Deputy Prime Minister and Finance Minister Bishnu Paudel on Thursday, June 19, emphasized the importance of integrating Nepal’s 16th Periodic Plan with sectoral policies to ensure that the country’s graduation from Least Developed Country (LDC) status is both sustainable and transformative.
Speaking at a national workshop, organized by the National Planning Commission (NPC), on the challenges and plans regarding the upcoming graduation, Paudel called on the NPC and line ministries to develop and implement strategic plans and programs that can leverage the opportunities emerging from the shift to Developing Country status.
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Nepal, alongside Bangladesh and the Lao People’s Democratic Republic, is scheduled to graduate from the UN’s LDC category in late 2026.
The transition will bring new obligations in areas such as international trade, development financing, and the implementation of Sustainable Development Goals (SDGs). It will also require enhanced institutional and technical capacity in both public and private sectors, particularly in managing climate-induced disasters.
To meet these demands, Paudel underscored the need for stronger coordination among all levels of government—federal, provincial, and local—as well as with development partners.
Highlighting the critical role of financing, the Deputy Prime Minister said the government has introduced the Alternative Development Finance Mobilisation Bill to address funding gaps, particularly in the face of structural economic challenges and shifting patterns in foreign investment and aid flows.
He also noted that the Foreign Assistance Mobilization Policy, 2082, has been issued to make external aid more effective, and that several investment-related laws have been amended to improve Nepal’s overall investment climate.
Paudel stressed that bolstering the export sector is essential to achieving sustainable trade in the post-graduation period. At the same time, he acknowledged the mounting difficulty of shielding citizens and the economy from the impacts of climate change, calling for continued international support.
“Nepal will need technical and financial assistance from development partners and the global community to bridge capacity gaps and meet post-graduation targets,” he said.
NPC Vice-Chairperson Prof. Dr. Shiva Raj Adhikari echoed these sentiments, emphasizing that the Commission is working to enhance collaboration among the public and private sectors, as well as with development partners, to drive economic transformation and structural reform.
The two-day workshop would be focused on key issues such as macroeconomic stability, financial resilience, climate change adaptation, disaster risk management, social inclusion, and governance integrity—all critical for ensuring a smooth and sustainable transition beyond LDC status.
