The World Bank is an international financial institution that gives grants to the governments of poorer countries for the purpose of pursuing capital intensive project projects benefitting the country at large. It provides loans to various governments for irrigation, agriculture, water supply, health, education, etc. It promotes foreign investments to other organizations by guaranteeing the loans. Simply speaking, it plays a key role for development in developing countries. The ease of doing business report is an annually published report by the World Bank.
Ease of doing business report:
The ease of doing business report is an annually published report by the World Bank. It is among annual flagship reports by WB. The report is meant to measure regulations directly affecting businesses. Ranking of a country in this report indicates the nation’s proximity to large markets, quality of infrastructure, inflation, or crime.
Parameters to calculate the Ease of Doing Business Rank
It has been evaluated that, fewer the regulations of a country the better its ranking will be. Therefore, the key to attain perfection is to cut hindering business activities in the name of various regulations and procedures. Following are the 10 parameters which are used to calculate doing business rank (score). On the basis of these parameters, position of a country will be ranked in the report.
- Ease of starting a business
- Dealing with construction permits
- Getting electricity
- Registering your property
- Getting credit for your business
- Protecting minority investors
- Paying taxes
- Trading across borders
- Enforcing contracts
- Resolving insolvency
Ease of doing business report and Pakistan:
Significance of Pakistan’s strategic location is an undeniable fact. Its location has been its greatest benefit over the years, although views differ as to how much Pakistan has been able to use the excellent location to its benefit. Pakistan is a great (efficient) route for transportation for many countries. It attracts many investors from all over the world – particularly from China under the umbrella of CPEC.
Recently, The World Bank (WB) published its “Ease of Doing Business” report. According to this report Pakistan’s rank has greatly improved. Out of a total 190 big and small economies of the world, Pakistan improved its ranking manifold and was placed at 108th position against 136th position previously. It has also been declared among top ten countries that have made reforms and improved their business environment at a fast pace. Pakistan improved in six areas which included;
- Starting a business,
- Dealing with construction permits
- Getting electricity
- Registering property
- Paying taxes
- Trading across borders
Experts reviewed that, the launching of online portals for new commercial connections made getting electricity easier, and tax paying played a great role to make a mark. Moreover, Pakistan made trading across borders easier by enhancing the integration of various agencies into an electronic system and by improving coordination of joint physical inspections at the port.
The report highlighted that the country was consistently closing the gap between its regulatory environment and global good practices. The two main cities of Karachi and Lahore played a vital role for this improvement. On that occasion government said to provide conducive business environment in all four province for providing equal business opportunities all over the country. Besides Pakistan, the other countries that were included in the top ten list included Saudi Arabia, Kuwait, Jordan, Nigeria, India, China, Bahrain, Tajikistan, and Togo.
WAY TO GO!
Pakistan Zindabad.
