In its ‘Doing Business 2018’ report, the World Bank has ranked Pakistan at 147th out of 190 countries, clearly showing the fact that the country lags far behind its regional competitors in attracting foreign direct investment. The government introduced four business reforms in 2017, which are to facilitate the registration of new businesses, transfer of commercial property and promotion of cross border trade. The reports notes that Pakistan is in the list of South Asian countries which introduced at least 20 business reforms during last year whereas a total of 127 reforms have been enacted in the region during the last 15 years.
Out of four major business reforms, one deals with starting a new business and replaces the need for obtaining a digital signature for a company with a less costly personal identification number and the facility is available both in Lahore and Karachi.The government has ensure transparency in the land registration process in Karachi by publishing online fee schedule and the list of documents which are required for completing any property registration. The country has increased the protection of minority investors by making it easier to sue directors in case of prejudicial transactions with interested parties. This facility is also available in Lahore and Karachi. The government has also developed a new container terminal and enhanced its customs platform for electronic document submission to facilitate import and exportin the two cities.
According to the report covering the regional profile of South Asian countries, Pakistan ranked 172nd in paying taxes;171st in across border trading;156th in enforcing contracts; 82nd in resolving insolvency; 20th in protecting minority investors; 105th in getting credit; 170th in registering property; 167th in getting electricity; 141st in dealing with construction permits; 142nd in starting business and 147th in business environment. The major focus of reforms in South Asia is in the area of protecting minority investors and took measures to protect the minority shareholders. Ironically, the South Asia is the only region which failed to represent in top 50 ranking of the world for ease of doing business. But India is one of the 10 economies which has improved in the most of the areas measured by the doing business report. Pakistan needs capacity building of the officials sitting in the key positions, who are responsible for implementation of the reforms. Any reform can be rendered useless when implementing authorities are incapable of grasping the situation.
