Business and Regulatory Environment


One of the key objectives of Nepalese economic policy is to encourage a fair and transparent business environment for domestic and foreign companies alike (WTO 2012). Nepal has sought to establish a competitive market economy system through the privatization of public enterprises since 1992 and the adoption of competition policy since 2007. However, despite these efforts, FDI inflows are still very limited due to the high cost of doing business, limited investment opportunities, and political instability. The World Bank Doing Business Report (2013) ranked Nepal at 105th out of 185 economies. The weakest performance was apparent in trade across borders, which was ranked at a record 177th, this being caused again by Nepal’s geographical characteristics as a landlocked country and its poor transportation infrastructure. Moreover, foreign investment opportunities are limited to activities such as cottage industries, travel agencies and consultancy services. According to the United States Investment Climate Statement (2013), foreign investment is mainly hampered by political instability, labour unrest, continuing bureaucratic delays and inefficiencies, pervasive corruption, and perennial power shortages.

The Business Environment: Doing Business

Multilateral Trade Instruments


The Trade Treaties Map tool is a web-based system on multilateral trade treaties and instruments designed to assist trade support institutions (TSIs) and policymakers in optimizing their country's legal framework on international trade

Instrument ratified :
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Weighted score : /100
    Ratification Rate Rank Weighted Score Rank
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