KATHMANDU, May 23: Nepal has officially informed the United Nations (UN) about Nepal’s decision to defer the process of graduating from the status of Least Developed Country (LDC).
Speaking at a press conference briefing organized by the Ministry of Foreign Affairs (MoFA) on Friday, the ministry’s spokesperson Lok Bahadur Chhetri informed that Nepal will not move ahead with the graduation process under the current circumstances. According to him, the government has decided to postpone Nepal’s graduation from the LDC status to a developing country for the time being, citing worsening global economic conditions and growing geopolitical uncertainties.
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Nepal had earlier targeted graduating to the category of a developing country by November 2024. However, the government has now extended the target by six years, setting a new deadline for November 2030.
Provided Nepal graduated from the LDC category, the country is likely to face additional pressure on its economy, as it may lose several external leverages including easy access in international trade facilities being offered to the LDCs. These include customs duty exemptions and quota-free market access in various international markets.
The MoFA has further noted that the long-term economic impacts of the COVID-19 pandemic, along with increasing geopolitical complexities across the globe, have slowed Nepal’s economic recovery and forced the government to delay the graduation plan. Postponing the graduation process is deemed necessary to safeguard the country’s economic stability and prepare more effectively for a sustainable transition in the future.
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