Nepal | July 07, 2020

Govt wants Nepal to remain LDC

To request UN not to upgrade it to developing country

Rewati Sapkota
Share Now:

Country needs concessional foreign aid, routes for trade. We’ve to boost per capita income

Kathmandu February 28

The government has decided to request the United Nations Committee for Development Policy not to upgrade Nepal from least developed country to the league of developing nations until 2021. A Cabinet meeting today decided to write to the UNCDP stating that the country is not prepared for the graduation and another triennial review should be carried out in 2021.

“We have endorsed a proposal that Nepal should not be graduated to a developing country, as it has not met the criteria of per capita income,” Finance Minister Yubaraj Khatiwada said after the meeting.

Nepal, however, has met two — human asset index and economic vulnerability index — of the three criteria taken into account for upgrading a country.

As per the criteria set by the UN, a country graduating to the league of developing nations should have per capita income of $ 1,245, HAI of 66 and EVI below 32. According to the data of fiscal year 2016-17, Nepal’s HAI and EVI stand at 68.7 and 26, respectively, and the PCI at $ 865.

Nepal aims to graduate to the league of developing nations by 2022. However, the Economic and Social Council review has stated that technically Nepal is set to graduate to the league of developing countries, as there has been remarkable performance in two major indices.

“We’ll first boost our PCI to the required level by the 2021 review. Then we’ll be ready to graduate to a developing country,” Khatiwada told mediapersons. “But it’s too early now.”

The government decided to delay the graduation, as the country still needs concessional foreign aid and routes for trade, Khatiwada told THT, adding, “We have to boost our PCI swiftly.”

Graduation to a developing country results in removal of export preferences in developed markets after a certain year, which will hit the private sector that has been seeking sustainability of achievements in terms of HAI and EVI.

The developed countries have committed to providing 0.75 per cent of their gross national income as official development assistance and the LDCs are major beneficiaries of the ODA.

The government has said it is not the right time for the country to graduate to the league of developing nations, as it has just emerged from decade-long armed conflict, devastating earthquakes and blockade.

Following discussions with a wide range of stakeholders, including the private sector, academicians, think tanks, civil society organisations and non-government organisations, the National Planning Commission had recommended the Office of the Prime Minister and Council of Ministers that Nepal should not hasten to graduate to the league of developing nations.


A version of this article appears in print on March 01, 2018 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Nepal Covid-19 Update: 180 new cases, 264 recoveries, one death recorded on Monday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 255,728 tests through Polymerase Chain Reaction (PCR) method and 311,724 Rapid Diagn Read More...

Kathmandu valley

Highest single-day spike recorded in Kathmandu valley on Monday, tally jumps to 237

KATHMANDU: The valley's daily-cases witnessed a relatively big leap on Monday, as 54 Covid-19 cases were detected across Kathmandu, Lalitpur and Bhaktapur. This is the highest single-day spike in coronavirus infection cases recorded in the Kathmandu valley. The case count in the three cities has Read More...

Sushant Singh Rajput's last film Dil Bechara's trailer released Monday

KATHMANDU: The trailer for the last movie -- Dil Bechara -- of late Indian actor Sushant Singh Rajput has been released posthumously. Shooting of the movie -- based on the 2012 English-language novel 'The Fault in Our Stars' by John Green -- had been completed and was scheduled to be originally r Read More...

Ronaldo scores from free kick, Buffon breaks record in Juve win

TURIN: Cristiano Ronaldo finally scored from a free kick for Juventus and goalkeeper Gianluigi Buffon made a record 648th Serie A appearance as the league leaders beat their smaller neighbours Torino 4-1 in the Derby della Mole on Saturday. Ronaldo curled his shot over the wall and into th Read More...

Adams ends long wait for Saints goal with winner against City

LONDON: Southampton's Che Adams scored his first Saints goal, a year after joining the club, with a stunning long-range strike as they beat Manchester City 1-0 to condemn Pep Guardiola's side to a third successive away defeat in the Premier League. Adams signed for Southampton from Birming Read More...

Liverpool maintain 100 percent home record with 2-0 win over Villa

LONDON: Liverpool made it 17 wins out of 17 at Anfield after goals by Sadio Mane and Curtis Jones handed the champions a 2-0 win over Aston Villa in the Premier League on Sunday which pushed Dean Smith's side deeper into trouble. Following their 4-0 mauling at the hands of Manchester City on Thu Read More...

K-drama star Woo Do-hwan enlists, Monarch co-star Lee Min-ho posts photo of them with Woo's shaved head

KATHMANDU: K-drama star Woo Do-hwan enlisted in the army on July 6. He joined the 15th Infantry Division at the new recruit training centre in Hwacheon, Gangwon Province. Soompi reports that Woo waved goodbye to fans and press outside on his way to the centre. Woo's label Keyeast also released Read More...


Police can apprehend anyone without mask in public places in Nepal

KATHMANDU: Authorities will now apprehend anyone that steps out in public without a mask. The Home Ministry issued a directive on Monday according to which law enforcement authorities can nab anyone who goes out of house without a mask. Going out of house sans mask will be treated as an offense a Read More...