On November 24, 2026, Bangladesh will officially graduate from the Least Developed Country (LDC) list—a significant milestone in its economic progress both nationally and internationally.
However, this transition comes with substantial challenges, particularly in the pharmaceutical sector.
Bangladesh has made remarkable progress in pharmaceutical production for both local and global markets. Domestic companies meet around 98% of the national demand and export to over 150 countries.
This success is largely due to special exemptions under the World Trade Organization’s (WTO) TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement, allowing Bangladesh to produce patented medicines at lower costs.
But after LDC graduation, these privileges will cease, leading to higher production costs and intensified competition from foreign companies.
The loss of patent exemptions means Bangladesh may have to import many life-saving drugs. Multinational companies could sell these medicines at higher prices, potentially making them unaffordable for many citizens.
Additionally, the export market may face challenges, as countries like China and India produce raw materials domestically, allowing them to compete at lower prices.
Currently, Bangladesh’s pharmaceutical industry is heavily dependent on raw materials from these two nations, which could create an uneven playing field.
Beyond pharmaceuticals, other key sectors like ready-made garments, leather, and agro-processed products are also expected to face difficulties. The loss of duty-free access to the European Union and other developed markets will force Bangladesh to compete with powerful exporters like China.
This also means meeting stricter environmental and quality standards, raising production costs. As a result, export earnings might decline, and domestic industries will need to innovate and enhance technological capabilities to stay competitive.
To address these challenges, several key measures need to be implemented. Firstly, the government should increase investment in R&D and foster innovation in the pharmaceutical sector.
Secondly, the production process should be upgraded to meet international standards. Thirdly, legal reforms and administrative enhancements are necessary to boost the capacity for producing patented medicines.
Bangladesh could also seek an extension of the transition period under the TRIPS Agreement from the WTO, allowing local companies more time to produce and research patented drugs, strengthening their position in the global market.
In summary, if the government and private sector work together with strategic planning, the challenges of LDC graduation can be transformed into opportunities.
By overcoming these obstacles, Bangladesh’s pharmaceutical industry, along with other sectors, could establish a stronger global presence. Time is of the essence, and effective, sustainable planning must be undertaken without delay.
