Government Requests United Nations to Suspend Nepal’s Graduation from LDC to Developing Country Status
The government has formally requested relevant United Nations bodies to temporarily halt the process of Nepal’s graduation from the ‘Least Developed Country’ (LDC) category to developing country status, according to a senior official from the Ministry of Foreign Affairs. The ministry recently sent an official letter making this request. This matter primarily falls under the purview of the UN Economic and Social Council. The official did not specify the duration for which the suspension has been requested. Typically, the evaluation of eligibility criteria is conducted every three years.
In 2021, the UN General Assembly approved a proposal to graduate Nepal, setting a five-year transition period to move into the developing country group, which is due to conclude this November. According to economist Poshraj Pandey, despite Nepal’s request, the decision rests with the UN council and remains uncertain. “Bangladesh has also sought a deferral, so Nepal likely followed suit. Bangladesh remains an LDC, so the question arises of how we can become a developing country,” he explained.
Alongside Nepal, Bangladesh—which is also scheduled for graduation to developing country status—had previously sent a formal request for a deferral similar to Nepal’s. The National Planning Commission recently held a stakeholders’ meeting to discuss the graduation issue. According to NPC Deputy Spokesperson Divakar Luintel, there were varied opinions: “Some advocated for graduation, while others opposed it, arguing that the time was not right.”
The advantages and disadvantages of postponing graduation are as follows. Whether the graduation proceeds immediately or is deferred, both scenarios have their pros and cons. However, most economists agree that long-term benefits arise from graduation. “Graduation is a matter of prestige—it’s like reaching a higher level. By developing our capacities, we can compete effectively,” said former NPC Vice Chairperson Shrestha.