Nepal Formally Requests United Nations to Extend Timeline for Graduation from LDC to Developing Country by Three Years

The government of Nepal has formally requested the United Nations Committee for Development Policy (CDP) to extend the deadline for Nepal’s graduation from the Least Developed Countries (LDC) category to a developing country until November 2029. The Ministry of Foreign Affairs has conducted the necessary correspondence regarding this extension. Previously, Nepal was scheduled to graduate from the LDC list by November 24, 2026. However, considering national and global economic and political circumstances, the government has decided to postpone the graduation until November 2029.

Ministry of Foreign Affairs spokesperson Lok Bahadur Paudel Kshetri informed at a press conference on Friday that the extension request was officially communicated to defer Nepal’s graduation from the LDC list until November 2029. Foreign Minister Shisir Khanal also stated that on May 13, 2026, he sent a formal request to the CDP chair within the United Nations to immediately halt the graduation process.

The government has cited five primary reasons for delaying the graduation timeline. First, regional conflicts and global supply chain disruptions have negatively impacted Nepal’s economy. Second, the World Bank projects Nepal’s economic growth rate to remain limited at 2.3 percent in 2026, which serves as a key basis for the government’s request. Third, upon graduation from the LDC status, Nepal risks losing existing duty-free and quota-free (DFQF) market access privileges, which could reduce employment in productive sectors by up to 35 percent.

The government noted that the sustainable transition strategy has not been implemented as expected. Furthermore, the post-COVID-19 economic recovery remains unstable, compounded by geopolitical tensions and the effects of climate change which have added additional challenges to the economy. Additionally, recent developments in the Middle East have affected remittances, a significant source of foreign currency reserves. The government’s analysis also points to rising prices of fuel, food items, and fertilizers, which have impacted the tourism industry and the overall national economy.