ISLAMABAD: Pakistan continues to improve on ease of doing business (EDB) ranking each year, according to a World Bank report.
However, it notes that the country needs to do a lot more in business regulatory reforms to attract more foreign and local investments as the role of business regulatory reforms in improving the economy is critical, reports WealthPK.
The World Bank report highlights that Pakistan’s economy cannot prosper without decreasing imports and increasing exports. It is to mention here that during the previous fiscal year (2020-21), the country’s trade deficit was $31 billion, which has already shot up to $25 billion so far in the ongoing fiscal year. The trade deficit must be curtailed to attain sustainable economic growth.
It is heartening to note that over the last two years, Pakistan has improved 39 points, ranking 108th from 136th in the ease of doing business ranking.
According to experts, every increase in the EDB ranking of a country can bring a further $44 million to its economy.
The World Bank halted the EDB index in 2021 after different countries attempted to alter data in quest for better rankings in their 2018 and 2020 ease of doing business reports.
Pakistan has been ranked as the top performer in South Asia and the sixth-best reformer in the EDB rankings worldwide.
The country has improved in various EDB indicators, including starting a business, registering a property, getting construction permits, getting electricity, trading across borders, and paying taxes.
As a result of such measures, a company can now be registered in just one day with either the Securities and Exchange Commission of Pakistan or the Federal Board of Revenue.
Construction permits can now be gotten in up to 108 days in Lahore and 136 days in Karachi, which was previously 266 and 261 days, respectively.
Property in Pakistan can now be registered in much less time — 22 days in Lahore and 149 days in Karachi — instead of the previous 25 and 208 days.
The Lahore Electric Supply Company and K-Electric have launched online portals for awarding commercial electricity connections. A firm can now get an electricity connection in 73 days in Lahore and 134 days in Karachi instead of the previous 117 and 185 days, respectively.
Similarly, investors can now pay taxes online, which has significantly reduced the time for tax payment.
A computerised clearance system, WeBOC, has been introduced in trading across borders, which has reduced the time for imports for documentary compliance to 96 hours from 143 hours, while exports for border compliance to 58 hours from 75 hours.
INP
