FNCCI welcomes UN decision to extend Nepal's LDC graduation preparation period

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the United Nations General Assembly's decision to extend Nepal's preparation period for graduation from the least developed country (LDC) category until November 24, 2029.

In a press release issued on Friday, FNCCI said the extension granted by the UN General Assembly's 81st session would give Nepal an additional three years to undertake economic, structural and institutional reforms before graduation.

FNCCI President Anjan Shrestha has said the decision has provided Nepal with an important opportunity to strengthen the country's economic foundation and complete preparations for graduation.

“Graduating from LDCs is an important milestone in Nepal's development journey. However, the real success of graduation is determined by how much our economy can compete in the international market thereafter, how much production and exports can be increased, and how much sustainable employment can be created. Therefore, FNCCI has long been raising the need for adequate preparation,” Shrestha said.

FNCCI said it had long sought an extension, warning that the possible loss of duty-free and quota-free market access, coupled with high production costs, a weak industrial base and limited export markets, could affect industries, exports and employment if adequate preparations were not made.

It said priority should be given to boosting industrial production, reducing production costs, promoting exports, safeguarding market access, upgrading quarantine and laboratory facilities, addressing non-tariff barriers, and strengthening the capacity of small and medium-sized enterprises and women entrepreneurs.

FNCCI has also called for joint efforts from the government, private sector, development partners and the international community, stressing that effective cooperation will be necessary to make full use of the extended preparation period.