KATHMANDU: The Government of Nepal has formally requested the United Nations to postpone its graduation from Least Developed Country (LDC) status from November 2026 to November 2029.

Foreign Ministry Spokesperson Lok Bahadur Poudel Chhetri announced that the Foreign Minister officially proposed this extension to the UN Committee for Development Policy on May 13, 2026, citing severe domestic and global economic constraints.

This decision is driven by five major economic factors, primarily the World Bank’s low economic growth projection of just 2.3% for Nepal in 2026.

Additionally, graduating right now risks losing critical Duty-Free and Quota-Free market access, which officials estimate could slash manufacturing jobs by up to 35%.

The delay is further compounded by a slower-than-expected implementation of Nepal’s “Smooth Transition Strategy” and a fragile post-pandemic recovery that is currently being hindered by geopolitical tensions and climate change.

Finally, ongoing conflicts in West Asia threaten vital remittance inflows—Nepal’s primary source of foreign forex reserves—while rising prices for fuel, food, and fertilizer continue to strain the national economy and tourism industry.