In 1971, Nepal was designated as one of the least developed countries (LDCs) by the United Nations (UN). As of December 2023, there are 45 UN-listed LDCs, including Nepal, entitled to benefits including preferential market access, aid, and technical assistance.[i] Nepal is expected to graduate from its LDC status in November 2026. This transition from the LDC status will be a crucial milestone in Nepal’s developmental endeavour. It will mark Nepal’s transition from relying on international support to becoming self-reliant. However, concerns arise as this transition may lead to the loss of privileges, such as access to international grants, concessional loans, reduced trade tariffs, and technical assistance. In this context, this paper assesses Nepal’s preparedness for the forthcoming LDC graduation and its potential ramifications.
The Process of LDC Graduation
The list of LDCs is reviewed every three years by the Committee for Development Policy (CDP), which reports to the Economic and Social Council (ECOSOC) of the UN. The CDP applies three criteria for graduation from the LDC status: an income criterion, a human assets index (HAI), and an economic and environmental vulnerability index (EVI).[ii] The income criterion for graduation is a gross national income (GNI) per capita of US$1,306 or above.[iii] The HAI and EVI have specific indicators[iv] and thresholds. HAI should be 66 or above, and EVI should be 32 or below for graduation.[v] However, countries that meet two of the three criteria in two consecutive triennial reviews become eligible for graduation from the category.[vi]
Since the 1950s, Nepal has been following a planned development strategy for economic growth and development. The first Five-Year Plan (1956–1961) focused on economic and social progress, agricultural development, and industrialisation.[vii] Subsequent plans aimed to boost food production, expand industries, and improve transportation infrastructure. It was only in the 12th Three-Year Plan (2010/11–2012/13) that Nepal set out a vision to transition from an LDC to a developing country by 2030.[viii] However, upon further consideration, in 2013, in Nepal’s 13th Three-Year Plan (2013/14–2015/16), Nepal committed to graduating from the LDC category by 2022.[ix]
In 2015, for the first time, the HAI and the EVI of Nepal surpassed the LDC graduation thresholds in the triennial review by CDP. In the subsequent triennial review of 2018, Nepal became eligible to graduate; however, the recovery process from the 2015 earthquake, low GNI, and other challenges led the government to not pursue the graduation process in 2018.[x] Consequently, the CDP deferred its decision on the recommendation for graduation, considering Nepal’s concerns about the sustainability of Nepal’s development progress.[xi]
Further, in 2021, the next triennial review by CDP showed further improvements in both HAI and EVI, and Nepal appeared to be set to graduate. However, in light of the COVID-19 pandemic circumstances, Nepal was granted an extended preparatory period of five years.[xii] Hence, Nepal will be graduating from an LDC status on 24 November 2026. It will be the first country to achieve graduation without meeting the GNI per capita income criterion.[xiii]
The report of the recent triennial review of 2024 states that Nepal is advancing steadily towards sustainable graduation. It highlights that Nepal has effectively mitigated the adverse effects of the COVID-19 pandemic to some extent and has made significant progress in preparing for a smooth transition after the extended five-year preparatory period.[xiv] The CDP concurred to not further extend any additional preparatory period for Nepal beyond 2026. According to the CDP’s 26th Plenary Session held in March 2024, Nepal’s GNI per capita is nearing the graduation threshold in 2024. Between 2020 and 2024, the GNI per capita grew from US$1,031 in 2020 to US$1,300 in 2024.[xv] The HAI also showed steady growth, from 72.3 in 2020 to 76.3 in 2024, while the EVI remained almost constant, from 28.2 in 2020 to 29.6 in 2024.[xvi] Hence, Nepal meets two of the three graduation criteria since the last four subsequent triennial reviews, indicating that it qualifies for the graduation threshold.
Nepal’s Preparations for Graduation
Nepal has been preparing itself for the upcoming graduation at diverse levels to sustain the process and post-graduation sustainability. These encompass domestic-level policies and strategies as well as Nepal’s engagement with its bilateral and multilateral development partners.
