Businesses seek sector-specific plans for LDC graduation

Business leaders have called for sector-specific action plans to help industries prepare for Bangladesh’s graduation from the least developed country (LDC) category.

They said businesses urgently need to improve productivity, skills, technology, access to finance and trade capacity to remain competitive in global markets.

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They also stressed that the plans should be based on reliable data, properly implemented and regularly monitored. Greater private sector participation is also needed in government reform efforts.

The recommendations came at a discussion organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its Motijheel office yesterday on private sector participation in LDC-related reforms and strengthening business capacity.

FBCCI Administrator Md Fazlul Hoque chaired the meeting. FBCCI Secretary General Md Alamgir presented a report on the challenges and opportunities Bangladesh may face after graduating from the LDC category.

The report warned that Bangladesh could lose preferential market access in major export destinations, including duty-free benefits under the European Union’s Generalised Scheme of Preferences (GSP) and Everything But Arms (EBA) scheme.

The pharmaceutical and other sectors may also face stricter intellectual property requirements, it said. The report called for greater private sector involvement in designing and implementing reforms to ensure a smooth transition.

TRADE SKILLS, IP RIGHTS KEY CONCERNS

Rajib H Chowdhury, senior vice-president of the Dhaka Chamber of Commerce and Industry, said Bangladesh needs stronger capacity to negotiate trade agreements and deal with emerging market-access challenges.

“We do not have enough negotiation capacity. We need to improve it,” he said.

KSM Mostafizur Rahman, president of the Bangladesh Agrochemical Manufacturers Association, said intellectual property rights would be a major challenge for several industries after graduation.

The pharmaceutical, agriculture and agro-chemical sectors could be particularly vulnerable, he said.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, said much of the domestic plastic industry still relies on copying existing products.

This could make intellectual property rights a major challenge for the sector after graduation, just as they are expected to be for the pharmaceutical industry, he said.

Md Munir Chowdhury, national trade expert of the Bangladesh Regional Connectivity Project-1 under the Ministry of Commerce, said businesses should clearly identify the challenges facing their respective sectors.

Ismat Zerin Khan, president of the Patuakhali Women Chamber of Commerce and Industry, said the LDC graduation strategy should also cover businesses outside Dhaka.

Fazlul Hoque urged all district chambers and sector-based associations to submit their specific recommendations to the FBCCI in writing. The federation will review the proposals and present them to policymakers, he said.

He said Bangladesh must make effective use of the additional three years to prepare for graduation.

“If we can strengthen the capacity of the private sector, our competitiveness in international markets will also improve,” he said, seeking cooperation from district chambers and sector-based associations.

Bangladesh is scheduled to graduate from the UN’s LDC category on November 24, 2026. Although the country meets all three graduation criteria, the government has sought a three-year extension until November 2029 to address economic challenges and complete reforms.

The UN Committee for Development Policy (CDP) has backed a shorter extension, while the UN Economic and Social Council (ECOSOC) has forwarded Bangladesh’s request to the UN General Assembly, which will make the final decision before the graduation deadline.