Nepal climbs one position to become the third competitive economy – out of the eight economies in South Asia behind first-placed India and Bhutan – from the fourth last year, whereas the country has jumped to 94th position – with 63.2 score – out of 190 economies in the World Bank’s ease of doing business rankings due to improved credit information availability, easier cross-border trade, and enforcement of contracts.
Nepal was in the 110th position – with a score of 59.7 points – in the doing business ranking in 2019 World Bank report. The leap of 16 places is also attributed to Nepal’s dissatisfaction over the last year’s ranking. Nepal was ranked 105th in 2018 and slipped five positions to 110 in 2019.
In the Doing Business Report 2020, Nepal scored highest on access to credit information – 37th out of 190 economies – among the 10 indicators used by the World Bank to calculate the ranking as the country has improved access by expanding the coverage of the credit bureau.
Likewise, Nepal also ranked relatively high on cross-border trade – 60th out of 190 economies – as the country has reduced export costs and improved import times by opening the Birgunj Integrated Check Post (ICP), according to the annual report.
However, Nepal has spiralled down in starting a business indicator from 107th to 135th, which reflects all the procedural delays and time-consuming processes that have always deterred investors in Nepal. “Nepal is still poorly ranked in starting a business ranking as the country is in 135th position among the 190 economies as the country has made things more difficult – according to the World Bank – by
Nepal made notable improvements with four reforms, the report reads, adding that the country improved an online e-submission platform for construction permits and enhanced the quality of land administration by publishing official service standards for delivering updated cadastral maps. “Authorities improved the commercial judicial system by introducing time standards for key court events.”
However, Nepal made the process of registering new employees with social security more cumbersome by requiring in-person follow-ups. The country also raised property transfer registration fees, it adds.
Overall, of the 10 indicators that the World Bank evaluates to rank countries, Nepal has improved in five indicators, slipped in three and remained constant in two indicators compared to the previous year, according to the report.
The report measures procedural changes but not the quality and efficiency of the implementation of structural reforms in tax regimens and in starting a business, apart from changes in regulation. Hoever, the report does not account for the level of corruption and the existing level of investor confidence, which are major factors affecting the investment climate.
The index draws data from a questionnaire administered to professionals who oversee or advise on legal and regulatory requirements for doing business. According to the World Bank, most respondents are legal professionals such as lawyers, judges or notaries. In addition, officials of the credit bureau or registry complete the credit information questionnaire. Accountants, architects, engineers, freight forwarders and other professionals answer the questionnaires related to paying taxes, dealing with construction permits, trading across borders and getting electricity. This profile of respondents to the questionnaire perhaps accounts for the report’s focus on regulatory measures over their implementation.
Many South Asian economies kept up a solid pace of business regulatory reforms as India and Pakistan both earned spots among the world’s top ten most improved economies, the World Bank Doing Business 2020 study revealed, adding that it is encouraging to see the steady implementation of reforms in South Asia. According to senior manager of the World Bank’s Global Indicators Group, which produces the study, Rita Ramalho, “Continued and sustained progress is key to improving the domestic business climate and enabling private enterprise.”
Economies in the South Asia region carried out 17 reforms to improve the business climate for domestic small and medium-size enterprises.
South Asian ranking
Afghanistan – 173
Bangladesh – 168
Bhutan – 89
India – 63
Maldives – 147
Nepal – 94
Pakistan – 108
Sri Lanka – 99
Source: World Bank
Nepal was in the 110th position – with a score of 59.7 points – in the doing business ranking in 2019 World Bank report. The leap of 16 places is also attributed to Nepal’s dissatisfaction over the last year’s ranking. Nepal was ranked 105th in 2018 and slipped five positions to 110 in 2019.
In the Doing Business Report 2020, Nepal scored highest on access to credit information – 37th out of 190 economies – among the 10 indicators used by the World Bank to calculate the ranking as the country has improved access by expanding the coverage of the credit bureau.
Likewise, Nepal also ranked relatively high on cross-border trade – 60th out of 190 economies – as the country has reduced export costs and improved import times by opening the Birgunj Integrated Check Post (ICP), according to the annual report.
However, Nepal has spiralled down in starting a business indicator from 107th to 135th, which reflects all the procedural delays and time-consuming processes that have always deterred investors in Nepal. “Nepal is still poorly ranked in starting a business ranking as the country is in 135th position among the 190 economies as the country has made things more difficult – according to the World Bank – by
Nepal made notable improvements with four reforms, the report reads, adding that the country improved an online e-submission platform for construction permits and enhanced the quality of land administration by publishing official service standards for delivering updated cadastral maps. “Authorities improved the commercial judicial system by introducing time standards for key court events.”
However, Nepal made the process of registering new employees with social security more cumbersome by requiring in-person follow-ups. The country also raised property transfer registration fees, it adds.
Overall, of the 10 indicators that the World Bank evaluates to rank countries, Nepal has improved in five indicators, slipped in three and remained constant in two indicators compared to the previous year, according to the report.
The report measures procedural changes but not the quality and efficiency of the implementation of structural reforms in tax regimens and in starting a business, apart from changes in regulation. Hoever, the report does not account for the level of corruption and the existing level of investor confidence, which are major factors affecting the investment climate.
The index draws data from a questionnaire administered to professionals who oversee or advise on legal and regulatory requirements for doing business. According to the World Bank, most respondents are legal professionals such as lawyers, judges or notaries. In addition, officials of the credit bureau or registry complete the credit information questionnaire. Accountants, architects, engineers, freight forwarders and other professionals answer the questionnaires related to paying taxes, dealing with construction permits, trading across borders and getting electricity. This profile of respondents to the questionnaire perhaps accounts for the report’s focus on regulatory measures over their implementation.
Many South Asian economies kept up a solid pace of business regulatory reforms as India and Pakistan both earned spots among the world’s top ten most improved economies, the World Bank Doing Business 2020 study revealed, adding that it is encouraging to see the steady implementation of reforms in South Asia. According to senior manager of the World Bank’s Global Indicators Group, which produces the study, Rita Ramalho, “Continued and sustained progress is key to improving the domestic business climate and enabling private enterprise.”
Economies in the South Asia region carried out 17 reforms to improve the business climate for domestic small and medium-size enterprises.
South Asian ranking
Afghanistan – 173
Bangladesh – 168
Bhutan – 89
India – 63
Maldives – 147
Nepal – 94
Pakistan – 108
Sri Lanka – 99
Source: World Bank
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