BANGLADESH is preparing an action plan to help the businesses become more competitive in exports and face the new challenges, after its graduation to a developing economy.
The plan, being prepared by the Economic Relations Division, will include the strategies in the Eighth Five Year Plan.
According to the United Nations Capital Development Fund (UNCDP) recommendation, Bangladesh will officially become a developing country in 2026.
In the wake of the Covid-19 pandemic, the government had requested the UNCDP to grant five years’ preparation period for the transition instead of three.
It means until 2026, Bangladesh will be able to enjoy all the benefits applicable to least developed countries (LDC).
In the budget announcement, the government promised to provide all possible policy supports to businesses.
Traders in Bangladesh are expected to improve their competitiveness in the international market during this period, finance minister AHM Mustafa Kamal said in his budget speech.
Meanwhile, the LDC group of the World Trade Organization (WTO) has put forward a proposal to ensure that all trade facilities pertaining to LDCs remain in force for another 12 years after transition.
In 2020, Bangladesh signed its maiden Preferential Trade Agreement (PTA) with Bhutan to boost bilateral trade between the two countries.
Besides, Bangladesh and Sri Lanka have agreed to sign an agreement to allow duty-free access to a range of goods between the two countries.
The country is also striving to sign such agreements with 11 other countries.
The government has also taken steps to improve its ranking in the Ease of Doing Business Index to increase the flow of foreign direct investment.
Bobby Bawa