Nepal must prepare a transition strategy in cooperation with trade and development partners to avoid adverse impacts from the country’s graduation from least developed country status as it risks losing preference treatment after graduation, a government report says.
While preparing the transition strategy, Nepal also needs to conduct a fresh review of the scheduled graduation plan considering the impact of the impact of the Covid-19 pandemic, the report titled “Nepal Human Development Report 2020: Beyond LDC Graduation: Productive Transformation and Prosperity” states.
The report was prepared by the National Planning Commission and the United Nations Development Programme, and was unveiled early this week.
“The Covid-19 pandemic may have profound impacts on the graduation criteria, with new risks of rising trade and export costs impacting external markets, and the need for more concessional aid, including debt relief, to overcome multiple crises,” the report says. “All of these factors may require a fresh review of the scheduled graduation plan while developing a transition strategy.”
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