KATHMANDU, March 19: The Ministry of Finance has initiated preparations to implement strategies necessary for Nepal’s transition from a least developed country (LDC) to a developing nation.
At a meeting held at the MoF on Wednesday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel directed officials to move forward with comprehensive preparations.
Vice Chairperson of the National Planning Commission (NPC), Prof Shiva Raj Adhikari, stressed the importance of timely transitional strategies in close coordination with all stakeholders.
Discussions also centered on ensuring that the budget, policies, and programs for the fiscal year 2025/26 support a smooth and sustainable transition.
The Finance Ministry has been tasked with formulating policies for sustainable economic growth, employment-driven fiscal strategies, stable monetary policies, effective resource mobilization, and development assistance management. Additionally, the ministry aims to strengthen trade analysis, boost capacity for high-return projects, and improve financial access.
Nepal’s graduation criteria include per capita gross national income, the human asset index, and the economic and environmental vulnerability index.
Following the graduation, Nepal is expected to benefit from increased access to development and commercial investments, foster new trade and economic partnerships, advance sustainable development goals, and bolster its global image and credibility. However, the transition may also have implications for exports, pricing, and employment.
Nepal is set to graduate from LDC status in November 2026.