According to CDP, Nepal's graduation would be effective in 2026 after the preparatory period of five years ends.
KATHMANDU, FEBRUARY 27
United Nations Committee for Development Policy (CDP) has recommended for Nepal's graduation from the Least Developed Country (LDC) category with preparatory period of five years.
In a press release issued on February 26, New York-based Permanent Mission of Nepal to the United Nations mentioned that Nepal has met the criteria for graduation for three consecutive reviews.
A country is eligible for graduation based on the three indices -- GNI per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI) -- among which Nepal has met the latter two, satisfying the criteria for eligibility.
This graduation of Nepal would be effective in 2026 after the preparatory period ends. Due to the circumstances of COVID-19 pandemic, the previous three years of normal preparatory period was expanded to five years.
In this period, Nepal will prepare itself for a smooth transition to offset the loss of support measures exclusive to the LDCs.
CDP had held its triennial review from February 22 to 26, 2021, in which it provided this recommendation for Nepal, Bangladesh and Lao People's Democratic Republic as well.
Nepal had previously met the graduation criteria for the first time in 2015. However, given the circumstances of the country's economy which was greatly affected by the 2015 earthquake, Government of Nepal, then, requested to defer the graduation. Hence, CDP in its 2018 triennial review recommended to do so.
Furthermore, the present recommendation needs to be endorsed by the United Nations Economic and Social Council (ECOSOC) which shall then be 'noted' by the UN General Assembly later this year.
The release stated that Nepal will continue to have access to all LDC-specific support measures until 2026.