Expert panel meets today for LDC transition strategy

As Bangladesh's graduation from the least developed country (LDC) club to a developing one draws near, a six-member high-powered committee of public officials, economists, and policy experts has been formed by the interim government to implement a smooth transition strategy.

In the process, the committee aims to ensure a seamless and sustainable shift for the economy, addressing potential challenges.

The committee will hold an introductory meeting at the Economic Relations Division (ERD) today.

Anisuzzaman Chowdhury, special assistant (state minister rank) at the Ministry of Finance, will preside over the session.

The committee includes Professor Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD); Abdur Rahim Khan, additional secretary to the Ministry of Commerce; and Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID).

The other two members are Monzur Hossain, research director at the Bangladesh Institute of Development Studies (BIDS), and Kazi Iqbal, senior research fellow.

The government has been working on formulating the transition strategy to mitigate risks associated with losing LDC-specific privileges, such as preferential trade benefits, concessional financing, and market access.

The committee was formed following a directive by Chief Adviser of the interim government Prof Muhammad Yunus on March 13 to his cabinet colleagues to prepare for the graduation in November 2026.

The country became listed in the LDC grouping in 1975 to avail different benefits, such as zero-tariff and quota access to different countries, as the economy was on the verge of collapse following the Liberation War.

Such benefits have enabled Bangladesh to currently stand out as the second-largest garment exporter after China.

Bangladesh may lose trade worth over $8 billion annually once the preferential trade benefits are withdrawn following the graduation. In turn, the country would have to pay a minimum duty of 12 percent on goods shipments.

Currently, 78 percent of the country's exports avail LDC benefits in 38 countries.

The European Union (EU) has already assured that it will continue to offer the LDC trade benefits to Bangladesh for three more years, up to 2029, as a grace period meant to enable a smooth transition.