Problematic Factors For Doing Business In Nepal

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Nepal’s political instability is cited as major reason for economic slowdown of the country.

No wonder, political instability is reported as top problematic factor for doing business in Nepal .

According to Global Competitive Index, political instability/coups, corruption and bureaucratic inefficiency have been major hurdles for running a business house.

The survey was conducted by taking top 5 rankings among the provided 16 options from the respondents in each country. In Nepal, above 5% of responses were citing political constructions and drawbacks as major problems for running business. Restrictive labor regulation and infrastructural lacking were also among top reasons for business boosting.

Lack of financial access was also ranked 7th which clearly pictures the stage of financial distribution, despite the mushrooming number of financial institution in the country.

On economic prospects, tax rate and foreign currency regulations had shown minimal effect on business growth in Nepal.  Crime and theft is also not prioritized by the respondents in the list showing that Nepal still is a secure country in terms of safety. Inefficient manpower, inadequate educated workforce are not major problematic factors.  Public health index is ranked as least problematic factor for doing business in Nepal.

However, political instability has ruled the list as it has been a prime reason for all existing national chaos, economic aspect being an integral aspect.

For factor driven economy like Nepal, governmental instabilities cause modification of purposed plans and policies leading to lack of rigidness in bureaucratic level that ultimately discourages business sector.




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