Nepal Stands Second In South Asia in Ease of Doing Biz Index

Nepal has secured second position in terms of ease of doing business among South Asian economies, after Bhutan, according to the World Bank’s Doing Business Report 2017. Nepal ranks 107th on the Doing Business Index after Bhutan (73rd). However, the country’s position has slipped in comparison to its ranking (99th) last year. The main reason behind the drop is decline in Nepal’s business regulatory environment and some changes in the methodology of measuring ease in doing business. High ease of doing business ranking means the regulatory environment is more conducive for setting up and operating a local firm. On the distance to frontier metric, Nepal’s score went down from 59.36 in Doing Business 2016 to 58.88 in Doing Business 2017, using a comparable methodology. The report has also revealed that Nepal made obtaining construction permits more difficult by increasing the cost of acquiring a building permit in fiscal 2015-16. However, on the positive side, Nepal also made exporting and importing easier by implementing automated system for customs data — an electronic data interchange system. The country has recently made progress in institutional reforms on several fronts, but that has not been reflected in the report. “It will take some time for the recent reforms to be reflected in international rankings, including in the Doing Business report,” says a statement from the World Bank.