Pakistan was listed among top 10 global improvers in World Bank’s 2017 Doing Business rankings.
According to the World Bank’s Doing Business report 2017, Pakistan made some progress towards ease of doing business for small and medium-sized enterprises. World Bank’s Country Director for Pakistan tweeted:
— Illango (@Illango_WB) October 26, 2016
Among top 10 improvers, yes. However, Pakistan still ranks poorly – at 144 out of 190 countries, with a Distance to Frontier (DTF) score of 51.77. Full scorecard at bottom of this post.
Last year, Pakistan ranked at 148 (according to this year’s methodology), so we are four notches up this year.
India moved up by just one point to 130 this year as compared to 131 ranking last year. There was a widespread disappointment among Indian policymakers and media.
One tweet said: ‘India crawls up only one place to 130 out of 190 in World Bank ease of doing business. So much for all the chest thumping.’ Another:
— Hindustan Times (@htTweets) October 26, 2016
The disappointment in India was evident more so because only 10 days ago at BRICS Summit in Goa, Modi had claimed that ‘we have taken a number of steps for ease of doing business in country and the results are visible.’
— EconomicTimes (@EconomicTimes) October 16, 2016
I was part of the Karachi briefing that BoI chairman Minister Miftah Ismail and PM Delivery Unit (PMDU) organised for contributors from the government departments to DB report. I could sense that the pace of reform was painfully slow.
Fixing things is no rocket science when you are aware of the fault-lines, their cost to the economy and the country’s potential and, particularly, when you also know what to fix and how.
So, what’s stopping Prime Minister Nawaz Sharif, himself from a business background, and Finance Minister Ishaq Dar to make it easy for the world to do business in and with Pakistan?
Apathy perhaps? Or busy with more pressing issue of dealing with a more powerful stakeholder after your government’s continuity? Rightly so?
More about Pakistan economy
Countries are ranked on the basis of the DTF score which is a composite measure of a country’s progress along a series of 10 indicators:
- Starting a business
- Dealing with construction permits
- Getting electricity
- Registering property
- Getting credit
- Protecting minority investors
- Paying taxes
- Trading across borders
- Enforcing contracts
- Resolving insolvency
According to a World Bank press release:
A record 137 economies around the world have adopted key reforms that make it easier to start and operate small and medium-sized businesses.
The developing countries carried out more than 75 percent of the 283 reforms in the past year, with Sub-Saharan Africa accounting for over one-quarter of all reforms.
In its global country rankings of business efficiency, Doing Business 2017 awarded its coveted top spot to New Zealand.
Singapore ranks second in DB 2017, followed by Denmark, Hong Kong, China, Korea, Norway, United Kingdom, United States, Sweden and former Yugoslav Republic of Macedonia.
Have you seen CPEC stories on this blog?
The world’s top 10 improvers, based on reforms undertaken, are:
- Brunei Darussalam
- United Arab Emirates (UAE)
Some other indices on Pakistan
How Pakistan and comparator economies rank on the Ease of Doing Business 2017
In South Asia, five of the region’s eight economies implemented a total of 11 reforms in the past year, compared with nine the previous year.
Pakistan, which was among the world’s top 10 improvers, implemented several reforms this past year, as did India and Sri Lanka.
The bulk of the business reform activity in the region was aimed at facilitating cross-border trade.
However, Afghanistan and Pakistan, stipulate additional hurdles for women entrepreneurs.
Understanding Pakistan Series by Wali