Business leaders of the country鈥檚 readymade garments and textiles sector, along with representatives from various chambers, urged the visiting United Nations team to delay Bangladesh鈥檚 graduation from least developed country status.
They also said that although the government has adopted a smooth transition strategy, businesses feared that the lack of proper coordination would delay graduation by at least 5 years, so they could prepare by consulting the elected government.聽
The business leaders from the country met on Monday with the visiting team from the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, led by its acting director Roland Mollerus.
The team would carry out a聽comprehensive and impartial analysis聽of Bangladesh鈥檚 graduation preparedness. Bangladesh is scheduled to graduate from the LDC status on November 24 of the next year.
Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, alongside leaders of the country鈥檚 RMG and textile, sectors participated in the meeting at the UN House in Dhaka.
He told 抖阴精品 that they were at the meeting to convince the visiting team of the country鈥檚 lack of preparation.
鈥楾he government has taken some STS, but practically, those were not enough for a smooth transition,鈥� he added.
Ehsan, also president of the Bangladesh Employers Forum, said they urged the team to delay the LDC graduation by at least 5 years so they could prepare.
鈥極ur export is dependent on a single product with no major free trade agreement or economic partnership agreement. Such a time, a graduation from the LDC would make vulnerable the country鈥檚 economy,鈥� he added.
He also said that after an elected government comes into power next year, they could make a roadmap to discuss with the government, as there were some gaps in both the previous and current governments.聽
鈥榃e have come to know from many sources that about 17鈥�22 per cent orders could be reduced after LDC graduation, which would create a vulnerable situation in the industry and bring tougher social challenges,鈥� he added.
The visiting team agreed with their points, Ehsan added, saying that the businesses would create a realistic STS through discussing with the government, think tanks, and all major stakeholders if the LDC graduation was delayed by five years.
The visiting team asked them to create written views and recommendations and submit within next seven days.聽
The UN team is expected to submit its assessment report by December 3 after discussions with businesses, the government, and political parties.
The UN-OHRLLS held two meetings with representatives from various business sectors and chambers on Monday, according to meeting insiders.
At the first meeting, they met with the BEF, the Metropolitan Chamber of Commerce and Industry, the International Chamber of Commerce, the American Chamber of Commerce, and the Federation of Bangladesh Chambers of Commerce and Industry.
Bangladesh Garment Manufacturers and Exporters Association, BKMEA, and Bangladesh Textiles Mills Association met the UN-OHRLLS team at the second meeting.
During their meeting, BGMEA president Mahmud Hasan Khan Babu said that Bangladesh鈥檚 export-oriented sectors need sustained policy and technical support at both domestic and international levels to ensure a smooth and stable transition.
He also said that they need strategic reforms and supportive policies to maintain macroeconomic stability and address post-graduation challenges.
鈥楢pparel industry, at this critical juncture of LDC graduation, is facing rising operating costs, infrastructure constraints, and financial stress,鈥� he added, saying that between 2016 and 2023, gas prices increased by 286 per cent.
Moreover, the non-performing loan ratio exceeded 27 per cent, and bank interest rates rose to 15 per cent, discouraging private investment.
Moreover, despite operational delays and inefficiency at ports, the average 41 per cent increase in Chattogram port tariffs in October 2025 and lengthy road transport times would undermine export competitiveness.
鈥楢 56 per cent rise in wages in 2023, an increase in annual increments from 5 per cent to 9 per cent in 2024, and a 60 per cent reduction in cash incentives without alternatives have pushed the sector toward economic vulnerability,鈥� he added.
He also identified several macroeconomic weaknesses, including slower GDP growth, persistently high inflation (above 8 per cent), a low tax-to-GDP ratio (6.6 per cent), and a foreign exchange reserve of $27.5 billion (as per BPM6).
The BGMEA president also expressed concern about political transitions, global trade volatility, declining orders amid election uncertainty, and poor coordination in implementing the STS.
In this regard, they presented a set of short- and medium-term policy priorities to the government and development partners, including WTO-compliant alternative incentives, reduced bank interest rates, and the restoration of the Export Development Fund.
He also asked to ensure an uninterrupted energy supply, addressing port and customs inefficiencies, securing EU GSP+ status, and fast-tracking FTA and EPA negotiations with key trade partners.
They also urged strengthening governance in the banking sector, reducing NPLs, accelerating port and economic zone development, and investing in skills development and technological modernisation.
Mahmud Hasan Khan called upon international development partners to ensure a smooth transition period of at least 3 years for export to all developed and developing country markets after Bangladesh鈥檚 official graduation.
