Nepal’s upcoming graduation from the United Nations Least Developed Country (LDC) category has raised concerns over potential job losses in the country’s garment sector, as industry stakeholders warn of reduced global competitiveness.
With LDC graduation, Nepal is expected to lose preferential trade benefits such as duty-free and quota-free market access to key destinations, including the European Union. This shift could make Nepali garment exports less competitive compared to countries that will continue to enjoy such privileges.
Industry leaders fear that rising export costs and declining orders may lead to factory closures and workforce downsizing in the labor-intensive apparel sector, which employs thousands of workers.
Economists note that while LDC graduation reflects Nepal’s economic progress, the transition poses significant challenges for export-oriented industries. Without adequate policy support, productivity improvements, and market diversification, the garment sector could face pressure in sustaining growth and employment.
Photo Courtesy by : The Kathmandu Post
