The Economist referred to Pakistan as "one of the 10 most reformed economies" this year. Pakistan's Ease of Doing Business (EoDB) ranking improved by 28 notches which is an unprecedented jump in the country's DB history. Annually, the World Bank issues a ranking in its Doing Business Report to measure improvement in the business climate of a country. Last year, Pakistan advanced 11 points to 136th position. According to the recent Doing Business Report 2020, Pakistan jumped 28 positions and is now placed at 108th position out of 190 countries as a result of the highest number of reforms (six) accepted by the World Bank.
The Board of Investment (BOI), Prime Minister's Office, has successfully led the process of EoDB reforms along with Securities and Exchange Commission of Pakistan (SECP), Federal Board of Revenue (FBR), Governments of Punjab and Sindh and other related institutions including LDA, SBCA, LESCO, K-Electric, PLRA, Sindh Board of Revenue and Sindh Investment Department.
In Pakistan, World Bank measures the business environment of two cities Karachi (65% weightage) and Lahore (35% weightage). It measures 10 Doing Business indicators and the private sector is main source for getting information through Doing Business Surveys. Pakistan has improved business in following 6 areas:
1. Pakistan made starting a business easier by expanding procedures available through the online one-stop shop. SECP's e-services have been integrated with FBR, EOBI and Business Registration portal of Punjab and Sindh.
2. Sindh Building Control Authority (SBCA) has made obtaining a construction permit easier and faster by streamlining the approval process and ensuring that building quality inspections take place regularly. Similarly Lahore Development Authority (LDA) has also made obtaining a construction permit easier and faster by streamlining the approval process and by improving the operational efficiency of its one-stop shop for construction permitting.
3. Pakistan made getting electricity easier by enforcing service delivery time frames and by launching an online portal for new applications. Pakistan also increased the transparency of electricity tariff changes.
4. In Karachi property registration has been made faster by making it easier to execute and register a deed at the Office of the Sub-Registrar while in Lahore registering property has been made easier by increasing the transparency of the land administration system.
5. Pakistan made paying taxes easier by introducing online payment modules for value added tax and corporate income tax, and less costly by reducing the corporate income tax rate.
6. Pakistan made trading across borders easier by enhancing the integration of various agencies in the Web-Based One Customs (WEBOC) electronic system and coordinating joint physical inspections at the port.
In order to continue the momentum, a three-year DB strategy has been launched which focuses on automation and improved transparency in all business indicators. Considerable improvement in the DB ranking of Pakistan is just the beginning of many economic reforms that the Government of Pakistan is pursuing under the directions of the Prime Minister. It goes without saying that when systems, processes, rules and regulations are business-friendly, setting up businesses becomes easier.
Copyright Business Recorder, 2019
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