Nepal has formally asked the United Nations to delay its graduation from the Least Developed Country (LDC) category, originally set for November 2026. The country’s concerns revolve around economic difficulties, global uncertainties, and doubts about its readiness for the transition. Nepal’s private sector, in particular, is worried about losing current trade benefits and is advocating strongly against the graduation.
Foreign Minister Sishir Khanal sent an official request to the UN Committee for Development Policy on May 13, seeking to extend Nepal’s graduation date to November 2030. The request is based on five main concerns, including the impact of regional conflicts on the economy, the potential loss of trade benefits, delays in transition preparation, ongoing Covid-19 recovery challenges, and the effects of global tensions on remittances and prices.
Nepal is the second country, after Bangladesh, to ask for a deferral of its graduation. The country, along with Bangladesh and Lao PDR, is currently slated to graduate from the LDC category in November 2026. The decision to graduate is based on specific criteria related to income, human assets, and vulnerability indexes, which Nepal has been meeting over the years.
