Nepal is set to graduate from LDC to a middle-income developing nation by November 2026, a milestone in its development. The development has come after Nepal’s National Assembly through its Sustainable Development Sub-Committee endorsed a detailed study report on the development journey in the country.
After extensive consultations with the relevant Government ministries, private sector players and stakeholders, the report was presented to the Committee on Development, Economic Affairs and Good Governance. The committee’s president, Kamala Devi Pant, praised the work of the subcommittee, saying the report would “give a great direction to the government” to achieve that goal.
Dr Anjan Shakya led a subcommittee that interacted with bodies like the National Planning Commission, the Finance Ministry and business bodies including Nepal Chamber of Commerce. In fact, the visit was intended to take stock of Nepal’s performance so far news and that country’s ability to fulfill the international parameters needed for it to be able to climb out of the LDC heap.
For a nation to be eligible, it must meet criteria under a certain set of categories: the Human Assets Index (which considers health and education), Gross National Income and the Economic and Environmental Vulnerability Index. Nepal has already met two of these criteria i.e. Human Assets Index and Environmental Vulnerability Index, according to the UN assessments conducted in 2015, 2018 and 2021. But the income criteria can be tricky to meet.
Nepal has been building the foundation for this since 2010 in national and regional-level strategic plans, budgets and programs. With the new report in hand, the government is now able to see what more it has to do before it can expect to be granted the upgrade not later than 2026.
This change is a milestone for Nepal and comes after years of effort and collaboration across the ideological spectrum. It also represents hope for a better economy and standard of living for its people.
