Doing Business 2011

KATHMANDU: Though Nepal failed to make any regulatory changes to facilitate business investment, its ranking improved to 116th position this year compared to 123rd last year, on the ground of good prospects for doing business in coming days.

Releasing the global report Doing Business 2011, the International Finance Corporation (IFC) of the World Bank (WB) Group stated that Nepal shifted to the better position as compared to last year due to scope for improvements in selected indicators like Starting a Business, Dealing with Construction Permit, Paying Taxes, Trading Across Border and Electricity Connection.

“Nepal´s inter-ministerial government body chaired by the Chief Secretary called the Private Sector Development Committee (PSDC) is mandated to request concerned line ministries to implement reform decisions to improve the investment climate in Nepal,” stated the IFC in a statement issued on 4^th November 2010.

The countries are ranked on the basis of snap shot indicators on initiating, operating and closing a business in the respective countries, not all the aspects of the business environment that matter to firms and investors.

The report has put war-torn Afghanistan at 167th position -- the lowest position among South Asian nations, followed by Bhutan and India that fall in 142nd and 134th positions respectively.

Similarly, the report has placed Bangladesh and Sri Lanka at 107 and 102 positions respectively. The Maldives and Pakistan have been put at 85th and 83rd positions.

Under the aggregate ranking, Singapore has been placed at first position. According to the report, Nepal is in better position than India in term of procedures, cost and minimum capital to start a business.

However, India is more lucrative compared to Nepal in terms of the number of days required before an entrepreneur can operate a business. Nepal is the second worst country after Afghanistan in number of days required before an entrepreneur can export and cost to export. Time and cost to import goods to Nepal is shorter than in Afghanistan and Bhutan.

Other economies in South Asia are also improving regulation with faster, transparent, electronic systems.

The report added that the five-year measure of cumulative change reflects that doing business has become easier in India, Bangladesh, Maldives, Bhutan and even Afghanistan. Nepal ranks fifth among the South Asian countries.

Other economies in South Asia are also improving regulation with faster, transparent, electronic systems.

Report revealed that from June 2009 through May 2010, four of eight economies in South Asia reformed business regulations to expand opportunity for local firms.