Nepal prepares for transition from LDC to Developing Nation by 2026

KATHMANDU: The Ministry of Finance has started preparatory work for the strategy implementation required as Nepal moves from the Least Developed Countries (LDCs) group to a developing nation.

In a meeting held at the Ministry of Finance, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel emphasized the importance of advancing Nepal’s work with full preparation.

He directed all employees to collaborate and coordinate effectively to achieve this goal.

Vice Chairman of the National Planning Commission, Prof. Dr. Shivaraj Adhikari, highlighted the need to make the transitional strategy timely and relevant, stressing the importance of coordination with all stakeholders to move forward.

The meeting also focused on the preparations required for the upcoming fiscal year 2082/83 budget, with an emphasis on ensuring that proposed subjects, policies, plans, and programs contribute to making the process smooth and sustainable.

The Ministry of Finance’s responsibilities include policies related to sustainable economic growth and job creation, a stable monetary policy, availability of funds, and managing development aid. Additionally, enhancing business analysis and increasing capacity and financial access for high-return projects are also key tasks.

Indicators for the transition include per capita Gross National Income, human development indicators, and economic and environmental risk indices.

Post-transition, it is anticipated that Nepal will experience stronger access to development and business investments, foster new trade and economic partnerships, contribute to sustainable development, enhance its national image, and increase its credibility globally.

According to Vice Chair Adhikari, the transition is expected to impact areas such as goods exports, prices, and employment.

Nepal is scheduled to graduate from the LDC group to a developing nation in November 2026.