Nepal's Graduation from LDC Status Postponed to 2029

Kathmandu. Nepal's time to graduate from the Least Developed Country (LDC) list has been pushed back by three years. This is the third time the deadline has been extended. Nepal's formal process to graduate from the LDC list to a developing nation began in 2015. Although the goal was to graduate within three years, Nepal's graduation was extended to 2021 due to the economic impact of the 2015 earthquake. The United Nations General Assembly formally recommended Nepal for graduation in November 2021. However, Nepal's graduation did not happen in 2021 due to COVID-19. To address the social and economic impacts of the COVID-19 pandemic, Nepal was given a five-year period instead of three years for graduation. The UN General Assembly unanimously passed a proposal to extend Nepal's preparation period for graduation until November 24, 2029. This extension was requested by Nepal due to insufficient preparation. Experts say that repeatedly extending the deadline does not send a good message. Former Vice-Chairman of the National Planning Commission, Prakash Kumar Shrestha, stated that repeatedly extending the deadline could affect how Nepal is perceived. He said, 'Other countries might develop mistrust, considering Nepal has not fulfilled its commitments.' He added, 'Extending the deadline does not cause any economic loss to Nepal, but it can affect how the international community perceives it.' Nepal had requested an extension of the preparation period because the trade concessions and special assistance available to LDCs would change after graduation. The government argued that more time was needed to strengthen economic growth, production capacity, and institutional preparedness. The Ministry of Foreign Affairs stated that Nepal has committed to achieving graduation within the extended deadline in a smooth, sustainable, and irreversible manner. Former Secretary of the Ministry of Foreign Affairs, Dr. Madan Bhattarai, said the time was extended due to insufficient preparation. He clarified that repeatedly extending the deadline has no other loss for Nepal except for potential issues with credibility. While graduating to a developing nation is a good thing, he believes it is better not to be removed from the LDC list until the country is self-reliant and economically prosperous. Nepal has stated that it will expand production capacity, strengthen its institutional base, and effectively implement a smooth transition strategy during the extended period. The implementation of the 2030 Agenda for Sustainable Development and the Doha Programme of Action will also be prioritized. The Ministry of Foreign Affairs stated that Nepal has cited global economic uncertainty, climate-induced disasters, and external crises as factors affecting its preparations. The Ministry of Foreign Affairs stated that Nepal has committed to achieving graduation within the extended deadline in a smooth, sustainable, and irreversible manner. Nepal has faced various crises during this period. The country's politics is a major reason for this. The country's politics has not been stable. The country has always gone through political transitions. In addition, it has faced disasters such as earthquakes, COVID-19, floods, and landslides. Former Vice-Chairman Shrestha said that the time was extended because Nepal's situation has not improved. He argued that the series of events has weakened Nepal economically and stated that much effort is needed to overcome it. In South Asia, only Afghanistan is economically weaker than Nepal. Shrestha said that Nepal has not been able to utilize the facilities it receives due to being on the LDC list. Although Nepal is a member of the World Trade Organization, it has not been able to utilize the benefits from it. Nepal has not been able to utilize the facilities it receives, including tax-related benefits. Shrestha said that if Nepal is graduated in this situation, it will face a significant economic setback.