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Nepal Graduation Readiness Assessment
Nepal is scheduled to graduate from the least developed country (LDC) category on 24 November 2026, following the recommendation of the United Nations Committee for Development Policy in 2021 and subsequent endorsement by the General Assembly in its resolution 76/8. Nepal, together with its graduation peers Bangladesh and the Lao People¡¯s Democratic Republic, was granted an extended five-year preparatory period, in recognition of the exceptional socioeconomic disruptions caused by the coronavirus disease (COVID-19) pandemic. Progress in human development, infrastructure-building and broader social and political transformation has underpinned the country¡¯s positive trajectory.
Nepal has met all three LDC graduation criteria. It has reached the human assets index and the economic and environmental vulnerability index thresholds across multiple consecutive triennial reviews. Gross national income per capita crossed the graduation threshold only recently, rising from $1,041 in 2020 to $1,404 in 2025, against a threshold of $1,306. The human assets index reached 77.58, well above the threshold of 66, while the economic and environmental vulnerability index remained at 28.96, below the threshold of 32. These indicators confirm graduation eligibility, and the most recent monitoring by the Committee for Development Policy has reaffirmed that Nepal meets all three criteria.
To guide the transition process, the Government of Nepal prepared a smooth transition strategy for LDC graduation, supported by a detailed policy and action matrix covering 167 time-bound actions across six strategic pillars. The strategy is aimed at mitigating the impacts of phasing out LDC-specific international support measures, monitoring implementation, sustaining graduation beyond 2026 and towards 2030, and prioritizing transition-related responsibilities. Following a request transmitted through the Permanent Mission of Nepal to the United Nations in New York, the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (Ä¢¹½ÊÓÆµ-OHRLLS) commissioned this independent and evidence-based readiness assessment to evaluate Nepal¡¯s preparedness for LDC graduation.
The graduation criteria measure a country¡¯s performance against agreed indicators and thresholds. Meeting the formal criteria for LDC graduation does not necessarily mean that the sustainability and resilience of a country¡¯s development trajectory are fully secured. While the graduation criteria assess performance against specific benchmarks, the readiness assessment examines the country¡¯s overall situation and its preparedness to manage a smooth and sustainable transition without reversing development gains. As underscored in General Assembly resolution 67/221, adopted in 2012, graduation should ¡°not cause disruption in the development progress which that country has achieved¡±. In this context, the readiness assessment evaluates the current state of economic, institutional and policy capacities on the ground, in particular their ability to absorb post-graduation challenges arising from the withdrawal of international support measures, especially in the face of multiple and overlapping shocks.
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