Domestic-level Policies and Strategies
The proposed LDC graduation of Nepal signifies a significant milestone in Nepal’s development journey, necessitating a well-planned transition strategy to ensure sustained and meaningful transformation. In this context, the National Planning Commission of Nepal formulated the Nepal LDC Graduation Smooth Transition Strategy (STS) in February 2024.[xvii] The STS outlines the transition plan and highlights the opportunities and challenges that may arise for Nepal upon its graduation from the LDC category.[xviii] STS’s focus remained on six pivotal areas encompassing macroeconomic stability, trade, and investment; economic transformation; productive capacity; climate change and disaster risk management; and social inclusion.[xix] It also aims to bring together the national, provincial, and local-level government bodies along with its multilateral and bilateral development allies, the private sector, civil society, cooperatives, and South-South partners to address the crucial challenges arising from the graduation.[xx]
The STS recommends the establishment of four committees at both federal and provincial levels to ensure efficient implementation. In this context, a high-level LDC Graduation Steering Committee with the Prime Minister as its chair has been formed to oversee and drive the comprehensive implementation of the strategy. The second committee, known as the LDC Graduation Implementation and Coordination Committee, is primarily responsible for fostering coordination among various policies, including fiscal, monetary, exchange rate, trade, industrial, investment, and development cooperation mobilisation policies. This coordination aims to stimulate economic growth and facilitate Nepal’s transition into a developing country. The third committee, the LDC Graduation Monitoring and Evaluation Committee, is expected to be formed at the federal level. This committee will collaborate with relevant ministers and agencies to monitor and evaluate the implementation of the strategy. Finally, the Province-Level LDC Graduation Implementation Committee is set to be established in all provinces. This committee will ensure the implementation of the STS by integrating the strategy into the policies and programmes of the provinces.[xxi]
Nepal has made other efforts to prepare for graduation, reflected in its’ consecutive national development plans. The recently framed 16th Five-Year Plan (2024/25–2029/30) focuses on promoting good governance, social justice, and economic prosperity. It emphasises managing resources, improving enterprise capacity, and enhancing investment expertise.[xxii] It also emphasises an irreversible and sustainable graduation to become a high-middle-income country by 2043. Nepal’s aspiration to evolve into a high-middle-income country after LDC graduation encompasses the development of internal resources and sustainable progress.
The country’s graduation process also necessitates international developmental cooperation. In this regard, Nepal formulated the International Development Cooperation Policy (IDCP) in 2019. The IDCP aims to mobilise international development assistance to support the country’s graduation from the LDC status, achieve middle-income country status, and attain the Sustainable Development Goals (SDGs) by 2030. It also emphasises the reduction of aid dependency and cooperation modalities aligned with the co-financing of projects or technical assistance programmes.[xxiii]
Moving ahead, Nepal has adopted a new Nepal Trade Integration Strategy (NTIS) 2023, replacing the NTIS 2016.[xxiv] The NTIS 2023 is expected to be implemented by 2028. Its goal is to facilitate the implementation of policies and strategies aimed at improving trade infrastructure, enhancing investment conditions, and increasing productivity in the industrial and trade sectors. Additionally, it emphasises the importance of fostering communication with various stakeholders at provincial and local levels. The NTIS 2023 has broadened the range of Nepal’s potential export products and services to 32, up from 12 in the 2016 NTIS.[xxv],[xxvi] The lentils, jute, vegetables, fruits, spices, and coffee are the new products featured in the agro category of NTIS 2023.[xxvii] Additionally, the forest sector category showcases handmade lokta paper, rosin, turpentine, fragrant oil, and textiles of long fibre. The NTIS 2023 includes electricity as a service export item.[xxviii]
At the Bilateral, Regional, and Multilateral levels
At the bilateral level, Nepal has been engaging with its major development partners—India, China, Japan, the United States, Germany, the United Kingdom, Denmark, and other European and Arab countries—to attract more foreign investment. Recently, the 3rd ‘Nepal Investment Summit’ was organised in April 2024 with an aim to promote the country as an attractive investment destination.[xxix] Besides, Nepal has been engaging with its neighbours, India and Bangladesh, to explore additional routes and modes of transportation for overseas trade. It is improving its roads, which take its exports from Kathmandu in Nepal to Kolkata and Vishakhapatnam Ports in India. Besides, Nepal has been developing railway infrastructure under Indian assistance. Further, it has been actively working to ensure the full operationalisation of the two newly built international airports at Bhairahwa and Pokhara.
Meanwhile, Nepal is also bolstering its connectivity in the South Asian region. It is currently engaged in expanding its multilateral and subregional interactions, such as the BBIN road and rail initiatives. Additionally, Nepal is in the advanced stages of negotiating a trilateral power trade agreement with Bangladesh and India. Once finalised, this agreement is expected to enable Nepal to address a significant portion of its huge trade deficit.
