Kamal sees gains from LDC graduation

Bangladesh will benefit more than it would lose once the country graduates to a developing nation from the grouping of the least-developed countries, said Finance Minister AHM Mustafa Kamal yesterday.

"I think we will gain much more than we will lose," he said during a virtual briefing after the meeting of the cabinet committee on economic affairs.

Many people said exports would fall by four to five billion US dollars, but that was not the case, he said.

"If we lose an export of $100 million, $75 million of that will be [foreign] input. As a result, we will lose $25 million."

Thanks to graduation, old problems would not exist, and there would be many opportunities, the minister said, adding that all sides, including the economy will benefit.

Kamal said currently, foreigners were apprehensive of investing in Bangladesh, but that would be resolved once Bangladesh moves out of the LDC category.

The graduation would increase foreign investment in Bangladesh, he said, adding that the economy will gradually become stronger. On February 26, the United Nations Committee for Development Policy recommended Bangladesh's graduation after the second triennial review of the LDC category.

Bangladesh has met, for the second time, all the three eligibility criteria involving income per capita, human assets, and economic and environmental vulnerability.

According to the rules, after a two-year transition period, Bangladesh was supposed to leave the group in 2024 officially, but the country has been given an additional two years in areas of duty-free exports and easy access to foreign loans because of the devastating impacts of the coronavirus pandemic on its economy.

If privileges are taken away just after graduation, a country will not be able to continue its progress. "That is why an additional two years were sought to prepare for the exit," Kamal said.