While Bangladesh's move toward graduating from the Least Developed Country (LDC) status is a testament to decades of perseverance and growth, it will be time to take on the weight that comes with it once the celebration dies down.

Two approaches can be taken: one is to postpone the official graduation, and the other is to face the game head on. However, there are two sides of the coin for both scenarios.

If we look at postponement, then ideally there is a chance to fix the existing issues in our economy and give ourselves a better shot for a successful transition. Note the use of the term "ideally", because it's often not the reality. Two things might happen here: first is that there might be an indefinite postponement, and second is the factor of unpredictability. To address the first issue, an indefinite postponement will create a bubble of comfort from the continued misuse of privileges that come with being an LDC, keeping Bangladesh stagnated with no concrete steps towards improvement. The second issue could be another Ukraine-Russia war, another Covid-19, or another global meltdown, pushing the graduation back further. Therefore, a hard deadline is required, after which, no matter the status of the economy we need to face the transition head-on. 

The second approach would be to go ahead with the graduation and fix our issues as they come up. Because unless we drop ourselves into the ocean of Developing Countries (DC), we will not learn to swim and navigate the market.

Losing preferential market access is like starting at the halfway mark. For decades, Bangladesh's garment sector has thrived under duty-free and quota-free access to the European Union and other key markets. Over 83% of Bangladesh's exports are ready-made garments, with the EU alone absorbing over half of these. When the graduation hits, tariffs could rise from zero to as high as 12%, making Bangladeshi goods pricier and, consequently, less competitive because countries like Vietnam, are already formidable with its free trade agreements and superior infrastructure and Cambodia and India have more favourable tariffs. The potential fallout looks grim because millions of workers (mostly women) could lose their jobs, which will compound social inequalities.

But all is not bleak. If Bangladesh recalibrates its export sector, it has a chance to emerge stronger. But strategies as robust as the challenges are needed. The first frontier is diversification of both market and product. It's time to champion other sectors like pharmaceuticals, ICT, and agro-processed goods. Pharmaceutical exports, for instance, could flourish to meet rising global demand, if we can harness our existing capacity and pivot toward patented medicines post-LDC graduation.

Secondly, technology holds the key to future competitiveness as automation in manufacturing, data-driven supply chain management, and AI in design and forecasting can increase efficiency. Thirdly, Bangladesh's infrastructure inefficiencies in ports, roads, and customs have long been an Achilles' heel. According to a World Bank study, logistics add around 20% to the cost of exports compared to a global average of 10-15%. So, we need better logistical processes and facilities to restore competitiveness.

The road ahead isn't smooth and internal challenges like bureaucratic red tape, lack of innovation culture, and political instability could derail our progress. While the private sector is dynamic, it often struggles with fragmented coordination which requires a bold and cohesive national strategy in the form of public-private partnerships, industry-specific task forces, and a unified export strategy.

With all that said, Bangladesh has weathered storms before. Preparing for post-LDC life will require determination. The global stage is daunting without crutches, but Bangladesh has what it takes to run. 

The author is the chairman at Financial Excellence Ltd