Report to be released on 24th: Pakistan may achieve high ranking on EODB Index

The federal government is expected to achieve high ranking in the Ease of Doing Business (EODB) Report 2020 to be released on October 24, 2019. Officials in the Board of Investment (BoI) expressed hope that Pakistan would improve its ranking on the EODB Index significantly after it has been enlisted among the World Bank's list of 'Top-20 improvers in Doing Business 2020'. The officials maintained that ranking of Pakistan in top 20 improvers is taken alphabetically and not on the base of performance in six key sectors of economy out of total ten indicators. In South Asia, World Bank has accepted China's performance in 8 indicators out of ten. The reforms in Pakistan's six indicators were accepted, while India's four reforms were accepted and Bangladesh has been recognized in three reforms.

The government has targeted eight areas for reforms and the World Bank accepted six. Pakistan has almost achieved two targets 'Getting Credit' and 'Enforcement Contract'.

In the Ease of Doing Report 2019, Pakistan's ranking was improved from 147th to 136th after the WB recognized and accepted three reforms in the sector.

The officials further said that President World Bank (WB) David R Malpass along with the staff of EODB is expected to visit Pakistan on November 1, 2019 as recognition to Pakistan's efforts in improving six areas and to be among top improvers of the world.

"This year, Saudi Arabia and Bahrain have stood first in top reforming countries with a score of nine accepted reforms by the World Bank team," the officials said.

The provincial governments of Sindh and Punjab have supported and cooperated in bringing improvements by implementing the strategy of the federal government to improve the ranking. Businessmen and staff of WB also independently verified the improvements in various sectors.

According to the World Bank, Pakistan has improved in six areas measured by 'Doing Business', which are: starting a business, dealing with construction permits, getting electricity, registering property, paying taxes and trading across borders.

A high-powered fourteen-member steering committee headed by Prime Minister Imran Khan is working on improvement in ranking on the index of EODB.

Since 2008, the World Bank has accepted and recognized a total of 22 reforms and the highest acceptance is 6.

The Ease of Doing Business Report measures ten indicators of the economy by absolute measure through distance to frontier score and relative measure through ranking. In Pakistan, the WB takes two cities in the final ranking of Pakistan and these include Karachi (with 65 percent weightage in total DTF score) and Lahore (35 percent weightage).

The officials said that the impact of long-term measures would be sustainable. SMEs sector would be benefited from these measures and the present focus of Prime Minister is also on the promotion of this sector.

The Board has also has a scheduled meeting with the Prime Minister and members of Steering Committee on October 23, 2019 to evolve a strategy to provide utility services in four Special Economic Zones (SEZs) in the next six months.

The government has given top priority to building SEZs in Rashakai (Nowshera), Hattar (Haripur), Faisalabad and Dhabeji Special Economic Zone (DSEZ) in Thatta for facilitating international and local investors in the country.

Copyright Business Recorder, 2019