LDC graduation postponed by two years for stable transition
Finance Minister Dr. Swarnim Wagle said the government has opted to defer the transition in order to ensure a more stable, irreversible and well-prepared graduation.
KATHMANDU: The government has decided to extend its transition period out of the category of Least Developed Countries (LDCs) by two more years, postponing the immediate graduation process.
Presenting the budget in the joint session of the Federal Parliament on Friday, Finance Minister Dr. Swarnim Wagle said the government has opted to defer the transition in order to ensure a more stable, irreversible and well-prepared graduation.
He stated that although Nepal has already met the minimum criteria set by the United Nations for LDC graduation, additional time is required to strengthen economic, social and institutional foundations.
According to him, the decision is aimed at consolidating long-term economic resilience and advancing a more robust national transformation before formally moving into the developing country category.
Previously, the private sector had also urged the government to extend the transition period by around three years, citing preparedness concerns.
Nepal had originally aimed to graduate from the LDC category by 2026.
