International Chamber of Commerce, Bangladesh has observed that Bangladesh is poised to enter a new economic era, with its official graduation from the Least Developed Country category expected in November 2026.
While this milestone is being celebrated as a source of national pride, reflecting five decades of resilience, industrial dynamism, and social progress, the chamber mentioned that the transition marks the 鈥渂eginning of a more demanding chapter鈥� for the nation.
According to the editorial published in the current International Chamber of Commerce-Bangladesh (ICCB) News Bulletin (July-September 2025), the country has successfully met all three essential United Nations criteria for graduation: Gross National Income (GNI) per capita, the Human Assets Index, and the Economic Vulnerability Index.
However, maintaining economic momentum and competitiveness in the post-LDC environment will require significant internal restructuring.
Since the July 2024 uprising, Bangladesh has been navigating a period of high external debt, rising inflation, and economic uncertainty.
The deterioration of law and order disrupted supply chains, manufacturing and exports, eroding business confidence both at home and abroad. Enterprises across the textile, logistics, and services sectors suffered production losses, liquidity constraints, and delayed shipments, leading to declining export receipts and reduced investment inflows. The instability has weighed heavily on business confidence. The debt crisis, inherited from the previous government, has become more expensive to manage.
Upon graduation, Bangladesh will gradually lose the duty-free and quota-free market access it currently enjoys in major destinations such as the European Union, Canada, and Australia.
For the ready-made garment industry鈥攚hich accounts for over 80 percent of export earnings鈥攖ariffs of 10鈥�12 percent could sharply reduce competitiveness.
Unless productivity improves and the country diversifies into new markets and higher-value apparel categories, its edge may weaken.
Global trade trends compound this challenge. Rising protectionism, complex supply-chain standards and non-tariff barriers such as carbon border taxes and due-diligence laws threaten traditional export models. As the global apparel market increasingly prioritises sustainability, traceability, and labour compliance, Bangladesh must reposition itself as a responsible and innovative manufacturing hub.
Graduation will end concessional loans and grants, forcing Bangladesh to rely on costly commercial borrowing. With over $100 billion in external debt, rising global interest rates could strain repayment capacity. Stronger debt management, higher reserves, and export diversification are crucial to maintain fiscal discipline and ensure long-term macroeconomic stability.
Sustained progress demands bold structural and institutional reforms, simplifying taxation and customs procedures, improving contract enforcement and expanding digital governance will be essential to attract quality investment.
Regulatory transparency and efficient service delivery must enhance the ease of doing business.
At the same time, weaknesses in education, healthcare, and social protection must be addressed to ensure inclusive growth. A post-LDC Bangladesh cannot afford to leave its human capital behind. Skill development, vocational training, and greater female participation in the workforce will determine how equitably prosperity is shared.
Graduation also presents an opportunity to diversify beyond garments into IT, pharmaceuticals, leather agro-processing, service sector and shipbuilding鈥攕ectors critical for long-term competitiveness.
To sustain export growth, pharmaceutical firms must invest in R&D, upgrade manufacturing to WHO-GMP standards, and pursue partnerships with global companies. Government support through incentives, export facilitation, and innovation funding will be vital in this transition from volume-driven to value-driven exports.
Bangladesh鈥檚 upcoming graduation is indeed a milestone to celebrate鈥攂ut also a call to act. The privileges of the past will fade and the discipline of the future will demand more reform, more innovation, and greater resilience.
Recognizing these realities, ICC Bangladesh鈥攁long with 15 major trade bodies鈥攁t a press briefing held on 24 August, jointly proposed a 3鈥�5-year deferment of Bangladesh鈥檚 LDC graduation. They urged policymakers to allow industries adequate time to rebuild capacity, regain competitiveness, and implement essential structural reforms. The proposed extension, they argued, would help stabilize the economy and restore investor confidence amid global uncertainty and domestic recovery challenges.
With coordinated policy reforms, stronger institutions and dynamic private-sector leadership, Bangladesh can transform this transition into a powerful springboard for inclusive, resilient, and sustainable growth鈥攔eaffirming that its journey from vulnerability to vibrancy is not just remarkable, but truly unstoppable.
