As Bangladesh prepares for its graduation from Least Developed Country (LDC) status in 2026, efforts to attract foreign direct investment (FDI) and further integrate into the global trade system have intensified. Ready-made garments (RMG) remain Bangladesh’s largest export sector, making it the world’s second-largest exporter after China. The pharmaceutical industry has also experienced rapid expansion, with a 27 per cent year-on-year growth rate in 2021-2022, meeting 98 per cent of domestic demand and exporting to 160 countries.
Since 2010, the Enhanced Integrated Framework (EIF) has supported Bangladesh in trade-related capacity-building, e-commerce development, and strengthening key export sectors such as RMG, pharmaceuticals, and agro-processing. To ensure long-term competitiveness, EIF has played a crucial role in reinforcing trade policies, fostering public-private collaboration, and providing capacity-building initiatives.
The EIF-backed Diagnostic Trade Integration Studies (DTISs) conducted in 2016 and 2023 have been instrumental in guiding trade policy development. The 2016 DTIS identified seven key sectors, while the 2023 DTIS Update (DTISU) expanded this list to 12, incorporating leather goods, light engineering, plastics, agro-products, fisheries, software services, tourism, and nursing and midwifery services. This roadmap is essential for Bangladesh’s smooth transition from LDC status and long-term economic sustainability.
To implement the DTIS recommendations, the WTO Wing was established to coordinate trade policies, Aid for Trade donors, and stakeholder engagement. Between 2017 and 2019, over 1,200 government officials, private sector representatives, and academics benefited from EIF-supported training, enabling Bangladesh to develop in-house expertise in trade law. This has allowed the country to manage WTO dispute settlements independently, reducing reliance on international consultants.
Bangladesh’s policy reforms, such as the National Active Pharmaceutical Ingredients Policy (2018) and the revised Export and Import Policies (2021-2024), have bolstered its export competitiveness. EIF support has also facilitated Bangladesh’s participation in regional trade initiatives, including paperless trade collaboration with Bhutan, Nepal, and Timor-Leste, as well as e-commerce training for women entrepreneurs.
Recognising the need for diversification, Bangladesh is expanding into high-end fashion. EIF-supported training at the Centre of Innovation Efficiency and Occupational Safety and Health (CIEOSH) has helped garment professionals develop high-quality products using traditional materials. In the agro-processing sector, EIF-backed initiatives have reduced post-harvest losses and prepared agricultural exports for the challenges of LDC graduation.
With a growing trade knowledge base and the successful implementation of policies, Bangladesh is positioning itself for a competitive future beyond LDC status. By leveraging international collaboration, institutional strengthening, and export diversification, the country is set for sustained economic growth and greater global trade integration.
