81st session of the UN General Assembly in New York, after both countries requested additional time to prepare for the economic and trade-related challenges associated with graduation.
The Bangladesh Nationalist Party-led government submitted its request to the UN Committee for Development Policy (UNCDP) two days after assuming office on February 19, 2026, seeking more time to implement essential reforms and strengthen key economic sectors. In its resolution, the United Nations acknowledged the serious challenges confronting Bangladesh, particularly the heightened uncertainties arising from recent conflicts and disruptions to international energy supplies and global supply chains.
The UN cited uncertainties in global trade, the lingering effects of recent economic shocks and longstanding domestic vulnerabilities as reasons for granting the additional preparatory period.
The resolution also acknowledged that Bangladesh’s recent political transition had created a complex set of circumstances requiring consideration, although domestic political transitions are not normally recognised under the existing LDC graduation framework as grounds for extending preparatory periods.
The UN further observed that domestic challenges can intensify the effects of external shocks and limit a government’s ability to respond effectively. As part of the extended period, Bangladesh has been encouraged to accelerate domestic reforms and implement a national Smooth Transition Strategy. The UN system, together with bilateral, regional and multilateral development and trading partners, was called upon to support the process.
Bangladesh will also be required to provide regular updates on the implementation of its transition strategy in its annual reports to the UNCDP. Following Bangladesh’s request, the UNCDP established a panel to examine the matter during its 28th plenary session in February at UN Headquarters in New York. The UN Economic and Social Council (ECOSOC) subsequently recommended further consideration of the issue by the General Assembly.
Commerce Minister Khandakar Abdul Muktadir recently said Bangladesh’s request received broad support during the 81st UNGA session, including backing from G-77 countries and the European Union.
The three-year deferment is expected to provide significant breathing room for Bangladesh’s export-oriented industries. Bangladesh had been preparing to graduate from the LDC category, a move that could have resulted in higher tariffs and the gradual loss of preferential market access in several major export destinations.
According to the information presented in the report, Bangladeshi exporters currently enjoy duty-free market access in 38 countries and trade blocs under LDC-specific arrangements. Approximately 73 percent of the country’s total exports benefit from these preferences. The deferment is expected to help businesses prepare for increased international competition, adjust to changing trade conditions and strengthen their competitiveness before the transition.
Bangladesh was originally scheduled to graduate from the LDC category in 2026 after meeting all three UN graduation criteria: gross national income (GNI) per capita, the Human Assets Index (HAI) and the Economic Vulnerability Index (EVI).
According to the UN Department of Economic and Social Affairs, Bangladesh’s GNI per capita stood at $2,684 in the 2024 triennial review. The country scored 77.5 on the HAI and 21.9 on the EVI, meeting the required thresholds in all three areas. Bangladesh first met the graduation criteria in March 2018 and received the final recommendation for graduation following the UNCDP’s second triennial review on February 22–26, 2021. The country had previously received a two-year extension because of the COVID-19 pandemic.
Under UN rules, an LDC must meet at least two of the three graduation criteria and maintain the required performance through two consecutive triennial reviews conducted by the UNCDP. Bangladesh’s latest deferment highlights the challenges of managing the transition while protecting the economic and social progress achieved over several decades.
As the world’s largest LDC economy and a major beneficiary of international development and trade preferences, Bangladesh faces the complex task of strengthening its domestic economy while preparing for a new phase of global trade competition.
The extended preparatory period is expected to give the government, exporters and development partners additional time to address structural weaknesses and ensure a smoother transition out of the LDC category.