At the multilateral level, Nepal has been consulting with international intergovernmental organisations such as the UN to get support to create more employment opportunities, boost productivity, and productive capacity[xxx] and with the World Trade Organisation (WTO) to seek an extension for trade-related assistance, concessions, and market access.[xxxi] Further, it is also reaching out to international financial institutions such as, the World Bank (WB), the International Monetary Fund (IMF), and the Asian Development Bank (ADB). Nepal seeks policy advice and technical assistance from the ADB, WB, and IMF. Additionally, it also seeks support for green financing, climate change and disaster risk mitigation, and infrastructure development.
Implications of LDC Graduation
Nepal’s economy is heavily reliant on remittances, aid, trade, and investment. Upon Nepal’s graduation from LDC status, several key aspects of its bilateral aid, development cooperation, foreign investment, and international trade dynamics are expected to evolve. There is an ongoing discourse within media and academia related to the withdrawal of the benefits and privileges Nepal enjoys as an LDC. The potential graduation from LDC status is expected to significantly impact Nepal’s already substantial trade deficit with its major trading partners. Speculation exists that Nepal may experience a further exacerbation of its trade deficit, as most countries may cease to grant Nepal lower tariffs on imported goods. Further, Nepal no longer will be able to mobilise foreign aid, more specifically foreign grants and highly concessional loans.
Trade-related Concerns
Nepal’s trade sector is a significant contributor to its economy, accounting for approximately 49% of the GDP. However, the country experiences a substantial trade deficit. Various studies have raised concerns that after LDC graduation, Nepal’s exports may be affected, potentially leading to a decline in trade and further widening of the trade deficit.
Primarily, Nepal will not be able to benefit from LDC-specific schemes such as the Generalised System of Preferences (GSP) by the European Union (EU).[xxxii] GSP provides an LDC to get duty-free, quota-free access to the EU market for all products except arms and ammunition under the Everything But Arms (EBA) arrangement. Additionally, Nepal is likely to encounter a highly competitive market for its tradable goods, as varying degrees of tariff increases will impact different sectors and products, such as textiles and clothing, leather and footwear, etc. Small and medium enterprises, which constitute a substantial portion of Nepal’s exports to preference-granting countries, are expected to be disproportionately affected.[xxxiii]
Studies indicate that Nepal’s merchandise exports could potentially decline by 4.3% due to increased tariffs after LDC graduation. [xxxiv] The clothing and textiles sector is anticipated to be the most impacted.[xxxv] Losses will mostly occur in exports to China, the EU (mainly in Germany and France), and Turkey.[xxxvi],[xxxvii] Furthermore, strict ‘rules of origin’,[xxxviii] in preference-granting countries such as the EU, Turkey, the United Kingdom, Canada, Australia, and Russia will also affect certain products like apparel and made-up textile products.[xxxix] It will potentially hinder exports despite preferential tariff access under various schemes entitled to an LDC.
Secondly, Nepal benefits from preferential access to the United States market for certain items under the US-Nepal Trade Preferences Act 2015. Specifically products, such as shawls, scarves, mufflers, mantillas, veils, knitted or crocheted hats, and other headgear, as well as cases and containers with an outer surface of plastic or textiles, enjoy tariff-free access under this act, with substantial preference utilisation. However, after graduation, Nepal will not be able to take advantage of this duty-free scheme.[xl]
Thirdly, there are other trade-related policy implications of the proposed graduation of Nepal. Upon graduation, Nepal will no longer benefit from specific exemptions and flexibilities enjoyed by LDC members of the WTO, which will affect its trade policy autonomy and obligations.[xli] Some studies predict that Nepal may encounter difficulties in maintaining existing export subsidies, which will be subject to WTO rules and scrutiny post-graduation. In this regard, Nepal has also been active in discussions with the WTO[xlii] along with other LDCs to provide extended time periods to allow graduated LDCs to continue to benefit from LDC-specific special and differential treatment provisions in WTO agreements and trade preferences provided to the LDCs. The General Council adopted a decision in October 2023 encouraging preference-granting members to provide a smooth transition period before withdrawing duty-free and quota-free market access for LDCs after graduation.[xliii] At the 13th Ministerial Conference in February 2024, the WTO members agreed that LDC graduates would continue to access LDC-specific technical assistance for a three-year transition period after graduation, among other things.[xliv]
It is important to note that Nepal’s primary export destination is India, constituting over 60% of Nepal’s total exports. Nepal has a bilateral trade agreement with India that offers duty-free and quota-free access to most Nepalese products in the Indian market. Consequently, the LDC graduation is not expected to adversely affect its exports to India.
