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Home > Country profiles > Pakistan > Articles > Article detail

Doing Business: Punjab’s true picture

Wednesday, 4th January 2018

"Recently, there has been a lot of talk about Pakistan’s deteriorating performance on Doing Business Indicators. According to World Bank’s flagship Doing Business Report 2018, Pakistan slipped by three points and now ranks at 147 out of 190 economies with a Distance to Frontier (DTF) of 51.65 on the Doing Business Index. Experts from various fields have shared different views on the performance of Pakistan on this front. Let us examine the subject and different facts associated with it in detail.

Doing business defines the business regulatory environment of an economy; the higher the ranking, the easier it is to establish, conduct and operate a business. The report measures aspects of business regulation and their implications for firm’s establishment and operations for 190 economies. Doing Business report measures regulations affecting 10 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business report: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business report has included labor market regulation as additional topic but the report has not presented ranking of economies for this indicator.

Out of these 10 areas, three areas including registering property, getting construction permits, contract enforcement fall under provincial domain whereas; two more areas including starting a business and paying taxes partially fall under provincial jurisdiction. It is also pertinent to mention that the Doing Business data of these areas are collected from Lahore and Karachi only wherein; Lahore contributes 35% and Karachi’s share is 65%. Meaning thereby, that Punjab can only contribute maximum to the 35% of the given weightage even if it performs at its full capacity. Therefore, a national Doing Business action plan was prepared at the Federal level in consultation with the World Bank Group and private sector and was disseminated to the Provincial and Federal authorities for its implementation so that national aggregate doing business ranking may be improved. The most interesting part which has never been highlighted before is that Pakistan has actually improved its Distance to Frontier (DTF) by 0.71 Points i.e. from 50.94 to 51.65 in this year but since other countries performed better than Pakistan therefore the overall ranking dropped."

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Language: English
Contact: Iftikhar Ali Sahoo

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