Dhaka seeks UN-led global debt relief

Bangladesh has called for a UN-led international debt relief mechanism to help developing countries cope with mounting fiscal pressures caused by global crises.

It also sought stronger international backing for a three-year extension of its preparatory period before graduation from the Least Developed Country (LDC) category.

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The issues were raised during separate high-level meetings at the UN Headquarters in New York on Friday as Bangladeshi ministers intensified diplomatic efforts ahead of the country’s graduation from the LDC category.

Prime Minister’s Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir urged the UN to establish an international mechanism for debt restructuring, debt relief, debt suspension and sustainable debt solutions to protect investments in children, women, education, health and social protection.

During a meeting with UNICEF Deputy Executive Director for Humanitarian Action and Supply Operations Ted Chaiban at UNICEF House, he said rising energy prices, supply chain disruptions and growing debt burdens resulting from the Middle East crisis and other global shocks had significantly narrowed Bangladesh’s fiscal space.

He added that such an international mechanism was essential to enable developing countries to continue investing in vulnerable populations while keeping progress towards achieving the Sustainable Development Goals on track.

Despite the challenges, Titumir said the government remained committed to advancing its vision of a democratic welfare state.

He highlighted plans for a universal life-cycle-based social security system centred on women, saying the proposed Family Card initiative would support women-led households and provide assistance throughout different stages of life, including pregnancy, childhood, education, disability and old age.

State Minister for Planning Zonayed Saki, who also attended the meeting, outlined the government’s proposed “One Child, One Card, One Number and One Wallet” strategy to improve birth registration, school enrolment and access to public services.

He also sought UNICEF’s support for strengthening teachers’ capacity through digital training while highlighting initiatives promoting multilingual learning, sports, culture, museum visits and extracurricular activities.

Ted Chaiban congratulated Bangladesh’s newly elected government and welcomed the country’s election to the presidency of the 81st session of the UN General Assembly.

He praised Bangladesh’s efforts to protect vulnerable populations despite fiscal constraints and reaffirmed UNICEF’s commitment to expanding cooperation in education, nutrition, early childhood development, social protection, teacher training and child-focused data systems.

Separately, Commerce Minister Khandakar Abdul Muktadir held bilateral meetings with ECOSOC President and Nepal’s Permanent Representative to the UN Ambassador Lok Bahadur Thapa, and ECOSOC Vice-President and Algeria’s Permanent Representative to the UN Ambassador Amar Bendjama.

Muktadir sought international support for Bangladesh’s request to extend the LDC graduation preparatory period until November 2029 to ensure a smooth, sustainable and irreversible transition.

According to him, Bangladesh’s ongoing economic and political transition, coupled with global economic uncertainties, energy crises, climate change and other external shocks, has limited the country’s ability to fully utilise the existing preparatory period.

He said the additional time would allow Bangladesh to consolidate structural reforms, strengthen governance, restore macroeconomic stability, reinforce the financial sector, improve the investment climate, expand infrastructure and implement a robust Smooth Transition Strategy.

The ECOSOC president and vice-president acknowledged the challenges and expressed their commitment to working closely with Bangladesh to ensure a smooth transition.

Economic Relations Division Secretary Shahriar Kader Siddiky, Bangladesh’s Permanent Representative to the UN Ambassador Salahuddin Noman Chowdhury, Bangladesh Leathergoods and Footwear Manufacturers and Exporters Association President Syed Nasim Manzur, and BGMEA President Mahmud Hasan Khan were also part of the delegation.