International Finance Corporation - World Bank Doing Business Report 2010
Friday, September 11, 2009
The International Finance Corporation (IFC)-World Bank Doing Business Report 2010, on Wednesday reported no improvement in Pakistan doing business and the country continues to be ranked at 85th in the world among 131 countries.
Ease (easiness) in doing business ranking of Pakistan has been determined at 85 in the Doing Business Report 2010 where as in Doing Business Report 2009 Pakistan was also ranked at 85 in the world showing no improvement.
Pakistan's ranking in starting a business has improved by points and the country had been ranked at 63rd in 2010 report whereas Pakistan was ranked 80 in 2009. In Pakistan some 10 procedures are required and it takes some 20 days costing 5.8 percent of income per capita.
Pakistan's ranking in dealing with construction permits have shown deterioration by five points and Pakistan's ranking has been lowered to 105 as against the earlier ranking of 100 in the world. In Pakistan some 12 procedures are required and some 223 days are necessary to complete dealing with construction permits and it costs 716.3 percent of income per capita.
Ease of employing workers in Pakistan has shown no improvement in 2008-09 and the country continued to be ranked at 146 in the world. The country's ranking in difficulty of hiring index (0-100) at 78, rigidity of hours index (0-100) at 20, difficulty of redundancy index at 30, rigidity of employment index (0-100) at 43 and redundancy costs (weeks of salary) at 90.
Pakistan's ranking in ease of registering property have shown decline in its ranking by eight points and country's ranking has been set at 119 as against the earlier 111 in the world. six procedures are required; some 50 days time is required and 7.2 percent of the cost of property like required in Pakistan for registering property.
Pakistan's ranking in getting credit done was down further by two points with new ranking set at 61 as earlier it was ranked at 59 in the world. In getting credit strength of legal rights index (0-10) at six, depth of credit information index (0-6) at four, public registry coverage (percentage of adults) 5.6 and private bureau coverage (percentage of adults) at 1.5.
Pakistan's ranking in protecting investors has also shown decline and the country has been ranked at 27 in new ranking as against earlier 25. Protection of investors index Pakistan ranking extent of disclosure index (0-10) six, extent of director liability index (0-10) six, ease of shareholder suits index (0-10) seven and strength of investor protection index (0-10) 6.3.
Pakistan's ranking in ease of paying taxes has also sown declining trend at country's ranking have done down to 143 in 2010 as against 126 in 2009 showing a decline of 17 percent. In the area Pakistan's ranking in payments (number per year) 47, time (hours per year) 560, profit tax (percentage) 14.3, labour tax and contributions (percentage) 15.0, other taxes (percentage) 2.3 and total tax rate (percentage profit) 31.6.
Pakistan's ranking on ease of trading across borders has gone more difficult and the country has been ranked at 78 in the new report as against earlier ranking of 75. In the area documents required for export (number) at nine, time to export (days) 22, cost to export (dollar per container) 611, documents to import (number) eight, time to import (days) 18, cost to import (dollar per container) 680. Country's ranking in ease of enforcing contracts has also shown declining trend and new ranking assigned to Pakistan is 158 in the world as against earlier ranking of 157 showing decline by one point. For enforcing contracts in Pakistan some 47 procedures are required, it takes 976 days for enforcement and it costs 23.8 percent of the claim amount.
Pakistan's ranking in ease of closing a business stood stagnant at 56 in 2010 as against earlier ranking of 56 in the world with no improvement. Closing business costs 4 percent of the of estate, recovery rate (cents on the dollar) 39.2.
Doing Business 2010: South Asia Picks Up Pace of Business Regulatory Reform 2009 - in a record year for regulatory reform worldwide, most South Asian economies strengthened business regulations and made them more efficient, creating more opportunities for local firms.
A record 131 of 183 economies around the globe reformed business regulations between June 2008 and May 2009, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank. In South Asia, six of eight economies reformed.
Bangladesh, the region's most active reformer, implemented an online company registration system-cutting start-up time by nearly a month-cut corporate income taxes, and expedited trade by introducing an automated customs clearance system at its main port.
India improved its score on the 'closing a business' indicator by taking steps to ease resolution of insolvency cases-a critical area in times of crisis. The recent report, Doing Business in India 2009, which goes beyond Mumbai to look at the applications of business regulations in 17 major cities across India, shows the tremendous potential in India for drawing on home-grown good practices to cut red tape and streamline regulation.
Nepal lowered property transfer costs. Pakistan made it easier to start a business by introducing an e-service registration system. And Sri Lanka improved access to credit information to help expand access to finance.
"In an active year of business regulatory reform, economies in South Asia have picked up their reform pace-though there is still room for more action," said Dahlia Khalifa, an author of the report. "Governments are paying attention to the quality of business regulation to make their economies more competitive and encourage local entrepreneurs. Making it easier to start, operate, and even close a business is always important, but especially during these difficult times."
This year, there were four new reformers among the global top 10: Liberia, the United Arab Emirates, Tajikistan and Moldova. Others include Rwanda, the top global reformer, Egypt, Belarus, the Former Yugoslav Republic of Macedonia, the Kyrgyz Republic, and Colombia. Colombia and Egypt have been top global reformers in four of the past seven years.
Doing business analyses regulations that apply to an economy's businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business. Doing business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.
Labels: Pakistan Economy, ReBlog, World Bank
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