Decisions regarding a three-year deferral of Bangladesh's graduation from the Least Developed Country (LDC) status are expected within October, Commerce, Industries, and Textiles & Jute Minister Khandoker Abdul Muktadir expressed hope today.

He made the statement as the chief guest at a seminar titled "Challenges and Action Plan for Bangladesh's LDC Graduation," organized by the Economic Reporters' Forum (ERF) at its conference room on Monday (October 19).

The Minister stated that the government has prepared a time-bound action plan to utilize the additional time for necessary preparations. The government also aims to conclude Free Trade Agreement (FTA) negotiations with the European Union (EU) prior to graduation.

Highlighting the progress of the deferral process, he noted that Bangladesh has already passed the United Nations Committee for Development Policy (CDP) stage. Following this, a three-year extension was recommended at the UN Economic and Social Council (ECOSOC). Key global partners, including the European Union, have also concurred on granting additional time to Bangladesh.

"I am very optimistic that we will see a resolution on this matter within the next week or two," said Khandoker Abdul Muktadir, adding that he expects a final decision ahead of the scheduled deadline of November 24.

Explaining the rationale for seeking a three-year extension, the Minister acknowledged that the country lacked adequate preparation to navigate post-graduation challenges. "Rather than addressing economic and financial hurdles, there was a tendency to politically glorify graduation. Insufficient attention was paid to building capacity to capitalize on graduation benefits and mitigate potential drawbacks," he said.

He further shared that the time-bound action plan outlining how the extension period will be utilized has already been shared with the European Union.

To retain market access for Bangladeshi goods and services globally, the Minister highlighted ongoing initiatives to enter trade agreements with various nations. He noted that the government aims to complete Comprehensive Economic Partnership Agreements (CEPA) or FTAs with eight to ten countries between 2026 and 2027.

A chief negotiator has already been appointed for FTA talks with the EU, and preparations are underway for the first round of technical negotiations, though exact dates are yet to be fixed. "My goal is to conclude these negotiations before Bangladesh graduates," he added.

Concurrently, preparations to qualify for the EU's GSP Plus scheme will continue. "However, I hope we won't need to opt for GSP Plus, as we plan to finalize the FTA prior to that," the Commerce Minister remarked.

Additionally, negotiations to join the Regional Comprehensive Economic Partnership (RCEP) are progressing. According to Khandoker Abdul Muktadir, in-principle approval for Bangladesh’s inclusion has been secured, and procedural requirements are currently moving forward.

Addressing investment growth, the Minister emphasized that alongside international market access, uninterrupted energy supply, streamlined business processes, and transparent legal dispute resolution mechanisms are imperative. "We must ensure both domestic purchasing power to consume locally produced goods and foreign market access for export growth," he noted.

Illustrating bureaucratic delays faced by businesses, he cited that it currently takes an average of 355 days from obtaining a trade license, opening a bank account, and securing initial clearances to collecting an Import Registration Certificate (IRC) and opening Letters of Credit (LCs) for machinery. "It is difficult for entrepreneurs to sustain momentum when faced with such lengthy procedures," he said.

To reform this, the government plans to issue trade licenses through a unified online portal. Applicants will be able to submit required documentation, pay fees, and obtain licenses from anywhere globally or locally, with fees automatically routed to respective local government institutions.

The government is also taking steps to fully digitize services provided by the Registrar of Joint Stock Companies and Firms (RJSC) and extend the validity of various business licenses from one year to three to five years. Furthermore, integrated inspections will replace separate visits by multiple regulatory agencies.

The Minister expressed confidence that these structural reforms will eliminate prolonged waiting periods for licenses and permits by 2027.

Identifying energy supply as a primary barrier to new investments, he stated that work is underway to establish new Floating Storage and Regasification Units (FSRUs/LNG terminals) and drill new gas wells. The government is also taking steps to expand solar power generation.

He noted that due to insufficient strategic reserves for LNG and essential commodities, Bangladesh faces economic pressure whenever global supply chains encounter disruptions. Consequently, initiatives are being taken to build strategic stock and storage infrastructure.

The seminar was chaired by ERF President Daulat Akter Mala. Dr. Mostafa Abid Khan, CEO of the Bangladesh Foreign Trade Institute (BFTI), presented the keynote paper, while ERF Executive Committee Member SSM Moinul Huq moderated the session.