FNCCI calls for clear, time-bound preparation for post-LDC graduation

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has called for clear, time-bound and implementable preparations from now on to safeguard the competitiveness of Nepali products after the country’s graduation from Least Developed Country (LDC) status.

Speaking at an awareness workshop in Kathmandu on Monday, FNCCI President Anjan Shrestha said that, although the government could seek a temporary postponement of graduation, effective preparation was essential because trade preferences and other facilities may change. He warned that the previous preparation period had not been used as expected and urged that any additional time now available must be used effectively.

“The postponed time will arrive immediately. As facilities are gradually removed following graduation, the bases for competing in the international market are production cost, quality and efficiency. So, the government should immediately improve and advance these sectors. Moving forward from facility-based competition towards capacity-based competition, the private sector must also increase investment in product quality, technology, value chain and market diversification,” FNCCI President Shrestha said.

Industrialists, businesspeople and representatives of small and medium enterprises (SMEs) attending the 'Awareness Workshop on Graduation from Least Developed Country' stressed the need for immediate transition planning. The event was organised by the Enhancing Nepal's Inclusive Business Environment and SME Growth Project under the FNCCI.

Bed Bahadur Shrestha, FNCCI Bagmati Province President, said the impact of LDC graduation would be felt by industries and businesses at provincial and local levels and that the private sector must prepare in a timely manner. He added that graduation should be treated not merely as a challenge but as an opportunity, achievable through closer collaboration between the government, the private sector and development partners.

Project consultant Bhojraj Pokharel outlined the opportunities and challenges associated with graduation and urged structured transition planning. He said that to capitalise on post-graduation opportunities Nepal must boost production capacity, improve quality, diversify markets and enhance private-sector competitiveness.

Roshan Nepal, head of the project, set out its objectives as creating an inclusive and competitive business environment, strengthening SME capacity and expanding market access. He said sectoral and market-specific studies on potential impacts after the exit are underway.

The workshop was the fourth in a series by the FNCCI to raise awareness at the provincial level, following sessions in Biratnagar, Birendranagar and Dhangadhi. The FNCCI said similar programmes will be held in Bhaktapur and Lalitpur in the coming days.