Dr Anisuzzaman Chowdhury, special assistant to the chief adviser, has questioned the country's low tax-to-GDP ratio compared to nations like Vietnam, Bhutan, and Cambodia, suggesting that increasing this ratio could eliminate the need for foreign aid.
Speaking at a press conference at the Foreign Service Academy in Dhaka on Tuesday on the chief adviser’s meeting on Bangladesh’s graduation from LDC (Least Developed Country) status, Anisuzzaman said Bangladesh must become self-reliant, as it has sufficient strength and is progressing toward middle-income status.,
He stated that the idea of postponing LDC graduation is baseless.
“The duty-free and quota-free facilities we currently enjoy will not end in 2026. Many countries have already informed us they will continue the benefits. The European Union, for example, has said it will extend facilities until 2029. So, why should we delay? Australia has said graduation or not, existing benefits will continue. The UK echoed the same. Recently, when the chief adviser visited China, they also said they would maintain support.
"So the concerns some of our business friends have are already addressed. It is a matter of understanding the situation.”
He acknowledged that Bangladesh has some institutional weaknesses, such as the absence of a dedicated trade agency. “We have taken steps to establish a separate trade cell that will handle trade matters exclusively. We plan to create a strong trade negotiation body.”
Responding to a question, he said: “Foreign aid is not a major issue. This dependence on foreign aid is a colonial hangover. We have already reduced the aid-to-GDP ratio significantly. Even if we do not get aid, it will not be a problem."
"Reliance on aid tends to make us lazy. Since 2010, under the previous government, foreign aid dependence increased, and our tax-to-GDP ratio fell from 10% to 6%. That is why we are focusing on using domestic resources. Reforms are being made in the National Board of Revenue (NBR) and even in the police," Anisuzzaman added.
He continued: “At today’s meeting, we thoroughly reviewed our preparations for graduating from LDC status. We identified where we are strong and where we need to improve. We are reasonably satisfied. Our 'plane' will fly — the risk of crashing is low. We can graduate from LDC status by 2026, but we must take precautions in advance.”
The special assistant also said: “Employment might face pressure, the private sector might feel strained — we discussed these areas too and planned future preparations accordingly. In the policy frameworks we create, we will list possible challenges and stay prepared. A high-level committee will be formed to monitor this constantly. It will not only include government officials — we will bring in people from the private sector and international experts. If needed, we will involve all stakeholders in this journey.”
He added: “We must remember that many countries weaker than us have already graduated from LDC status. Bhutan graduated just after the Covid-19 pandemic. If they can do it, why not us? We must have that confidence. The Pacific Island nation Samoa also graduated. We discussed today that we have enough capability right now to move forward.”
Meanwhile, Chief Adviser’s Press Secretary Shafiqul Alam said: “At today’s meeting, the chief adviser said, ‘We have already made our decision — we must move forward at full speed.’
"He asked that all necessary preparations be taken so that no sector is harmed. Instead, we must explore how to get the maximum benefit from this transition. He also emphasized making Bangladesh a manufacturing hub in this region after graduation and instructed steps to monitor everything closely.”
