Govt initiates process for LDC graduation deferral

The government has begun the process to seek a deferral of the country’s scheduled graduation from the least developed country (LDC) club at the end of this year, newly appointed Commerce Minister Khandaker Abdul Muktadir said yesterday.

“The process has been initiated by the Ministry of Commerce, and in coordination with the Economic Relations Division (ERD), necessary communications and procedures will be expedited,” a commerce ministry statement said.

Business leaders had been urging the authorities to delay the graduation, prompting the new government to act swiftly.

“Although there was no obligation to send a letter in this regard within the first week, the government has started working on the issue from today [Wednesday],” the minister told journalists after assuming office at the Secretariat in Dhaka.

He said about 85 percent of the country’s export earnings still come from apparel. This overreliance has slowed export growth.

Stressing the need to broaden the export base, Muktadir said the government would support private sector investment to help open up new markets.

Asked about market conditions during Ramadan, Muktadir sought to reassure consumers. If supplies remain steady, he said, prices should stay stable.

“The government has sufficient stock of essential commodities for the month of Ramadan and the period afterwards, and there is more in the pipeline. Therefore, there is no reason to panic,” he added.

The minister acknowledged that prices of some goods tend to rise at the beginning of the month of fasting for Muslims, often because of a sudden spike in demand. However, he said such pressures usually do not last very long.

Responding to a question on whether the proximity of Ramadan to the new administration taking office posed a challenge, he said the month would be a major test. The government must meet public expectations and deliver.

On investment, the minister said uncertainty deters both foreign and domestic investors. A stable environment is essential. Investors commit capital only when they are confident of reasonable returns on their investment and labour.

Muktadir also pointed to demographic pressures. Around 20 to 22 lakh people enter the labour market each year. Weak investment over the past two to three years has added strain to the economy. Unless reversed quickly, he said, it could threaten jobs and growth.

State Minister for Commerce Md Shariful Alam and Commerce Secretary Mahbubur Rahman were also present.