Releasing the global report Doing Business 2011, the International Finance Corporation (IFC) of the World Bank 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. [break]
“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 Thursday.
Irina Nieder Berger, program manager of South Asia Enterprise Development Facility (SEDF) of the IFC, said 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.
“Though this report shows Nepal´s better position compared to that of last year, it doesn´t mean that Nepal has made improvements over the year in creating business environment. Nepal´s position is better in the sense that there is scope for improvement in business climate,” said Berger.
Berger said the report doesn´t reflect the overall business climate as it doesn´t measure the security situation, macro-economic stability, corruption and financial systems of countries concerned.
“While analyzing the administrative hassles in doing business, the process of closing business is the worst among the other indicators,” said Berger.
Highlighting the report, Dr. Bimal Koirala, consultant to IFC, said doing business in Nepal is still not good as cumbersome administrative procedures have affected investment in major sectors like manufacturing, hydropower and tourism.
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.
Related story
Mahakavi Devkota's 116th birth anniversary being marked today
-1779842101.webp)
