Ease of Doing Business
Pakistan ranks at 136 in terms of ease of doing business as per world bank’s ease of doing business index. Previously Pakistan had a ranking of 147. A 7.48% improvement was seen during 2018.
Ease of doing business is a study of various activities that are very important to carry out business in a country such as starting up a business, building a warehouse, paying taxes, getting electricity, importing and exporting goods etc.
Cost of starting up a business has reduced from 8% to 7% of GNI per capita.
Cost of exports also decreased both in term of border compliance and documentary compliance from USD 406 to 356 and USD 257 to 118 respectively. Cost of imports reduced significantly. Cost of imports reduced from USD 997 to 476 in terms of border compliance and from USD 735 to 250 in terms of documentary compliance.
Time to import remained same for documentary compliance (143 hours) but border compliance is now 9 hours faster which previously required 129 hours.
Preparing and paying taxes requires a lot of time and effort. Government has been trying hard to make the process simple and efficient which paid off in 2018. The process now takes 294 hours instead on 312 hours.
Pakistan has pretty high number of various taxes, 47 to be precise. India has 12, China has 7.
It now requires 161 days to get electricity. Previously it took 181 days. However Pakistan is among top 12 countries where it takes so long to get electricity. India takes 55 days and china only requires 34.
Pakistan is among top ten worst countries for registration of property. It takes whooping 144 days to purchase and register a property in Pakistan which previously required 155 days. But to show you how inefficient the system is, neighboring china taken only 9 days.
Warehouse is another important unit of business. We are not very good at this too. There were 15 number of procedures required to build a warehouse which increased to 19 in 2018.
Tags: Ease of doing business