Ease of doing business: government in talks with WB for improvement in ranking

The government has begun consultations with the World Bank on how to improve the country''''s ranking in the "Ease of Doing Business Index" with the objective of attracting foreign investors, said sources in the Board of Investment (BOI). Senior officials of BOI maintained that "we are finalizing a plan in consultation with World Bank survey team about the measures Pakistan is required to take to improve its ranking and business climate."
The 12th and final International Monetary Fund review under the Extended Fund Facility (EFF) noted last year that Pakistan''''s weak business climate continues to constrain private investment and economic growth and despite several measures to improve the business climate, Pakistan''''s position in the World Bank Doing Business ranking further slipped to 138 in 2016 (out of 189 economies) from 136 in 2015, reflecting Pakistan''''s slower pace of reforms compared to other countries.
The review further stated that Pakistan''''s ranking in starting a business, getting credit, and trading across borders has worsened, "lengthy procedures and high costs for opening a new business and paying taxes, limited access to credit notably for small and medium enterprises (SMEs), complex border trading requirements, constraints in accessing electricity, and weak contract enforcement continue to weigh on Pakistan''''s business climate, which ranks below the South Asia average and comparator emerging markets countries."
The IMF review stressed that "sustained implementation of the new business climate reform strategy beyond the end of the program will be important to effectively strengthen the business climate and attract much needed growth-supporting private sector investment. Staff also welcomed the simplification of the import tariff structure from five to four slabs in July 2016."
Pakistan is focusing on four areas out of ten in the ease of doing business index, which are being discussed with the WB survey team, BoI officials stated. Ease of doing business is the utmost priority of the PML-N government to attract foreign investors. He claimed that BoI has digitalized the visa process for foreign investors and transformed liaison and branch office from manual to online.
Spokesman for BOI claimed Pakistan was among top 10 countries which had shown an improvement in investment laws and facilitation of foreign investors. The Spokesman further said that SEZs investors would get the facility for plant and machinery import without customs duty in all four provinces of the country. Three SEZs would be established - one each in Punjab, Sindh and Khyber-Pakhtunkhwa, he added.