International ease of doing business: World Bank ranks Pakistan 105th for 2012

The World Bank has ranked Pakistan 105th for 2012 in the international ease of doing business while, the country enjoyed 96th position last year. The World Bank released its report titled ''Doing Business 2012. Doing Business in a More Transparent World'' that assesses regulations affecting domestic firms in 183 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders.
This year''s report data cover regulations measured from June 2010 through May 2011. The report says that Pakistan has increased the profit tax rate from 20 to 25 percent for small firms, and its international ease of doing business ranking have been down graded. World Bank report has suggested Pakistan to undertake reforms in the areas like business regulation especially ease in paying taxes that are at present making it more difficult for taxpayers.
In the global ranking Pakistan ranked 29 for protecting investors however, in registering property it ranked 125. Trading across border was ranked at 75; enforcing contracts (154) and resolving insolvency (74). In 2011 report, Pakistan made registering property more expensive by doubling the capital value tax to 4 per cent. However, Pakistan reduced the time for trading across borders by improving electronic communication between Karachi Port authorities and the private terminals, which boosted efficiency by introducing new equipment.
The report finds that economies continue to implement reforms that enhance local firms'' ability to do business, with transparency and access to information playing a key role in the reforms. Governments in 125 economies out of 183 measured have implemented a total of 245 business regulatory reforms, 13 percent more reforms than the previous year. Over the past six years, 163 economies have made their regulatory environment more business-friendly.
The report highlights that the rank of India in international ease of doing business 2012 is 132 while it was 139 in the year 2011. Sri Lanka strengthened investor protection by requiring greater corporate disclosure in cases of transactions between interested parties. It made paying taxes less costly for businesses by abolishing the turnover tax and social security contribution and by reducing corporate income tax, value added tax, and national building tax rates. Areas of business regulation reform: Protecting investors and paying taxes. Its rank in Doing Business 2012 is 89 while that was 98 in 2011.
The report shows that Bangladesh made getting electricity connections more difficult by imposing a moratorium on new connections from April 2010 to March 2011 because of electricity supply shortage. This moratorium has led to long delays for customers and has increased the time to obtain an electricity connection. Bangladesh rank in international ease of doing business in the year 2012 is 122 while it was 118 the last year.