Nepal Granted Three-Year Extension to Graduate from LDC Status
The UN General Assembly has extended Nepal’s preparatory period until November 24, 2029, allowing more time for economic reforms and institutional strengthening.
Kathmandu, Oct 31: Nepal has secured a three year extension to its preparatory period for graduation from the Least Developed Countries (LDC) category, allowing the Himalayan nation additional time to implement reforms and strengthen its economy before completing the transition.
The United Nations General Assembly (UNGA) unanimously approved the extension until November 24, 2029, on Thursday, Ministry of Foreign Affairs spokesperson Lok Bahadur Chhetri said during a press briefing on Friday.
Nepal was initially scheduled to graduate from the LDC category on November 24, 2026, following a decision adopted by the UN General Assembly in November 2021.
The latest resolution, numbered 81/L.8, was adopted during the Assembly’s 81st session in New York. It followed a joint proposal by Nepal and Bangladesh seeking additional time to prepare for their respective transitions.
Chhetri said the extension would provide Nepal with an opportunity to undertake necessary structural and institutional reforms before graduating from the category.
The additional period is expected to help the country strengthen its production capacity, improve institutional effectiveness and accelerate socio-economic transformation.
Nepal had sought more time to prepare for the transition earlier this year. Foreign Minister Shisir Khanal wrote to the relevant UN agency on May 13 and 15, requesting an extension of the preparatory period.
The government believes the additional time will help address existing economic and institutional challenges while ensuring a smoother transition out of the LDC category.
Graduation from the LDC status is based on a country’s progress in meeting specific development criteria, including income levels, human assets and economic and environmental vulnerability.
While the transition represents an important development milestone, countries graduating from the category may also face changes in access to certain international support measures and preferential trade arrangements.
The extended preparatory period will therefore be important for Nepal as it works to strengthen its economic resilience and prepare for the opportunities and challenges associated with graduation.
The UN decision gives the country until November 24, 2029, to complete the additional preparations before its graduation from the LDC category takes effect.
