Kathmandu: A meeting of the National Assembly (NA) today unanimously passed a proposal seeking to discuss a study report regarding Nepal’s graduation from the least developed country (LDC) to a middle-income developing country. Kamala Devi Panta, President of the Committee on Development, Economic Affairs, and Good Governance, tabled the proposal before the session. The Committee had, earlier on June 19, presented the report to the House.
According to National News Agency Nepal, Panta highlighted that Nepal’s graduation to a middle-income country could likely enhance its international trade. However, she also warned about potential post-graduation challenges. The report outlines both the possible advantages and drawbacks of this transition, she noted.
Among the three criteria for graduation-human assets, economic and environmental vulnerability index, and per capita income-Nepal has met the first two indicators. However, the per capita income criterion remains unmet, Panta informed the Upper House.
Panta further mentioned that Nepal might lose access to certain subsidies it currently receives as an LDC and could be required to pay up to two percent interest on World Bank loans. She emphasized that action plans for the graduation must be prepared and implemented by November 2026.