Kathmandu, May 16 -- Nepal is preparing to ask the United Nations to defer its scheduled graduation from the category of Least Developed Countries by three years, amid concerns that the country is not economically prepared to forgo the trade and development privileges tied to its current status.

The Balendra Shah government is shortly sending a formal letter seeking a deferral of the UN's earlier decision to schedule Nepal's graduation for November 2026.

An official at the Office of the Prime Minister and Council of Ministers said the government decided to seek an extension, citing concerns over the loss of trade and other preferential facilities Nepal currently enjoys as an LDC, rising economic vulnerabilities triggered by tensions in ...