Moreover, Nepal’s ability to secure and maintain access to preferential trade schemes will be crucial. Strategic policy adjustments and international cooperation post-graduation will be essential to mitigate potential adverse impacts and craft a resilient trade policy for the future.
Foreign Aid and Assistance Related Concerns
Bilateral Aid
After opening its doors to the world in the late 1940s, Nepal began receiving foreign developmental aid. In its initial development plan period, around 70 per cent of total government expenditure was expected to come from foreign aid. Following the onset of economic liberalisation in the 1990s, Nepal’s reliance on aid started to decrease gradually. However, foreign aid still constitutes a significant portion of Nepal’s economy. Nepal receives aid in the forms of grants, loans, and technical assistance from its bilateral partners such as India, China, Japan, and Germany, as well as from multilateral development partners such as the UN, ADB, and WB.
On bilateral aid and development cooperation, most major bilateral aid sources to Nepal consider geopolitical factors rather than LDC status alone in aid provision. While Japan’s most concessional loans are tied to LDC status and low-income status, Nepal’s transition from LDC status means these concessional terms will be phasing out. Similarly, South Korea’s loans will become less concessional post-graduation, as several studies indicate. However, during her visit to Nepal in May 2024, Kamikawa Yoko, the Foreign Minister of Japan, assured that despite the changing geopolitics of Asia, Japanese support for Nepal will continue even after its graduation from an LDC.[xlv]
Further, Germany has decided to terminate its bilateral ODA with Nepal in 2025. In light of this, Nepal seeks to counterbalance this reduction by capitalising on increased aid from the EU, an already significant development partner.[xlvi] The EU is committed to amplifying its assistance to support Nepal’s transition and enhance its productive capacity, in accordance with the SDGs and the challenges associated with graduation.
Aid from India and China does not follow the LDC criteria. However, the conceptual ambiguity surrounding which financial flows from China should be classified as aid, along with the lack of transparency, has contributed to a limited understanding of China’s aid system.[xlvii] Most importantly, after signing China’s ambitious Belt and Road Initiative (BRI) agreement in 2017, Nepal has been cautious about Beijing’s push to accept loans to projects under BRI.
Multilateral Aid
Firstly, at the multilateral financial institution level, such as the WB and the ADB, Nepal presently benefits from concessional loans based on its GNI per capita, a status unaffected by its LDC designation. As the LDC graduation implies rising trends in per capita income, the graduation is often accompanied by a shift in the WB’s income category to lower middle-income from low-income, which has been the case for Nepal.[xlviii] Upon graduation, Nepal may experience a transition to blended credit terms, which are less concessional loans, contingent on economic criteria.[xlix] This will also lead to a shorter repayment period. Furthermore, another impact of LDC graduation on development cooperation for Nepal will be the loss of access to funding that is specifically allocated for LDCs.[l]
The ADB assesses the eligibility of developing member countries to provide concessional assistance by evaluating countries’ creditworthiness and per capita income. At present, Nepal comes under the Group A (Concessional Assistance-only) category of the ADB and is eligible for Asian Development Fund grants.[li] Following graduation, Nepal’s classification may shift to less concessional terms (Group B), which may potentially impact loan maturity, grace periods, and interest rates.
Secondly, at international development institutions such as the UN and specialised agencies like the UN Development Programme (UNDP) and United Nations Children’s Fund (UNICEF), core resources dedicated to LDCs are typically allocated as a group, which may have implications for funding post-graduation.[lii] However, the UNDP is mandated to assist graduating countries in their transition, mitigating the immediate impact of funding cuts.
Post-graduation, at the United Nations Framework Convention on Climate Change(UNFCCC), support from the LDC Fund will cease, although ongoing projects will continue until completion. The UN Capital Development Fund (UNCDF) may provide funding for programmes for up to three years after graduation based on pre-graduation conditions. Furthermore, if development advances as anticipated, financial support for the subsequent two years can be awarded through a cost-sharing arrangement of 50/50 with the government or a third party. Nevertheless, Nepal will remain eligible for other climate finance mechanisms, such as the Global Environment Facility Trust Fund and the Adaptation Fund.[liii]
Assessment
Experts and scholars have noted that post-graduation, there exist opportunities for Nepal to enhance its credit rating and global competitiveness within the concessional sector, as well as to attract greater foreign investment. This necessitates structural and substantive changes in development strategies aimed at bolstering the purchasing power of a substantial portion of the populace. It is imperative for the nation to strategically engage with international development partners and employ development diplomacy to ensure sustainable development post-graduation.
