Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has stated that the timeline for Nepal’s graduation from the Least Developed Country (LDC) status, currently set for November 2026, must be extended.
During a meeting with the newly appointed UN Resident Coordinator, Lila Pieters Yahia, in Kathmandu on Friday, FNCCI President Dhakal shared that the country is not yet structurally prepared for this transition. He noted that based on extensive consultations with the business community, the FNCCI has formally requested to postpone the graduation by three years to November 2029.
Dhakal expressed that the FNCCI is ready to collaborate with the United Nations to ensure that Nepal’s graduation is not merely symbolic but sustainable and beneficial for the people. He clarified that the private sector is making this demand because Nepal did not initially meet the per capita income criteria, surpassing it only slightly this year, and economic vulnerability remains high.
“Our goal is not to halt progress but to ensure that the graduation is sustainable and economically transformative,” Dhakal explained. “While there is liquidity in banks, the will for private investment remains weak. In such a context, a hurried graduation could create obstacles.”
He added that the demand from Nepal’s private sector is relevant, noting that Bangladesh, another LDC, has also requested a three-year extension. Highlighting the challenges faced by Small and Medium Enterprises (SMEs), Dhakal mentioned that approximately 300,000 agro-based industries could be adversely affected by rising costs and the loss of preferential treatment in European markets.
On the occasion, the newly appointed UN Resident Coordinator, Lila Pieters Yahia, stated that the United Nations is always positive toward a strong partnership with Nepal’s private sector. Regarding the extension of the 2026 graduation timeline, she suggested that a conclusion could be reached through discussions involving the UN, World Bank, International Monetary Fund (IMF), Government of Nepal and private sector.
“We want to see Nepal graduate. However, the perspectives of key stakeholders are vital for this. Therefore, let there be a discussion among all stakeholders,” she said.
Resident Coordinator Yahia emphasized that since Nepal possesses a young workforce and potential in various sectors, predictable policies and trust in national institutions are essential for policy stability and economic development. She suggested formulating strategies focused on import substitution and export promotion. Additionally, she expressed interest in the upcoming elections and the subsequent economic landscape.
FNCCI President Dhakal informed her that the FNCCI has previously taken initiatives to amend laws to ensure policy stability and an investment-friendly environment. He also shared that for the upcoming elections, the Federation has urged all political parties to keep the economy at the center and ensure that economic priorities remain stable beyond political cycles.
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