Nepal reports its unreadiness to graduate from least developed country club
Summary
Nepal has decided to postpone its graduation from the Least Developed Countries category until November 2029 due to economic challenges and geopolitical tensions impacting growth, trade, and remittances.
Key Points
- Nepal has formally requested to postpone its graduation from the Least Developed Countries (LDC) status until November 2029 citing worsening economic and geopolitical challenges.
- The government warns that losing LDC status could lead to a 35% decline in jobs in productive sectors due to loss of trade preferences.
- Nepal's Smooth Transition Strategy implementation has been slower than expected, raising concerns about preparedness for graduation.
- Analysts highlight weak trade diplomacy, low private sector productivity, and lingering effects of the Covid-19 pandemic and geopolitical conflicts as key issues.
