A new ILO report highlights that Nepal’s graduation from Least Developed Country (LDC) status in November 2026 could pose risks to employment, particularly for women and informal workers, while also affecting exports in key sectors such as apparel and textiles due to the gradual loss of trade preferences. The Employment Impact Assessment, developed jointly by ILO Nepal and the National Planning Commission, emphasizes that without early policy action, higher tariffs, stricter compliance requirements, and increased competition could create challenges for export-oriented industries, while underscoring that graduation also presents opportunities for sustainable growth.
The report calls for strategic investments in competitiveness, skills development, value chains, and trade facilitation, as well as measures to strengthen labour rights compliance and productivity. Simulations show that targeted policies in tourism, ICT, and trade can mitigate adverse effects, stimulate new jobs, and enhance economic resilience. Tripartite collaboration among government, employers, and workers is highlighted as essential to managing the transition, protecting vulnerable workers, and ensuring inclusive growth.
With timely preparation and coordinated reforms, Nepal’s LDC graduation can serve as a catalyst for stronger enterprises, resilient labour markets, and shared prosperity, turning potential challenges into opportunities for decent work and sustainable development. The ILO reaffirms its commitment to supporting Nepal and social partners in achieving a just and inclusive transition.
