Nepal has officially informed the United Nations about its decision to defer the process of graduating from the status of a Least Developed Country (LDC).
Speaking at a press briefing organized by the Ministry of Foreign Affairs, the ministry’s spokesperson Lok Bahadur Chhetri said Nepal will not move ahead with the graduation process under the current circumstances.
According to the ministry, the government has decided to postpone Nepal’s transition from LDC status to a developing country due to worsening global economic conditions and growing geopolitical uncertainties.
Nepal had earlier aimed to graduate 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.
If Nepal graduates from the LDC category, the country could face added economic pressure as it may lose several international support measures currently available to LDCs. These include customs duty exemptions and quota-free market access in various global markets.
The Ministry of Foreign Affairs also noted that the long-term economic effects of the COVID-19 pandemic, along with increasing geopolitical complexities worldwide, have slowed Nepal’s economic recovery and prompted the government to delay the graduation plan.
According to the ministry, postponing the process is necessary to safeguard the country’s economic stability and better prepare for a sustainable transition in the future.
