Nepal's LDC graduation may affect exports, jobs: ILO Report
Summary
A new ILO report warns that Nepal's graduation from LDC status could reduce exports and threaten employment, especially for women and informal workers, but also offers an opportunity for economic transformation with strategic policies.
Key Points
- Nepal's graduation from Least Developed Country (LDC) status in November 2026 may reduce exports by 2.5 to 4.3 percent due to loss of trade preferences.
- Export-oriented sectors like apparel and textiles may face higher tariffs and stricter compliance, affecting employment risks, particularly for women and informal workers.
- The transition could be an opportunity for economic transformation if supported by policies in trade facilitation, tourism, and ICT.
- Tripartite collaboration among government, employers, and workers is necessary to manage the transition and safeguard jobs and enterprises.
