3-yr LDC graduation deferment to help boost Bangladesh Pharma sector’s global readiness | Business
DHAKA, April 26, 2026 (BSS) – Bangladesh's pharmaceutical sector is expected to gain vital momentum if the proposed three-year deferment of the country's graduation from the Least Developed Country (LDC) status is approved, giving the industry a crucial window to strengthen
its global competitiveness and innovation capacity.
In FY2024-25, the sector earned about $213 million from exports, reflecting steady growth driven largely by flexibilities under the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which has allowed local manufacturers to produce affordable generic versions of patented medicines.
Bangladesh is currently set to graduate from LDC status on November 24, 2026. However, the government has formally sought a three-year extension from the United Nations Committee for Development Policy, aiming to shift the timeline to 2029. Industry insiders say this additional time could play a decisive role in ensuring a smooth and sustainable transition.
Stakeholders believe the proposed deferment would provide the pharmaceutical sector with the necessary time to gradually adjust to the end of TRIPS flexibilities, while maintaining the supply of affordable medicines.
The transition period would allow companies to upgrade production systems and comply with stringent global standards set by regulators such as the US Food and Drug Administration, the European Medicines Agency and the World Health Organization's Good Manufacturing Practices (WHO-GMP).
Experts noted that aligning with international intellectual property rules and regulatory frameworks will ultimately enhance Bangladesh's credibility in global markets.
The additional three years would help firms strengthen quality assurance, obtain regulatory approvals, and expand access to highly regulated markets.
The sector, which currently meets about 98 percent of domestic demand and exports to over 150 countries, is expected to retain its growth trajectory with careful planning and policy support.
Leaders of the Bangladesh Association of Pharmaceutical Industries (BAPI) have welcomed the government's initiative, noting that a phased transition would help protect both industry growth and public health interests.
Talking to BSS, Major General (retd.) Md. Mustafizur Rahman, CEO (BAPI & APIiPSL), stressed that the additional time would enable companies to address existing gaps in biotechnology, Active Pharmaceutical Ingredients (API) production and clinical research infrastructure, while continuing to ensure the availability of affordable medicines.
He mentioned that the extended timeframe is also seen as critical for advancing key reforms, including the operationalisation of the API Industrial Park, which will reduce reliance on imported raw materials.
Experts laid emphasis on strengthening research and development, particularly through closer collaboration between academia and industry.
They mentioned that bridging this gap will be essential for transitioning from a generics-based model to one driven by innovation and high-value products.
They observed that while LDC graduation marks a significant milestone in Bangladesh's economic progress, a well-managed transition is key to sustaining success in the pharmaceutical sector.
Professor Mustafizur Rahman, Distinguished Fellow of the Centre for Policy Dialogue (CPD), said that the proposed three-year deferment is widely seen as a pragmatic step that would allow the industry to build resilience, enhance innovation, and strengthen its position in the global pharmaceutical market.
With coordinated efforts from the government, industry and research institutions, he mentioned that Bangladesh's pharmaceutical sector will be able to turn the post-LDC transition into an opportunity for long-term growth and global integration.
Deputy Managing Director (DMD) of the Dutch-Bangla Bank Limited, Mohammed Shahid Ullah observed that LDC graduation is a testament to Bangladesh's resilience and progress, but timing matters.
"A deferment, if strategically planned and time-bound, is not a retreat but a prudent step toward sustainable advancement. By aligning short-term stabilization with long-term transformation, Bangladesh can convert this transition into an opportunity, emerging not just as a graduate, but as a globally competitive and resilient economy," he added.
According to a publication on 'Problem and Prospect of Pharmaceuticals Industry of Bangladesh amid LDC Graduation', amid LDC graduation, Bangladesh will face several problems related to patent rights and payment, value addition conditions, and incremental product
costs for non-generic pharmaceutical products.
Meanwhile, market access in different export potential countries becomes stringent if the quality of products and investment in API and R&D is not ensured.
Even in the domestic market, the price of pharmaceutical products will increase due to rising production costs for patent payment. Given the context, the government has to play a
significant role in the rapidly growing pharmaceutical industry, providing policy support for easier drug production and marketing process, and registration in the potential export destination.
The fully operational API Park with all other utilities will act as a turning point for this purpose. Bangladesh needs to expand its capacities in API & molecule production, R&D, and bio-equivalence testing capacities to promote the industry.
Similarly, addressing the lack of patentable molecules in the domestic industry, Bangladesh must ensure discoveries and well-known molecules are placed in the public domain before
graduation to avoid the negative effects of patent regime after graduation.
Moreover, Bangladesh needs to raise the capacity of Contract Research Organizations (CROs) to facilitate clinical trials for biosimilar and biotech products and take concrete measures to strengthen capacities, particularly in IP law and patent law, chemical synthesis, patent examination, synthesis chemistry expertise, lab technicians, and accreditation specialists.
Accordingly, Bangladesh needs to make available qualified CROs for the Bioequivalence (BE) test & study center and prepare trained professionals to undertake CROs for BE studies. The cited ramifications along with the public and private sector initiatives to establish research institutions capable of undertaking R&D activities and set up institutions like NIPER and CDRI in India, simplified regulatory requirements for new investments or
FDI in the API sector for firms can expand the export opportunity of Bangladesh.
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