Nepal slipped four positions down in the fresh Corruption Perception Index of Transparency International.
While Nepal was at the 126th position with a score 29 points in 2014, Nepal in 2015 was placed at the 130th position with a score of 27 points.
The international anti-corruption organisation published the report on Wednesday.
Cameroon, Iran, Nicaragua, Paraguay and Ukraine share Nepal’s position with the equal score.
Total 168 nations were included in the study.
Denmark, Finland, Sweden, New Zealand and the Netherlands are the five best performers with 91, 90, 89, 88 and 87 points respectively.
Likewise, Somalia, North Korea, Afghanistan, Sudan and South Sudan are the worst performers.
Among the South Asian nations, Nepal is just ahead of Afghanistan (166th position with 11 points) and Bangladesh (139th position with 25 points).
Bhutan is found to be the least corrupt among the South Asian Association for Regional Cooperation (SAARC) members. It is placed at the 27th position with 65 points.
Following Bhutan are India (76th position with 38 points), Sri Lanka (83rd position with 37 points) and Pakistan (117th position with 30 points).
Maldives was not listed in the Index.