ISLAMABAD: A new policy is being finalised to help investors launch their ventures with ease.
“The draft of the ‘Zero Time to Start Policy’ (ZTTS) is being finalised, and after incorporating inputs from stakeholders, the document will be presented before the cabinet for approval,” said Zulfiqar Ali, Director General of Pakistan Regulatory Modernisation Initiative.
Talking to WealthPK, he said the ZTTS policy was aimed at facilitating foreign and domestic investment by removing the unnecessary bureaucratic and administrative hurdles that slow down the process of starting new business ventures and hinder economic growth.
He said the policy would simplify the process of registering a business venture and minimise delays.
“One of the significant regulatory barriers to investment and doing business in Pakistan is compliance with no-objection certificates, which are commonly considered regulatory barriers in obtaining regulatory approvals to investments and doing business,” he added.
Through this policy, the government plans to replace NOCs requirement for business regulation with a system of compliance verification through an effective mechanism that will operate in federal regulatory agencies adopting this policy and cover related procedures.
The use of NOCs will be replaced progressively at the federal level by a risk-based and inter-agency compliance verification mechanism to facilitate investments and doing business in Pakistan.
The low levels of investment can be attributed to a complex, multi-layered, and opaque regulatory regime that involves enforcement by federal, provincial, and municipal government agencies. Regulatory instruments used under this regime consist of various registrations, licenses, permits, and certificates, including NOCs.
These regulatory requirements significantly increase the cost of doing business.
In the Ease of Doing Business Index (2020), Pakistan is considerably behind peer economies, ranking 108 out of 190. In the regulatory area of Starting a Business, Pakistan ranked 72 out of 190 countries.
The scope of this policy intervention, in line with its vision, will be limited to NOCs required by federal regulatory agencies for incorporation and starting operations of a business activity. This policy covers business registration and authorisation required for business operations. The policy will be applicable on all public sector entities of the federal government that regulate businesses.
Experts believe that the ZTTS policy can help stimulate economic growth by removing unnecessary delays and procedures and by providing a clear and straightforward process for starting new businesses. The policy can help promote entrepreneurship, innovation and job creation. –INP
