Nepal’s LDC graduation signals progress, says PM Oli

KATHMANDU: Prime Minister KP Sharma Oli has said that Nepal’s preparations for its graduation from the category of least developed country (LDC) to a middle-income country demonstrate its progress towards self-sufficiency and enhance its global image.

Replying to concerns raised during discussions on the study report on Nepal’s LDC graduation, 2081 BS, in the National Assembly on Wednesday, PM Oli said that graduation will strengthen Nepal’s country-rating index and create an environment conducive to foreign investment.

Nepal was listed as an LDC by the United Nations General Assembly on November 18, 1971. It currently chairs the group of 45 LDCs and, after 55 years, is preparing to graduate to middle-income status in November 2026.

Prime Minister Oli said that following graduation, Nepal is expected to secure more opportunities to bolster its economic diplomacy through visit diplomacy, the Sagarmatha Sambaad and investment conferences.

“Improvements in economic indicators have now been observed. The current 16th Periodic Plan was prepared with projections for the post-graduation scenario,” PM Oli told the Upper House of the federal parliament.

He warned that Nepal’s advancement to developing-country status may result in a reduction of some facilities it has been receiving as an LDC, and cautioned that the impact of climate change and natural disasters could delay its graduation.

In view of such challenges, the prime minister said Nepal has been making diplomatic efforts internationally through relevant bodies, calling for collaboration on development and emphasising the need to increase production and productivity. “Let us collaborate on developmental endeavours,” he urged.

Since 2010, Nepal has worked towards upgrading through various plans, budgets and annual programmes. UN reports in 2015, 2018 and 2021 showed progress on the Human Assets Index and the Economic and Environmental Risk Index.

Nepal is poised to achieve developing-country status by 2026, mainly due to recent notable growth in per-capita income. To ensure a smooth transition, the government has implemented six key strategies through a high-level steering committee led by Oli.

During his address, Oli mentioned that Nepal has initiated processes to repeal, revise and formulate laws for sustainable upgrading, and is working to transform Nepal from a landlocked to a land-linked country through enhanced infrastructure and connectivity.

He highlighted efforts to develop value chains via multinational companies and said the government has prepared strategies to mitigate potential impacts on the private and business sectors after graduation, including reforms in labour and employment.

PM Oli claimed that Nepal meets all criteria for LDC graduation and that its economy remains on a positive growth trajectory despite a global downturn. He added that steps have been taken to reinforce Nepal’s foreign relations through effective diplomacy and to implement international treaties and agreements.

The prime minister said the government is focusing on amending the Public Procurement Act and various policies and laws related to the construction sector, and urged lawmakers not to generate narratives of rampant corruption based on government actions against corrupt figures.

He also informed the House of his forthcoming visit to Turkmenistan on August 3 to take part in the Third UN Conference on Landlocked Developing Countries.

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