"It is obvious now that Bangladesh cricket is going nowhere and the ICC (International Cricket Council) instead of refusing to review their Test status should look at ways to help them raise their standards," Miandad told Reuters on Wednesday.
Bangladesh lost by an innings and 261 runs to England at Lords last week and so far in 37 Tests have won just one game against a depleted Zimbabwe side last year.
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"I am not against weaker cricket nations like Bangladesh and Zimbabwe. But when the ICC could suspend the Test playing rights of Zimbabwe last year because they were weakened by the players' boycott why can't they do the same for Bangladesh because of its poor performances," Miandad said.
"I would suggest the ICC introduce a promotion and relegation system in international cricket and revise its future tours programme," said Miandad, who scored 8,832 runs in 124 Tests for his country.