Nepal has bilateral trade agreements with some of its largest bilateral trading partners, notably India, and has secured transitional periods and specific exemptions, including temporary waivers from the EU. However, after LDC graduation, the overall outlook suggests an increase in trade barriers in many key export markets. Consequently, Nepal needs to initiate further bilateral trade agreements with its potential export markets. Further, there is a need for strategic modifications in trade policies, heightened efforts to enhance competitiveness, and support for affected sectors such as agriculture and manufacturing. Likewise, Nepal must establish the ideal environment to draw substantial foreign investment into its promising sectors, including tourism, hydropower, and agriculture.
Conclusion
At its core, Nepal’s LDC graduation represents a critical juncture with far-reaching implications for its trade, foreign aid, and development cooperation. Adapting strategically and engaging proactively with international development partners will be crucial to mitigate potential adverse effects and capitalise on emerging opportunities in the global economy.
However, it is also important to note that Nepal has undergone significant transitional phases over the last three decades, encompassing shifts from the Panchayat system to multiparty democracy, civil wars to a republic, peace processes, and constitution-making, ultimately culminating in a federalist system. During this period, persistent political instability has contributed to a corresponding policy instability in Nepal, which has also contributed to delays in the developmental endeavours of the country. It will be crucial to monitor how Nepal will be navigating the challenges following its scheduled graduation and how effectively it will pursue its development diplomacy with its major development partners and mobilise support. This pivotal transition phase will significantly influence Nepal’s endeavours to achieve self-reliance and maintain its status as a developing country post-graduation.
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*Subodh Chandra Bharti, Research Associate, Indian Council of World Affairs, New Delhi.
Disclaimer: Views expressed are personal.
Endnotes
[i] United Nations. “UN list of least developed countries," United Nations December 2023, https://unctad.org/topic/least-developed-countries/list (Accessed June 11, 2024).
[ii] United Nations. “LDC Identification Criteria & Indicators.” (n.d.), https://www.un.org/development/desa/dpad/least-developed-country-category/ldc-criteria.html, (Accessed June 24, 2024).
[iii] United Nations. “Graduation from the LDC category.” (n.d.), https://www.un.org/development/desa/dpad/least-developed-country-category/ldc-graduation.html, (Accessed June 24, 2024).
[iv] the HAI includes the Health index (Under-five mortality rate, Maternal mortality ratio and Prevalence of stunting) and the Education Index (Lower secondary education completion rate, Adult literacy rate and Gender parity index of lower secondary education completion). Whereas, EVI includes the Economic vulnerability index (Share of agriculture, forestry and fishing in GDP, Remoteness and landlockedness, Merchandise export and Instability of exports of goods and services concentration) and the Environmental vulnerability index (Share of population in low elevated coastal zones, Share of population living in drylands, Instability of agricultural production and Victims of disasters).
[v] ibid.
[vi] ibid.
[vii] Bharti, Subodh C.. “Economic Liberalisation and Shifts in Foreign Policy of Nepal.” PhD thesis, Jawaharlal Nehru University, 2023.
[viii] National Planning Commission. “Trivarshiya Yojna (Arthik Varsh 2067/78-2069/70)." Government of Nepal (Ashadh V.S. 2068).” https://npc.gov.np/images/category/TYP_2012.pdf (Accessed June 22, 2024).
[ix] National Planning Commission. “TerhonYojna (Arthik Varsh 2070/71-2072/73)." Government of Nepal (Ashadh V.S. 2071).” https://npc.gov.np/images/category/13th-Plan_nep.pdf (Accessed June 22, 2024).
[x] Pandey, Posh Raj, et al.. "Nepal’s graduation from the LDC category: Implications for international trade and development cooperation." South Asia Watch on Trade, Economics and Environment (SAWTEE), (September 2022), https://sawtee.org/publications/LDC_graduation_study_Sep_2022.pdf (Accessed June 17, 2024).
