Process to Graduate Nepal from LDC Status Postponed; Extension for Preparation Period Recommended

Finance Minister Dr. Swarnim Wagle has played a key role in postponing Nepal’s graduation process from the Least Developed Country (LDC) category twice. Although Nepal is scheduled to graduate to a developing country by November 2026, it has requested the United Nations to extend the preparation period by an additional three years. After graduation, Nepal will face challenges and opportunities, including the risk of losing preferential market access while attracting private investment. 3 Jestha, Kathmandu.

Regarding the delay in Nepal’s graduation from the LDC group, Finance Minister Dr. Swarnim Wagle has taken a leading role on two occasions. Following the regular process, Nepal would have been eligible for graduation as early as 2018. However, at that time, the government requested the United Nations to postpone the decision, arguing that the country was not yet prepared for graduation.

In 2021, the decision was made for Nepal to graduate, with the change taking effect in November 2026. However, Nepal is currently seeking to extend the five-year preparation period by an additional three years. Dr. Wagle continues to lead the Ministry of Finance. The United Nations Economic and Social Council had confirmed Nepal’s eligibility for graduation during its first review in 2015.

Nepal formally communicated with the United Nations in 2018 to delay the graduation process from the LDC status by three years. Furthermore, Nepal had been enduring significant economic shocks due to the earthquake and the blockade, with reconstruction efforts still ongoing, which contributed to the decision to defer the graduation. Based on Dr. Wagle’s recommendation, the UN Committee for Development Policy subsequently postponed the review.