Nepal must show courage to graduate from LDC, say experts

Himal Press 05 Feb 2026
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Nepal must show courage to graduate from LDC, say experts

KATHMANDU: Experts have said that Nepal must now have the courage to move beyond the LDC category.

Speaking at a discussion organized by the Centre for Diplomacy and Development (CDD) in Kathmandu on Thursday to mark its eighth anniversary, former Under-Secretary-General of the United Nations and Nepal’s former Permanent Representative to the United Nations, Gyan Chandra Acharya, said being an LDC is not a permanent state of development, but a temporary phase. “Concessions obtained by constantly portraying the country as weak will not help build national self-confidence. The criteria set by the United Nations are not the result of political pressure but an assessment of a country’s preparedness and potential,” Acharya said. “If we ourselves continue to see ourselves as weak, the world will see us through the same lens.”

Acharya added that graduating from LDC status does not mean losing facilities; it means accepting responsibility.

Stating that there will be no LDCs in Asia by 2032, he said Nepal, by delaying graduation, risks not only identifying itself as the sole LDC in Asia but also losing its self-respect.

Acharya said the government should formulate policies not out of fear of graduation, but with a vision of what to do after graduation. “The habit of remaining at the bottom is more dangerous than the fear of not being able to move upward,” he added.

CDD Chairperson and former ambassador Mohan Krishna Shrestha said Nepal has been held back by a lack of vision and self-confidence at the leadership level, despite having the capacity to graduate from the LDC status. “The problem is not of resources, but of mindset. We must move forward with a positive outlook,” he added.

Representing the private sector, President of the Confederation of Nepalese Industries (CNI), Birendra Raj Pandey, said an economy dependent on LDC concessions cannot be sustained in the long run. “However, the graduation will have little meaning without a clear strategy on what Nepal produces, what it exports, and how it competes,” he added.

Vice-Chairperson of the National Planning Commission (NPC), Dr Prakash Kumar Shrestha, said that the decision to graduate from LDC status should be based not on emotion but on a realistic assessment of capacity. “Our challenges have been compounded by a lack of positive thinking within the bureaucracy, institutional weaknesses, and the limited capacity of the private sector,” he said. “Seeking additional studies, preparation, and necessary time before moving forward will help safeguard our interests.”

CDD Vice Chairperson Mitra Bandhu Paudel said that merely changing economic indicators would not be sufficient unless there is a transformation in leadership culture, from policy-making to administration and the private sector.

Published On: 05 Feb 2026

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