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Citing the assessment report, he said the request for a three-year extension was consistent with practice in five previous cases where graduating countries were given additional time to prepare.

The report also highlighted the current high level of global uncertainty caused by external shocks. It said that Bangladesh needs time to adjust and set priorities under its Smooth Transition Strategy, which guides the graduation process.

At the same time, it warned that Bangladesh has already met the graduation criteria with a comfortable margin. Keeping the country longer in the LDC category could delay its ability to fully benefit from graduation. “Consequently, a shorter extension of the preparatory period would appear more conducive to a sustainable graduation,” the report said.

It added that this is particularly important for reducing dependence on trade preferences and supporting a shift towards a higher-productivity and higher-value development path under Bangladesh’s strategy.

Debapriya said the UN CDP’s decision should be seen as a positive signal for Bangladesh, noting that the recommendation could help support the recovery of an already strained economy.

The committee’s recommendation is based on the view that a series of external and domestic shocks over the past five years has limited Bangladesh’s preparedness for graduation.

It also confirmed that Bangladesh exceeds all three LDC graduation criteria by a wide margin and faces a very low risk of falling below these thresholds in the near to medium term, according to international forecasts.

However, the report acknowledged significant challenges, including uncertainty linked to the Middle East conflict and its impact on global energy and supply chains, lingering effects of recent shocks, ongoing global trade uncertainty, and long-standing domestic vulnerabilities.

The UN CDP therefore said extending the preparatory period by the General Assembly would be appropriate, adding that Bangladesh should use the time to make substantial progress on domestic reforms to address structural weaknesses.