Kathmandu, Feb. 27
President of the Federation of Nepalese
Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal has called for
postponing Nepal’s graduation from the Least Developed Country (LDC) category
to a 'developing nation'.
Nepal is scheduled for graduation in
November 2026.
Speaking at a meeting with newly appointed
United Nations Resident Coordinator Lila Peters Yahya in Kathmandu on Friday,
Dhakal said that Nepal remains structurally unprepared for the transition.
According to him, the FNCCI has formally
requested that the graduation be deferred by three years, until November 2029,
following extensive consultations with the business community.
"The objective of this request is to
ensure that Nepal’s graduation is sustainable and beneficial to the population,
rather than symbolic. Nepal only recently met the per capita income threshold
and continues to face high economic vulnerability," said Dhakal.
He added that while banks have liquidity
and private sector investment appetite remains weak, a premature graduation
could create additional challenges.
Referring to Bangladesh’s request for a
similar extension, he said Nepal’s private sector demand is also relevant. Bangladesh
and Laos are scheduled to graduate together.
Dhakal highlighted challenges faced by
small and medium-sized enterprises, stating that around 300,000 agro-based
industries could be affected by rising costs and the withdrawal of trade
preferences in European markets following graduation.
Likewise, Yahya suggested that discussions
involving the UN, the World Bank, the International Monetary Fund, the
government and private sector could help reach a conclusion on the proposed
extension.
She also emphasised the need for
predictable policies and trust in national institutions to support economic
development, the FNCCI informed in a statement.
She suggested aligning strategies for
import substitution and export promotion accordingly and expressed interest in
the upcoming elections and the post-election economic outlook.
Published in The Rising Nepal daily on 28 February 2026.
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