Nepal will be upgraded from a least developed country to a developing country in the coming 2083 Mangsir, i.e. November 2026.
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Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, has urged the government to take the initiative to extend the deadline for at least three years along with a reassessment of Nepal's LDC (Least Developed Country) status.
Speaking at an interaction program on Nepal's upgrading to a developing country organized at the National Planning Commission on Monday, Dhakal urged the government to take the initiative to extend the time.
A year later, in the upcoming 2083 Mangsir i.e. November 2026, Nepal will be upgraded from a least developed country to a developing country. He said that although it is a matter of joy that Nepal has been upgraded from the list of poor countries, policymakers and planners should be especially sensitive about the impact on Nepal after the upgrade.
Chairman Dhakal said that Bangladesh has already requested the United Nations to re-evaluate and that it should be postponed in time after the latest movement in Nepal, which is in a similar situation, and said that sensitivity should be given to this issue.
'I am confident that the government will take this sensitive issue seriously. I urge the government not to take any decision that will seriously affect the production and employment of the private sector by forcibly getting rich in the current situation,' he said.
Dhakal reminded that Nepal, which is becoming richer without actually increasing its income, has many challenges and that the decision to upgrade in 2021 was made without reaching Nepal's per capita income.
'Now, the average income limit has been reached. There is no reason for us to be happy about this, because the recent protests, low morale of businessmen, low demand, etc. have added risks to the economy,' he said.
Chairman Dhakal was of the opinion that the main impact of this decision would be on the private sector and that there would be a risk of job loss, especially for small entrepreneurs and women. 'It is necessary to listen to those who are affected,' he said. 'That is why I am confident that the government will be serious about this as the Federation has been repeatedly urging the private sector to address its problems.'
Chairman Dhakal also said that the impact of the strict conditions on the rules of origin under SAFTA had not been assessed in previous studies, and the impact of the two-tier production cycle in ready-made garments had not been looked at in detail.
He said that the problem is easily ignored because Europe offers GSP or GSP Plus and that Nepal should ratify one of the many International Labor Organization Conventions, Convention-87, for GSP. He pointed out that if the convention is ratified, it will have a negative impact on Nepal's labor relations.
