The business environment in Nepal for foreign investors has worsened this year compared to last year. However, it leads India and Bhutan in South Asia.

According to the newly released report of the World Bank entitled ‘Doing Business 2007’, Nepal has been ranked 100 among 175 countries. Last year it was at 90.

India has been ranked 134th and Bhutan 138th . Similarly, Bangladesh, Pakistan, Sri Lanka and Maldives are ranked 88, 74, 89 and 53 respectively. China stands at 93.

In 2006, Singapore ranked 1, followed by New Zealand and USA.

The Doing Business database provides objective measures of business regulations and their enforcement. They indicate the regulatory costs of business and can be used to analyze specific regulations that enhance or constrain investment, productivity, and growth. Doing Business determines how friendly is a country for doing business.