South Asia Watch on Trade, Economics and Environment (SAWTEE)

25/05/2026

The government last week presented the principles and priorities of the upcoming national budget in parliament, focusing on good governance, digital service delivery, connectivity, human capital development and economic reform. However, the budget is also being prepared at a time when Nepal is facing several external and domestic challenges, including the impact of the West Asia war and the decision to seek a deferral of its graduation from the least developed country (LDC) category.

The government has focused on transparency and the rule of law, and while those are important, increasing the capacity of the private sector is crucial,” explains Posh Raj Pandey, Chair Emeritus of the South Asia Watch on Trade, Economics and Environment (SAWTEE). “Our targets for the digital economy are too ambitious, there are still 20% of people below the poverty line, and the new government hasn’t really taken climate mitigation and adaptation into account.”

Nepali Times

Next week’s budget has to factor in impact of the West Asia war and Nepal deferring LDC graduation

21/05/2026

सरकारले ऋण लिएको रकम तलब–भत्ता र ऋण तिर्नमै खर्च

सरकारले सार्वजनिक ऋण उठाएको रकम तलब–भत्ता खानदेखि ऋण तिर्नमै खर्च भएको देखिएको छ। दीर्घकालीन भार पर्ने गरी उठाइएको ऋण पुँजी निर्माणमा खर्च गर्नुपर्नेमा चालू शीर्षकमा खर्च गरिएको महालेखा कार्यालयको पछिल्लो प्रतिवेदनले देखाएको हो।

साउथ एसिया वाच अन ट्रेड, इकोनोमी एन्ड इन्भायरोमेन्ट (सावती)का कार्यकारी निर्देशक पारस खरेलले सार्वजनिक ऋणलाई चालू प्रकृतिका कार्यमा मात्रै खर्च गरिँदा त्यसले दीर्घकालमा अझ बढी असर गर्ने बताए। ऋण लिएर विकासका कार्यमा खर्च गर्दाचाहिँ पुँजी निर्माण हुने, आर्थिक गतिविधि बढेर राजस्वको दायर बढ्ने र ऋण तिर्न सक्ने क्षमतासमेत विस्तार हुने उनले बताए। तर, ऋण लिएर तलब–भत्तामै सक्ने हो भनेचाहिँ भोलिका दिनमा ऋण तिर्नसमेत नसक्ने अवस्था आउन सक्ने उनले औँल्याए।

सरकारले सार्वजनिक ऋण उठाएको रकम तलब–भत्ता खानदेखि ऋण तिर्नमै खर्च भएको देखिएको छ । दीर्घकालीन भार पर्ने गरी

20/05/2026

In the third edition of SAWTEE's Peer Learning Series, Madhu Marasini, Senior Fellow,SAWTEE made a presentation on the topic "Government of Nepal's Policy Directions and Priorities" based on the status paper on current economy and policy and programmes of FY 2083/84 at SAWTEE premises on Monday, May 18, 2026.

We extend our sincere gratitude to Mr. Marasini for generously sharing his time and expertise with the team.

19/05/2026

SAWTEE’s Executive Director, Dr. Paras Kharel, spoke on ways to unlock Nepal’s export potential in a panel on “Unlocking Nepal’s Export Potential: Agriculture, Trade, and Value Addition”, convened by Federation of Export Entrepreneurs Nepal (FEEN) at the Nepal Business Summit in Kathmandu on 18 May 2026.

19/05/2026

Ms. Dikshya Singh, Programme Coordinator, SAWTEE, participated at the 13th Trade Policy Dialogue on "Trade Preferences Outlook 2025: Navigating in Times of Uncertainty" (Part I), jointly organized by UN Trade and Development (UNCTAD) and the UN Economic and Social Commission for Asia and the Pacific (ESCAP) on 18 May 2026 (online), as a panel discussant, where she discussed the trade impacts of changes and uncertainty in preferential market access on developing countries and LDCs, with a particular focus on Nepal's experience as a country that has recently decided to seek a three-year deferral of its LDC graduation.

The other panellists included Mr. Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD), Bangladesh; Mr. Yuta Watabe, Researcher, Institute of Developing Economies, Japan External Trade Organization (JETRO); and Mr. Alexey Kravchenko, Economic Affairs Officer, ESCAP. The session, moderated by Mr. Taisuke Ito of UNCTAD, brought together trade negotiators, policymakers, researchers, and development practitioners from across Asia and the Pacific to discuss the findings of UNCTAD's Trade Preferences Outlook 2025 and explore policy options for shaping non-reciprocal trade preferences to foster sustained and inclusive growth in preference-receiving economies.

