Jana Malinska Investment Policy Officer city date, 2010 1 http://subnational.doingbusiness.org Doing Business compares business regulations in 183 economies ► Launched 8 years ago. ► Focuses on regulations relevant to the life cycle of a small to mediumsized domestic business based on a standardized case ► Does not measure all aspects of the business environment ► The objective - efficient regulations, accessible to all, and simple to implement What Subnational Doing Business adds ► Expands the DB indicators beyond the most populous city ► Captures local differences in regulations or enforcement ► Includes rules and regulations at all levels of government ► Gives specific locations an opportunity to tell their story ► Provides a tool for locations to compete globally ► Provides information on good practices within the same country that can be easily replicated ► Combines media appeal of DB with active participation of subnational governments in the reform process Doing Business in Pakistan measures 13 cities: 6 previously covered and 7 new ones ► Doing Business in South Asia 2007 established benchmarks for 6 cities. ► Doing Business in Pakistan 2010 tracks reform progress in previously covered cities and measures national and local regulations in a total of 13 cities PREVIOUSLY COVERED NEWLY ADDED Faisalabad, Punjab Lahore, Punjab Karachi, Sindh Peshawar, Khyber Pakhtunkhwa Quetta, Balochistan Sialkot, Punjab Gujranwala, Punjab Hyderabad, Sindh Islamabad, ICT Multan, Punjab Rawalpindi, Punjab Sheikhpura, Punjab Sukkur, Sindh Doing Business in Pakistan measures 6 Doing Business areas: ► Doing Business in Pakistan 2010 tracks reform progress in previously covered cities and measures national and local regulations in 6 areas of the life of a business: (1) Starting a business (2) Dealing with construction permits (3) Registering property (4) Paying taxes (5) Trading across borders (6) Enforcing contracts Data were collected with the help of more than 350 private sector contributors and public sector officials Where is it easier to do business in Pakistan? No single city does well on all indicators… National and local reforms made business easier in all cities measured in 2006 STARTING A BUSINESS: the same number of procedures but time and cost vary STARTING A BUSINESS: fastest in Islamabad, but room for improvement at post-incorporation DEALING WITH CONSTRUCTION PERMITS: relatively fast in Pakistan Local variations in time due to pre-construction procedures and utility connections and local variations in cost due to building permit and completion certificate fees Reforms made it easier to deal with construction permits in Lahore and Sialkot After implementing new building regulations, the time to obtain a building permit decreased in Lahore and Sialkot from 60 days to 45 and 38 days respectively REGISTERING PROPERTY: time and cost vary based on administrative efficiency and local duties Computerization of land records reduced the time to register property in Lahore PAYING TAXES: taxes are relatively low but space for making compliance simpler PAYING TAXES: Total tax rates variations at the province level due to differences in local taxes Due to differences in the taxes set at provincial level (vehicle, property, professional) TRADING ACROSS BORDERS: Time to import and export varies little, costs vary due to transport fees Pakistani exporters spend most of their time on paperwork The time needed to import was reduced in Karachi ENFORCING CONTRACTS: easier in Sukkur and Faisalabad ENFORCING CONTRACTS: High attorney fees in larger business centers A city adopting Pakistan's best practices would rank 69th globally PAKISTAN DB2010 63 105 119 158 143 78 85 Starting a business Dealing with construction permits Registering property Enforcing contracts Paying taxes Trading across Borders out of 183 economies PAKISTAN WITH BEST PRACTICES 59 46 87 138 107 73 69 Starting a business Dealing with construction permits Registering property Enforcing contracts Paying taxes Trading across Borders out of 183 economies Shukria ! ► http://www.doingbusiness.org/Subnational/