Nepal outlines six strategic plans to tackle post-LDC graduation challenges: PM Oli

KATHMANDU: In a bid to navigate the multifaceted challenges emerging after its graduation from the Least Developed Country (LDC) status, the Government of Nepal has unveiled six comprehensive strategies aimed at ensuring a smooth and sustainable transition. Prime Minister KP Sharma Oli informed the National Assembly that these strategies are already in the implementation phase.

Addressing queries during a discussion in the National Assembly regarding the post-graduation scenario, Prime Minister Oli stated, “We have already operationalized six strategic pillars through a structured mechanism involving various levels of government. A High-Level Steering Committee under my chairmanship, an Implementation and Coordination Committee led by the Vice-Chair of the National Planning Commission, a Federal Monitoring Committee chaired by the Chief Secretary, and Provincial Implementation Committees under the Chief Ministers have all been formed to drive these strategies forward.”

According to Oli, a major focus of the post-LDC transition process is legal reform. “We are in the process of repealing outdated laws, amending existing regulations, and introducing new legislation to support Nepal’s new international positioning,” he said.

He further highlighted Nepal’s efforts in enhancing foreign diplomacy to strengthen international relations and boost the implementation of international treaties and agreements. “We are also leveraging bilateral and multilateral partnerships to mobilize foreign aid, attract investment, and access concessional loans that align with our graduation trajectory,” Oli added.

Prime Minister Oli emphasized that a revision of public procurement laws and construction-related policies is underway. These reforms aim to increase efficiency and transparency in governance and infrastructure development.

The government has also placed a strong emphasis on capacity building, both at individual and institutional levels, and on improving infrastructure and connectivity. “We are working to transform Nepal from a landlocked to a land-linked country,” Oli asserted.

Another key component of the strategy is to strengthen value chain development through multinational companies, which will help promote exports and support domestic industries. Oli said the government is also taking into account the potential impacts on the private sector, labor market reforms, and trade competitiveness as Nepal exits the LDC group.

“We are committed to making Nepal’s structural transformation sustainable by securing support from all stakeholders,” Prime Minister Oli told the Assembly, adding that the government is taking a coordinated approach to implement the recommendations and action points proposed by the National Assembly’s Committee on Development, Economic Affairs, and Good Governance.

The announcement comes as Nepal prepares to formally graduate from LDC status, a significant milestone that brings both opportunities and risks. Graduation will lead to a loss of preferential trade benefits, concessional loans, and certain development grants—challenges that the government is aiming to offset through strategic national planning and diplomatic engagement.

This development has direct implications for Nepal’s international trade, investment environment, employment generation, and economic governance, which are critical sectors in the post-LDC context. Experts have warned that unless Nepal ensures preparedness in legal, economic, and diplomatic domains, the graduation could potentially strain its fragile economic growth trajectory.

The six strategies are being seen as a roadmap to recalibrate Nepal’s development model and improve its global standing while ensuring that the benefits of LDC graduation are inclusive and resilient in the long run.