Nepal has secured an additional three years to prepare for graduation from the Least Developed Country (LDC) category, extending its transition period until November 2029.

Nepal was originally scheduled to graduate from the LDC category on November 24, 2026. However, the country sought an extension, citing the need for more time to strengthen its economy and prepare for the challenges associated with graduation.

Nepal has already met all three criteria used by the United Nations to assess eligibility for graduation: gross national income per capita, the Human Assets Index and the Economic and Environmental Vulnerability Index. Despite meeting these benchmarks, concerns remain over the country's production capacity, export competitiveness and economic resilience.

Graduation from the LDC category could gradually affect Nepal's access to certain international trade preferences, development assistance and other concessional support. The additional preparation period is expected to provide more time to strengthen domestic production, diversify exports, attract investment and improve economic competitiveness.

The extension would shift Nepal's planned graduation timeline from November 2026 to November 2029. The transition is intended to help the country prepare for a more sustainable graduation from the LDC category.