Top government officials, representatives from the private sector and development partners have discussed policy issues and other preparatory tasks that needed to be expedited ahead of Nepal's graduation from the Least Developed Country (LDC) status in 2026.

They deliberated on the issue during a dialogue organised by the Ministry of Industry, Commerce and Supplies in collaboration with the EU Nepal Trade and Investment Programme, on Friday.

During the event, Damodar Bhandari, minister for Industry, Commerce, and Supplies, stressed the need for a comprehensive review of existing policies that may be impeding Nepal’s international trade.

"Minister Bhandari reiterated the government’s commitment to accelerating policy reform for bolstering production and promoting exports and emphasised the growing role of the private sector in the national economy," read a press release issued after the event.

Abdul Khan, chairman of the Industry, Commerce and Labour and Consumer Welfare Committee of the House of Representatives, emphasised the need for timely reform of export-oriented policies with a concrete road map to promote Nepal’s international trade.

Members of Parliament expressed their commitment to extending support in legal and policy formulations for the promotion of Nepal's trade sector keeping in view the scheduled LDC graduation of Nepal.

Commerce Secretary Gobinda Bahadur Karki and Industry Secretary Krishna Bahadur Raut shed light on various policy and legal initiatives from the government to facilitate the growth of the industry and commerce sector.

EU Ambassador to Nepal, Veronique Lorenzo, highlighted the EU’s commitment to supporting Nepal’s economic progress, LDC graduation, and prosperity. "Lorenzo noted that graduation could improve Nepal’s global image and attract investment," the press release stated.

She urged Nepal to be well-prepared for GSP Plus by ratifying required key international conventions. Generalized System of Preferences Plus is the European Union’s special incentive arrangement for sustainable development and good governance.

Trade experts emphasised the importance of adhering to new WTO obligations, including agreements on agriculture, subsidies, Agreements on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and Trade Facilitation Agreements (TFA) for smooth transition. They also cautioned that the transition entails stricter rules and reduced benefits, such as the loss of preferential tariffs stressing the urgent need to implement the action plan to ensure a smooth transition from LDC status.

Private sector stakeholders stressed the urgency of strengthening export capabilities, fostering product and market diversification, and augmenting trade competitiveness to navigate the evolving global trade landscapeafter Nepal’s LDC graduation.