PAKISTAN RANKED “TOP 10 IMPROVES” IN WORLD BANK’S EASE OF DOING BUSINESS REPORT
In the recent report issued by the World Bank, it has been indicated that Pakistan has improved exceptionally well in the business sector, making tremendous improvement in the policies for making an easiness in doing business. Pakistan has been declared one of the top 10 countries which are rapidly improving in the business sector for last year, also, Pakistan has jumped 28 places in ease of doing business based on 6 reforms. It has come to 108 from the last year’s rank of 136.
The reason of this positive report is the amendments made by the PTI government and its keen interest in making an easy environment for business and for foreign investors. Right after the general elections 2018, prime minister, Mr Imran Khan stated in his every speech that he will make such amendments which will create a healthy environment for the business sector and he did that through his team, the report issued by World Bank acknowledged the government’s effort and declared that:-
“The country developed an ambitious reform strategy, setting up a national secretariat as well as a prime minister's reform steering committee to ensure progress. 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."
The reasons of improved ranking are due to the improvement in six areas as declared by the World Bank, these areas are
- Starting a new business.
Government launches scheme for providing loans to the citizens, especially to the youth so they can come forward and start their business. The criteria for getting loans are also so easy that it encourages more people to start their business. Just like a new scheme for youth called ‘Prime Minister’s youth business loan’. These schemes will let more people entering into the business or the investment sector setting a positive image in the economy.
- Dealing with construction permits.
A development grant is made simpler after the Sindh Building and Control Authority and The Lahore Development Authority streamlined endorsement work processes and improved the operational productivity of their one-stop shops.
- Registration of property.
Improvement in property registration has also boosted up the business sector, before that the businessman needs to spend a lot of their time and money in getting their property registered, the situation was so bad that if a businessman wants his property to be registered he has to follow six procedures which takes around 25 days and 4.2% of the property value. Because of that Pakistan was ranked 161 in the global index as far as the registration of property was concerned. Whereas , Newzealand which holds first position has only two procedures and requires a single day for property registration. Therefore an improvement in property registration procedure like taking strict measures against corruption has also put an impact on this procedure because the officers responsible for the property registration were involved in delaying the procedure of registration in order to get more money i.e. the black money by the businessmen. The strict measures against those people are also a reason of Pakistan being declared as top10 countries who are rapidly improving the environment for business.
- Getting access to electricity.
Pakistan made getting power simpler by implementing administration conveyance time allotments and by propelling an online entry for new applications. Pakistan likewise expanded the straightforwardness of power tariff changes.
- Tax compliance.
According to World Bank report, the reforms in making tax collection easy are also one of the reasons of this improved ranking. The establishment of ‘online payment modules for value added tax and corporate income tax, and a lower corporate income tax’ has also made the payment of taxes easier.
- Trading across borders.
Upgrading the incorporation of different organizations into an electronic framework and by improving coordination of joint physical reviews at the port has also made favorable conditions for trade in Pakistan that ultimately improve the country’s position in front of world bank as that will improve trade across the boarders resulting in getting more foreign currency and that will ultimately boost up the economy of Pakistan.
With the improved ranking due to reforms in these 6 sectors, the question arises what Pakistan can get from this improvement in rank? The chairman, Board of investment and the business analyst after this report are now predicting that this positive report will help Pakistan to get foreign investment, foreign businessmen who were in any doubt will now start thinking again to begin business in Pakistan as there is example of China in the world who first improve its ranking in the ease for business and then its economy boost up this much that China has now world’s strongest economy.
Working together changes are a little piece of the general venture atmosphere picture where basic move is expected to exhibit the administration's responsibility towards improving the speculation atmosphere, which incorporates supporting physical and administrative foundation, bringing down cost of working together, world-class development approach, optimizing of business exchanges and settling business debts. As indicated by the United Nations Conference on Trade and Development, progression of speculation arrangements and venture motivators represent more than 50 percent of changes that pull in speculation. The key exercise for Pakistan is to appropriately grouping venture atmosphere changes and concocts a world-class mechanical arrangement and motivating forces.