IFC helps Nepal pick up pace in improving business regulation for local firms

International Finance Corporation (IFC) -- a member of the World Bank Group -- is working with Ministry of Industry (MoI) to identify and minimise regulatory constraints, an initiative designed to improve the ease of doing business, increase economic activity, reduce costs and risks of business operations, and improve the government's capacity to build and sustain momentum for reform.
Private sector development and new business development are critical to Nepal’s economic growth and prosperity. IFC -- in partnership with the UK Department for International Development (DfID) -- is working on a reform programme as part of its commitment to strengthen business registration and assess the current registry system to help make Nepal more attractive for private investment.
"We are pleased to work with IFC to prioritise good governance and transparency through process simplification, and to introduce legal and strategic reforms to aid business,” said Pratap Kumar Pathak, secretary of the Ministry of Industry.
The government has been quick to recognise the importance of these issues and is engaged in several initiatives to promote private sector growth and foster an enabling environment for business.
"Adopting best practices in business registration, such as waiving minimum capital for registration and creating a unique number for business entities, will result in faster business registrations. A fully automated business registry system will improve efficiency,” said IFC senior operations officer Albena Melin.
IFC Advisory Services recently hosted a one-day long workshop, bringing together reform specialists from around the world to share global best practices on business registration, licensing, and information technology with government officials and domestic entrepreneurs.
Ranked 116th in the Doing Business 2011 report, Nepal needs to improve in many areas, including starting a business, dealing with construction permits, paying taxes, and trading across borders.
IFC -- a member of the World Bank Group -- creates opportunity for people to escape poverty and improve their lives. "We foster sustainable economic growth in developing countries by supporting private sector development, mobilising capital for private enterprise and providing advisory and risk mitigation services to businesses and governments," the IFC said.