LDC Extension to Strengthen Tech Transition

The United Nations Committee for Development Policy (CDP) has issued a positive recommendation to extend Bangladesh’s preparatory period for graduation from the Least Developed Country (LDC) category until November 24, 2029, with a focus on enhancing the capacity and ensuring the sustainable transformation of the country’s technology, ICT, telecommunications, and engineering sectors.

The information was disclosed in a letter from the United Nations received in Dhaka on Tuesday, June 2.

According to the letter, CDP Chair Professor José Antonio Ocampo informed the Government of Bangladesh that the extended period should be utilized to prioritize internal structural reforms, particularly in improving technological infrastructure and increasing productivity.

Earlier, on February 18 this year, the Government of Bangladesh formally requested an additional three-year extension of the LDC graduation timeline. Subsequently, on April 6, Prime Minister Tarique Rahman submitted a similar request to the UN Secretary-General. The appeal was primarily aimed at allowing the country’s IT and engineering sectors more time to prepare for the challenges of the Fourth Industrial Revolution and to retain international duty-free benefits for the technology sector for a longer period.

In its assessment, the UN committee noted that Bangladesh had successfully met the required thresholds under all three criteria for LDC graduation. However, it emphasized that granting additional time would help shield the country’s technology and industrial sectors from potential disruptions arising from the ongoing Middle East crisis, global energy and supply chain uncertainties, and shifts in international trade conditions.

The committee observed that Bangladesh would benefit from continued international cooperation and the retention of International Support Measures (ISMs), particularly for the information technology, software export, and engineering sectors during the extended transition period.

The committee further clarified that the purpose of the extension is not to delay reforms, but rather to accelerate the expansion of domestic production capacity in the IT, manufacturing, and engineering sectors and to advance economic diversification.

The Government of Bangladesh has welcomed the UN’s positive assessment and expressed optimism that, with continued international technical and financial support, the country will be able to achieve a sustainable and successful LDC graduation by 2029.

DBTech/PM/MUIM/OR