Finance Secretary Khairuzzaman Mozumder has raised concerns about the challenges posed by Bangladesh's graduation from the list of least-developed countries (LDC).
Speaking at a National Board of Revenue (NBR) event, where 141 top taxpayers were honoured, at Dhaka’s Bangabandhu International Conference Center on Wednesday, he expressed concern about the effects of losing LDC status and said, "Bangladesh's graduation from LDC has become a matter of headache for us."
According to Khairuzzaman, the shift from LDC status means Bangladesh will no longer enjoy the advantages of duty-free exports under preferential tariffs. Although negotiations are underway to extend this benefit for a limited period, he acknowledged the potential of losing competitiveness.
He highlighted that after graduation, Bangladesh would be unable to provide export subsidies, leading to a fall in competitiveness, drop in exports, and the necessity to lower import tariffs.
To address these impending challenges, Khairuzzaman underscored the significance of enhancing revenue collection as a crucial measure.
The United Nations Committee on Development Policy in February 2021 determined that Bangladesh has met all three requirements to graduate from the LDC category for the second time. The first time was in 2018. As a result, the country is set to graduate from LDC status in November 2026.
According to the latest report of World Economics, published in June 2023, Bangladesh has the fastest growing economy in the Asia-Pacific region out of 32 countries.
