Samlee
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ISLAMABAD:
In a development that will greatly improve Islamabad’s image abroad, Pakistan has jumped up 28 places on the World Bank’s Ease of Doing Business Index and clinched 108th position besides securing a place among top ten global business climate improvers.
Pakistan carried out six reforms in the last one year that helped improving its ranking from 136 to 108, according to the World Bank’s annual flagship report “Ease of Doing Business 2020”, released on Thursday.
The economies with the most notable improvement in Doing Business 2020 are Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria, according to the report closely watched by the global investors.
Among South Asian nations although India still remained at top by improving 14 positions and clinched to 63rd, Pakistan also fared well by securing a place among top ten global business climate reformers and improving 28 positions in a year. Last year, Pakistan was ranked 136th among the 190 nations surveyed.
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The groundwork for bringing an improvement in the country’s ranking had been laid by two former chairmen of the Board of Investment, Naeem Zamindar and Haroon Sharif. Sharif, who few months ago resigned from his position, wrote to Prime Minister Imran Khan in his resignation letter that Pakistan would jump at least 25 positions in 2020 ranking.
Pakistan’s position could have been even better, had the bureaucracy of the State Bank of Pakistan and Ministry of Finance not blocked or delayed issuance of rules and regulations related to two other critical areas. Enforcing contracts and getting credit still remained weak areas of Pakistan despite Parliament enacting laws around three to four years ago. These two institutions delayed implementation of these laws that led to the rejection of two more reforms.
“This rise is significant and made possible by collective and coordinated actions of Federal Government and Provincial Governments of Sindh and Punjab over the past year,” said Illango Patchamuthu, World Bank Country Director for Pakistan.
“The accelerated reform agenda has many noteworthy features to improve quality of regulations, reduce time and streamline processes. This momentum needs to be sustained in the coming years for Pakistan to continue to make progress, said Illango.
The WB country director also played a very proactive role in making Pakistani authorities realize about the importance of the global ranking and provided support to bring these reforms.
The Ease of Doing Business index is mostly used as a guide by foreign investors to learn more about a country, aiding decisions on pouring money into the economy. The report is based on surveys carried out in Lahore and Karachi. The results are based on the work done from November 2018 to June 2019.
The report measures how close each economy is best to global practices in business regulations. On the measure of absolute progress towards best practices, Pakistan has improved the score to 61 from 52.8, suggesting the country did some remarkable work this time around and built on the reforms introduced in the previous year as well.
Pakistan, another top improver, developed an ambitious reform strategy, setting up a national secretariat as well as a prime minister’s reform steering committee to ensure progress, the report acknowledged.
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Most of the programmed reforms evolved around the Doing Business indicators. Doing Business working groups have been set up at both municipal and provincial levels, it added.
In South Asia, India also improved its position by 14 points and stood at 63. Last year its ranking was 77th place in doing business followed by Bhutan 89th, Nepal 94th, Sri Lanka 99th, Maldives 147, Afghanistan 173 and Bangladesh 168th.
International investors consult the report and the Global Competitiveness Index of the World Economic Forum before taking decisions on investment plans.
The WB said that Pakistan made starting a business easier by expanding procedures available through the online one-stop shop. This reform applies to both Karachi and Lahore. Furthermore, Pakistan (Lahore) abolished the Labor Department registration fee.
Pakistan also 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. This reform applies to both Karachi and Lahore.
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. This reform applies to both Karachi and Lahore.
Pakistan (Karachi) made obtaining a construction permit easier and faster by streamlining the approval process and also made construction safer by ensuring that building quality inspections take place regularly. Pakistan (Lahore) 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 permits.
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. This reform applies to both Karachi and Lahore.
Pakistan (Karachi) made property registration faster by making it easier to execute and register a deed at the Office of the Sub-Registrar. Pakistan (Lahore) made registering property easier by increasing the transparency of the land administration system.