[xi] National Planning Commission. "Nepal LDC Graduation Smooth Transition Strategy." Government of Nepal (February 2024), https://npc.gov.np/images/category/240507114612Final%20LDC%20Graduation%20STS.pdf (Accessed June 17, 2024).
[xii] Ibid.
[xiii] Ibid.
[xiv] United Nations. “Committee for Development Policy Report on the twenty-sixth session (4–8 March 2024).” Economic and Social Council, Official Records, 2024 Supplement No. 13 E/2024/33, https://documents.un.org/doc/undoc/gen/n24/096/02/pdf/n2409602.pdf?token=CGYtMmLSQYMHXbA7rF&fe=true (Accessed June 24, 2024).
[xv] United Nations. “Committee for Development Policy 26th Plenary Session.” United Nations (4-8 March 2024). CDP2024/PLEN/6.d, https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/CDP-PL-2024-6-6-Nepal.pdf (Accessed June 24, 2024).
[xvi]Ibid.
[xvii] National Planning Commission. (2024).
[xviii] Ibid.
[xix] Ibid.
[xx] Ibid.
[xxi] Ibid.
[xxii] National Planning Commission. “Sorhaun Yojna (Arthik Varsh 2081/82-2085/86).” Government of Nepal, (Jyesth 2081), https://npc.gov.np/images/category/240607021743सोह्रौं%20योजना.pdf (Accessed June 17, 2024).
[xxiii] Ministry of Finance. "International Development Cooperation Policy, 2019." Government of Nepal, (2019), https://www.mof.gov.np/uploads/document/file/print_copy_IDCMP-2019_Eng-fullpage_20191107071739.pdf (Accessed June 13, 2024).
[xxiv] Ministry of Industry, Commerce and Supplies. “Nepal Trade Integration Strategy, 2080 (2079-80 to 2084-85).” Government of Nepal. (July 26, 2023), https://moics.gov.np/content/9289/9289-nepal-trade-integration-strate/ (Accessed June 13, 2024).
[xxv] South Asia Subregional Economic Cooperation (SASEC). "Nepal Trade Integration Strategy 2023 Expands Promising Export List to 32" (3 August 2023) https://www.sasec.asia/index.php?page=news&nid=1523&url=nits2023 (Accessed June 10, 2024).
[xxvi] Karki, Sagar Jung. "Understanding Nepal Trade Integration Strategy 2023." Nepal Economic Forum, (August 29, 2023), https://nepaleconomicforum.org/understanding-nepal-trade-integration-strategy-2023/ (Accessed June 12, 2024).
[xxvii] Parsain, Krishana. “New trade strategy lists 32 promising exports." The Kathmandu Post, (August 2, 2023), https://kathmandupost.com/money/2023/08/02/new-trade-strategy-lists-32-promising-exports (Accessed June 12, 2024).
[xxviii] South Asia Subregional Economic Cooperation (SASEC). "Nepal Trade Integration Strategy 2023 Expands Promising Export List to 32" (3 August 2023) https://www.sasec.asia/index.php?page=news&nid=1523&url=nits2023 (Accessed June 10, 2024).
[xxix] Bharti, Subodh C.. "Nepal Investment Summit’ and the Development Aspirations of Nepal." Indian Council of World Affairs, (May 3, 2024), /show_content.php?lang=1&level=3&ls_id=10817&lid=6881 (Accessed July 20, 2024).
[xxx] The Kathmandu Post. "Nepal seeks UN support in LDC graduation." The Kathmandu Post. January 18, 2024, https://kathmandupost.com/national/2024/01/18/nepal-seeks-un-support-in-ldc-graduation. Accessed July 12, 2024.
[xxxi] Kamal Dev Bhattarai. "LDC graduation: Nepal seeks extension of facilities." The Annapoorna Express. February 28, 2024. https://theannapurnaexpress.com/story/47741/#:~:text=Nepal%20welcomes%20the%20decision%20taken,and%20sustainable%20graduation%2C%20he%20said. Accessed July 12, 2024.
[xxxii] Ministry of Industry, Commerce and Supplies. “Nepal Trade Integration Strategy, 2080 (2079-80 to 2084-85).” Government of Nepal. (July 26, 2023), https://moics.gov.np/content/9289/9289-nepal-trade-integration-strate/ (Accessed June 13, 2024).
[xxxiii] Pandey, Posh Raj, et al.. 2022.
[xxxiv] International Trade Centre. "Nepal after LDC Graduation: New avenues for exports." International Trade Centre, Geneva, (April, 2022), https://intracen.org/file/nepalldcgraduationfinalwebpdf (Accessed June 23, 2024).
