As per the Doing Business Report 2020, Nepal improved its Doing Business ranking to 94 from its previous ranking 105. Nepal has improved in five indicators, slipped in three and remained constant in two indicators compared to the previous year, as per the report. The World Bank has said that the environment for doing business in Nepal has improved but the country has made starting a business more difficult and property registration more expensive.
Nepal ranks 3rd after India and Bhutan among South Asian countries both in Doing Business ranking of 2019 and 2020.
The environment is assumed to become better as the importance of the private sector is well recognized in the newly promulgated Constitution of Nepal 2015. The government has allocated special economic zone (SEZ) which is a commercial area established for the promotion of foreign trade, to attract foreign and national investors to invest in, and establish export-oriented industries and businesses. The SEZ Authority Act, 2016 and SEZ Authority Regulation that came into effect from September, 2017 has specific provisions that makes it attractive for investors to establish industries in SEZs. There are 14 different locations declared as SEZ sites till now, out of which Bhairahawa SEZ is already complete. The other locations are Dhanusa, Gorkha, Jhapa, Jumla, Dhangadi, Kailali, Morang, Nepalgunj, Nuwakot, Paanchkhal, Rautahat, Simara and Siraha. The investors who invest in these areas can enjoy extended tariffs and exemptions.
(Image Source- WorldBank)
