Bangladesh is poised to graduate from the United Nations’ list of Least Developed Countries (LDCs) in 2026, marking a significant milestone in its development journey. However, experts warn that this graduation comes with its own set of challenges that need careful navigation to maintain sustainable economic growth and avoid potential setbacks.

As the country moves toward middle-income status, one of the primary concerns is the potential loss of preferential trade access to global markets, particularly in sectors like textiles and garments, which are critical to Bangladesh’s economy. Currently, Bangladesh benefits from duty-free and quota-free access to many developed markets under LDC status. The end of this status could lead to the imposition of tariffs on Bangladeshi exports, particularly textiles, which would increase costs and potentially erode its competitive edge.

Another challenge is the need for continued infrastructure development, especially in transport, energy, and technology, to ensure the country can handle increased demand and trade opportunities. The textile sector, which employs millions and remains the backbone of Bangladesh’s economy, will require substantial investment in innovation, skill development, and sustainability initiatives to compete globally.

The country’s social welfare systems and the protection of vulnerable populations will also need bolstering, as LDC graduation may impact existing aid programs and development assistance. The government will need to focus on creating a more resilient economy that can continue to provide for its people while managing the transition.

While the road ahead is filled with challenges, Bangladesh’s graduation from LDC status also presents an opportunity for the country to diversify its economy, improve its global standing, and attract more foreign investment. With strategic reforms, stronger trade relations, and a focus on sustainable development, Bangladesh could chart a path to continued success in the post-LDC era.