[xxxv] Ibid.
[xxxvi] World Trade Organisation and Enhanced Integrated Framework. "Trade impacts of LDC graduation: Insights from country-specific market access analyses." World Trade Organisation and Enhanced Integrated Framework, 2020, https://www.wto.org/english/res_e/booksp_e/trade_impacts_of_ldc_graduation_insights.pdf (Accessed June 29, 2024).
[xxxvii] Ministry of Industry, Commerce and Supplies. “Nepal Trade Integration Strategy, 2080 (2079-80 to 2084-85).” Government of Nepal. (July 26, 2023), https://moics.gov.np/content/9289/9289-nepal-trade-integration-strate/ (Accessed June 13, 2024).
[xxxviii] “Rules of origin” determine the product's source by defining where it was made. These criteria are essential for establishing the national origin of a product and are important because duties and restrictions often rely on import sources.
[xxxix] Pandey, Posh Raj, et al.. 2022.
[xl] UNDP (United Nations Development Programme). “Graduation from LDC status: trade preference and development financing implications for Asia-Pacific countries.” UNDP Bangkok Regional Hub, Bangkok. 2022, https://www.undp.org/sites/g/files/zskgke326/files/2022-12/Graduation%20from%20LDC%20status%20trade%20preference%20and%20development%20financing%20implications%20for%20Asia-Pacific%20countries.pdf (Accessed July 13, 2024).
[xli] Ministry of Industry, Commerce and Supplies. “Nepal Trade Integration Strategy, 2080 (2079-80 to 2084-85).” Government of Nepal. (July 26, 2023), https://moics.gov.np/content/9289/9289-nepal-trade-integration-strate/ (Accessed June 13, 2024).
[xlii] World Trade Organisation. "Nepal Overcoming graduation challenges through national, regional and global efforts." World Trade Organisation, (n.d.), https://www.wto.org/english/tratop_e/devel_e/nepalsasldc_e.htm#:~:text=Nepal%20will%20be%20graduating%20from,required%20to%20ensure%20sustainable%20graduation (Accessed July 20, 2024).
[xliii] World Trade Organisation. "General Council Decision on Extension of Unilateral Duty Free and Quota Free Preferences in Favour of Countries Graduated from the LDC Category." WT/L/1172, World Trade Organisation, (October 23, 2023), https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/L/1172.pdf&Open=True (Accessed July 20, 2024).
[xliv] World Trade Organisation. "WTO Smooth Transition Support Measures in Favour of Countries Graduated from the LDC Category." WT/MIN(24)/34 WT/L/1189, World Trade Organisation, (March 4, 2024), https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/MIN24/34.pdf&Open=True (Accessed July 20, 2024).
[xlv] Anil Giri. "Japan foreign minister talks geopolitics, assures Nepal help in several sectors," The Kathmandu Post, May 6, 2024, https://kathmandupost.com/national/2024/05/06/japan-foreign-minister-talks-geopolitics-assures-nepal-help-in-several-sectors (Accessed June 11, 2024).
[xlvi] Pandey, Posh Raj, et al.. 2022.
[xlvii] Lynch, Leah et al.. "China’s Foreign Aid: A Primer for Recipient Countries, Donors, and Aid Providers". Centre for Global Development. July 2020, https://www.cgdev.org/sites/default/files/chinas-foreign-aid-primer-recipient-countries-donors-and-aid-providers.pdf (Accessed July 24, 2024).
[xlviii] United Nations. “Committee for Development Policy 26th Plenary Session.” United Nations (4-8 March 2024). CDP2024/PLEN/6.d, https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/CDP-PL-2024-6-6-Nepal.pdf (Accessed June 24, 2024).
[xlix] Pandey, Posh Raj, et al.. 2022.
[l] United Nations. “Committee for Development Policy 26th Plenary Session.” United Nations (4-8 March 2024). CDP2024/PLEN/6.d, https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/CDP-PL-2024-6-6-Nepal.pdf (Accessed June 24, 2024).
[li] Asian Development Bank. "Lending Policies and Rates." Asian Development Bank, (n.d.), https://www.adb.org/what-we-do/public-sector-financing/lending-policies-rates (Accessed July 24, 2024)
[lii] Pandey, Posh Raj, et al.. 2022.
[liii] Pandey, Posh Raj, et al.. 2022.