UN Trade and Development United Nations ESCAP Centre for Policy Dialogue (CPD)

18/05/2026

नेपालले अति कम विकसित मुलुक (एलडीसी) बाट स्तरोन्नति हुने प्रक्रिया तीन वर्षका लागि पछाडि सार्न राष्ट्रसंघसमक्ष अनुरोध गर्ने भएको छ ।

नियमित प्रक्रिया अनुसार अघि बढेको भए नेपालले सन् २०१८ मै स्तरोन्नति हुने निर्णय हुन सक्थ्यो । तर, त्यसबेला सरकारले नेपाल स्तरोन्नतिका लागि तयार नभएको भन्दै निर्णय प्रक्रिया सार्न राष्ट्र संघलाई अनुरोध गरेको थियो । महासभाले कोभिडको ठूलो धक्का सामना गरेकाले स्तरोन्नति हुने मुलुकलाई तयारीको समय सामान्यभन्दा दुई वर्ष बढाएर पाँच वर्ष प्रदान गरेको थियो । त्यस अनुसार तयारी अवधि यही वर्ष नोभेम्बरमा सकिँदै छ । तर, नेपालले फेरि पनि स्तरोन्नतिका लागि आफू तयार नभएको भन्दै तयारी अवधि तीन वर्ष बढाइदिन राष्ट्र संघलाई पत्राचार गर्ने निर्णय गरेको छ ।

साउथ एसिया वाच अन ट्रेड, इकोनोमिक्स एन्ड इन्भायरोमेन्ट (सावती) का कार्यकारी निर्देशक डा. पारस खरेलका अनुसार स्तरोन्नतिपछि सामान्यतया तीन वर्षको समय तयारीका लागि पाउने चलन छ ।

तर, कोभिडका बेला स्तरोन्नति भएका नेपाल, बंगलादेश र लाओसले यस्तो तयारीका लागि ५ वर्षको समय पाएका थिए । तर, गत पाँच वर्षमा सहज र दिगो स्तरोन्नतिका लागि नेपालले जुन स्तरको तयारी गर्नुपर्ने थियो, त्यसमा कमजोरी भएको उनको विश्लेषण छ । ‘तयारीमा राम्रो काम भएन, त्यति मात्रै होइन, जेनजी आन्दोलनपछि नेपालमा नयाँ राजनीतिक परिस्थिति पनि बनेको छ,’ खरेलले भने, ‘पछिल्लो समय निजी क्षेत्रको आत्मविश्वास पनि कमजोर भएको छ, पश्चिम एसियामा जारी युद्धले अर्थतन्त्रमा नयाँ चुनौती खडा गरेको अवस्था पनि छ ।’

सोहीकारण तयारीका लागि पाएको अवधि थप तीन वर्ष थप्न सरकारले गरेको अनुरोधलाई सकारात्मक रूपमै लिनुपर्ने उनको राय छ ।

📌News link in comment.

18/05/2026

Nepal will seek delayed LDC graduation citing economic constraints

Government officials and private sector leaders say Nepal lacks the economic strength, trade preparedness, and investor confidence needed to graduate from Least Developed Country status in 2026.

“The LDC Graduation Smooth Transition Strategy published by the National Planning Commission itself shows that Nepal still has significant implementation work left,” said Paras Kharel, executive director of the South Asia Watch on Trade, Economics and Environment (SAWTEE). “Looking at Nepal’s level of preparation, an extension appears necessary.”

Government officials and private sector leaders say Nepal lacks the economic strength, trade preparedness, and investor confidence needed to graduate from Least Developed Country status in 2026.

18/05/2026

अति कम विकसित मुलुक (एलडीसी) बाट विकासशीलमा स्तरोन्नतिका लागि तोकिएको समय तीन वर्ष पर सार्ने गरी नेपालले संयुक्त राष्ट्रसंघलाई आग्रह गर्ने भएको छ । नोभेम्बर २०२६ मा स्तरोन्नति हुने गरी यसअघि राष्ट्रसंघले गरेको निर्णय पर सार्न सरकारले औपचारिक रूपमा पत्र पठाउने तयारी गरेको छ।

‘राष्ट्रिय योजना आयोग आफैंले प्रकाशन गरेको विकासशील मुलुकमा स्तरोन्नति रणनीति प्रतिवेदनले नेपालमा अझै पनि धेरै कार्यक्रम कार्यान्वयन गर्न बाँकी देखाउँछ,’ साउथ एसिया वाच अन ट्रेड, इकोनोमिक्स एन्ड इन्भाइरमेन्ट (सावती) का कार्यकारी निर्देशक पारस खरेलले भने, ‘नेपालको तयारी अवस्था हेर्दा म्याद थप आवश्यक देखिन्छ ।’

पूरा समाचार पढ्नका लागि: https://ekantipur.com/business/2026/05/17/the-time-for-upgrading-from-least-developed-country-to-least-developed-country-is-being-pushed-back-38-48.html

18/05/2026

Government officials and private sector leaders say Nepal lacks the economic strength, trade preparedness, and investor confidence needed to graduate from Least Developed Country status in 2026.

“The LDC Graduation Smooth Transition Strategy published by the National Planning Commission itself shows that Nepal still has significant implementation work left,” said Paras Kharel, Executive Director of the South Asia Watch on Trade, Economics and Environment (SAWTEE). “Looking at Nepal’s level of preparation, an extension appears necessary.”

Government officials and private sector leaders say Nepal lacks the economic strength, trade preparedness, and investor confidence needed to graduate from Least Developed Country status in 2026.

06/05/2026

In this month’s commentary, Ashim Bhandari, Communication Associate at SAWTEE, examines the key discussions, achievements, and shortcomings of the Fourteenth WTO Ministerial Conference, held from 26–30 March in Yaoundé, Cameroon.

Read article: https://sawtee.org/category/commentary/reflections-on-the-fourteenth-ministerial-conference