Kathmandu, May 23 -- Nepal has formally decided to postpone its graduation from the Least Developed Countries (LDC) category for at least three years, citing worsening economic and geopolitical challenges that it says have weakened the country's preparedness for the transition.

The Ministry of Foreign Affairs said on Friday that Nepal has begun the formal process to defer its graduation deadline until November 2029, arguing that the current economic and political circumstances could severely affect the country after losing LDC-specific international support measures.

Foreign Minister Shisir Khanal sent a formal letter to the chair of the United Nations Committee for Development Policy on May 13 requesting the postponement.

"We have for...