Kathmandu: Prime Minister KP Sharma Oli has emphasized that Nepal’s preparations for its graduation from the least developed country (LDC) category to a middle-income country signal its progression towards self-sufficiency. He highlighted that this transition will enhance Nepal’s global image.
According to National News Agency Nepal, the Prime Minister addressed the Upper House, responding to concerns raised during discussions on Nepal’s LDC graduation report, 2081 BS. He stated that Nepal’s upcoming graduation would improve its country rating index and create a conducive environment for attracting foreign investment.
Nepal was designated as an LDC by the United Nations General Assembly on November 18, 1971. Currently, it chairs the LDC group of 45 countries and is set to graduate from this category in November 2026, after 55 years.
The Prime Minister noted that post-graduation, Nepal expects increased opportunities to strengthen its economic diplomacy through initiatives like visit diplomacy, the Sagarmatha Sambaad, and investment conferences. He acknowledged recent signs of economic improvement and shared that the current 16th Periodic Plan was created with post-graduation scenarios in mind.
While PM Oli mentioned potential reductions in facilities previously received as an LDC, he also warned that climate change and natural disasters could impede Nepal’s progress. In response, Nepal is engaging diplomatically with international bodies and emphasizing collaborative developmental efforts.
Efforts to upgrade Nepal’s status have been ongoing since 2010 through various plans and programs, with UN reports from 2015, 2018, and 2021 indicating progress in the Human Assets Index and Economic and Environment Risk Index. The recent growth in per capita income has been pivotal in Nepal’s path to becoming a developing country by 2026.
To ensure smooth graduation, the government is executing six key strategies through a high-level steering committee led by the PM, focusing on necessary legal reforms for sustainable upgradation. Efforts are underway to transition Nepal from a landlocked to a land-linked country by enhancing infrastructure and connectivity.
The Prime Minister also discussed strategies to mitigate potential impacts on private and business sectors post-LDC graduation, including labor and employment reforms. He asserted that Nepal meets all criteria for LDC graduation and continues to strengthen foreign relations through effective diplomacy.
Additionally, PM Oli highlighted government priorities on amending the Procurement Act and other policies related to construction, and urged lawmakers to refrain from creating narratives of rampant corruption based solely on government actions against corrupt individuals.
Finally, the PM informed the National Assembly of his upcoming visit to Turkmenistan on August 3 to participate in the Third UN Conference on Landlocked Developing Countries.