Doing Business in South Asia 2007

Author: Subnational Doing Business
Published: February 13, 2007
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Doing Business in South Asia 2007 is the third in a series of regional Doing Business reports based on the methodology of the annual global Doing Business report. Doing Business investigates the scope and manner of regulations that enhance business activity and those that constrain it. New quantitative indicators on business regulations and their enforcement can be compared across Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka and over time, together with global best practices. Doing Business in South Asia also builds indicators for 12 cities in India, 6 in Pakistan and 4 in Bangladesh.

Main Findings

  • In 2005-2006, the pace of reform was slower in South Asia than in any other region, with only India and Pakistan starting to improve their business environment.
  • The report found that entrepreneurs in South Asia face large regulatory obstacles to doing business. More than a year (425 days) was needed to register property in Bangladesh. Taxes were high: a standard company in India paid 81% of commercial profits in taxes.
  • The top ranked countries in the region were the Maldives (53) and Pakistan (74), followed by Bangladesh (88), Sri Lanka (89), Nepal (100), India (134), Bhutan (138), and Afghanistan (162).
  • As a region, South Asia performed comparatively well in business start-up and protecting investors. It lagged far behind, however, on the ease of employing workers, enforcing contracts, and trading across borders.