After Bangladesh graduates from least developed country (LDC) status in 2026, the government plans to offer incentives to exporters to maintain their competitiveness in international markets. These incentives will come in various forms, as direct cash subsidies on export receipts won’t be feasible. State Minister for Commerce Ahsanul Islam Titu stated that the subsidies will adhere to the World Trade Organization’s framework.
While the exact methods for providing subsidies weren’t disclosed, officials in the commerce ministry suggested possibilities such as subsidies on electricity bills, technology upgrades, and skills development funds. China and India, despite being developed and developing nations respectively, already provide similar subsidies to exporters.
Currently, the government offers subsidies to 43 sectors, totaling nearly $1.0 billion annually. To address challenges post-LDC graduation, the government is negotiating trade agreements with major partners to retain duty benefits. Additionally, a high-powered committee is working to identify sector-specific challenges and recommend solutions to ensure local exporters and industries remain competitive.
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