09-17-2005, 01:30 AM
<u><b>Pakistan among top reformers</b></u>
<i><b>Nadeem Malik</b></i>
<b>Link http//jang.com.pk/thenews/</b>
ISLAMABAD It is easier to start up or wind up a business, hire and fire workers, in Pakistan than India, says a latest report of the World Bank.
The report Doing Business 2006 included Pakistan in one of the 12 top reformers in the world. The bank gives Pakistan an overall ranking of 60 on the basis of its score in 10 different indices, against 116 for India, 91 for China and 113 for Philippines out of the 155 economies studied. The annual publication of the bank is considered an important document that sets country rankings covering various aspects of doing business.
For Pakistan, the challenges of launching a business include 11 steps for entrepreneurs to launch a business over 24 days on average, at a cost equal to 18.6 percent of gross national income (GNI) per capita. There is no minimum deposit requirement to obtain a business registration number. For India, the number of steps remains 11, but it takes 71 days to go through this process, at a cost equal to 61.7 percent of GNI per capita. The regional average is 7 steps and 35 days to launch a business.
The time and cost required to resolve bankruptcies in Pakistan take 2.8 years and costs 4 percent of the estate value. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm is 44.33. In India, the process takes 10 years and costs 9 percent of the estate value. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm is 12.82.
The second benchmark deals with licenses. The steps, time, and costs of complying with licensing and permit requirements for ongoing operations in Pakistan are 12 steps and 218 days to complete the process, and costs 1,170.7 percent of income per capita. In India, it takes 20 steps and 270 days to complete the process, and costs 678.5 percent of income per capita.
The regional average is 195 days and 385.9 percent of income per capita. The difficulties that employers in Pakistan face in hiring and firing workers are Difficulty of Hiring Index 67; Difficulty of Firing Index 30; Rigidity of Hours Index 40; and Rigidity of Employment Index 46.
For India Difficulty of Hiring Index 56; Difficulty of Firing Index 90; Rigidity of Hours Index 40; and Rigidity of Employment Index 62. The regional average for Rigidity of Employment Index is 38.5.
The ease with which businesses can secure rights to property in Pakistan is five steps and 49 days to register property. The cost to register property there is 3.2 percent of overall property value. In India, it takes six steps and 67 days to register property. The cost to register property there is 8.9 percent of overall property value. The regional average is 6 steps and 124 days.
Measures on credit information sharing and the legal rights of borrowers and lenders in Pakistan are Legal Rights Index 4; Credit Information Index 4; Public registry coverage (percent adults) 0.3; Private bureau coverage (percent adults) 0.9. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau. For India these indices are Legal Rights Index 5; Credit Information Index 2; Public registry coverage (percent adults) 0; Private bureau coverage (percent adults) 1.7.
Investors' protection for Pakistan is described as follows transparency of transactions (Extent of Disclosure Index) 6; liability for self-dealing (Extent of Director Liability Index) 6; shareholders' ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) 7; and Strength of Investor Protection Index 6.3. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection. For India these indices are Extent of Disclosure Index 7; Extent of Director Liability Index 4; Ease of Shareholder Suits Index 7; and Strength of Investor Protection Index 6.
The effective tax that a medium size company in Pakistan must pay or withhold within a year is 32 payments, spend 560 hours, and pay 57.4 percent of gross profit in taxes. For India it is 59 payments, spend 264 hours, and pay 43.2 percent of gross profit in taxes.
The costs and procedures involved in importing and exporting a standardized shipment of goods in Pakistan are Documents for export (number) 8; Signatures for export (number) 10; Time for export (days) 33; Documents for import (number) 12; Signatures for import (number) 15; and Time for import (days) 39.
For India these rigidities are Documents for export (number) 10; Signatures for export (number) 22; Time for export (days) 36; Documents for import (number) 15; Signatures for import (number) 27; and Time for import (days) 43.
The ease or difficulty of enforcing commercial contracts in Pakistan involves 46 steps and 395 days to enforce contracts there. The cost of enforcing contracts is 35.2 percent of debt. For India, it takes 40 steps and 425 days to enforce contracts there. The cost of enforcing contracts is 43.1% of debt.
Overall the report ranked New Zealand as the easiest country in the world to do business with, followed by Singapore and the United States. Canada was fourth, followed by Norway in fifth spot. Australia was rated sixth, Hong Kong was seventh, Denmark eighth, the United Kingdom ninth and Japan was 10th. Pakistan was also among the 12 top reformers over the past year.
<i><b>Nadeem Malik</b></i>
<b>Link http//jang.com.pk/thenews/</b>
ISLAMABAD It is easier to start up or wind up a business, hire and fire workers, in Pakistan than India, says a latest report of the World Bank.
The report Doing Business 2006 included Pakistan in one of the 12 top reformers in the world. The bank gives Pakistan an overall ranking of 60 on the basis of its score in 10 different indices, against 116 for India, 91 for China and 113 for Philippines out of the 155 economies studied. The annual publication of the bank is considered an important document that sets country rankings covering various aspects of doing business.
For Pakistan, the challenges of launching a business include 11 steps for entrepreneurs to launch a business over 24 days on average, at a cost equal to 18.6 percent of gross national income (GNI) per capita. There is no minimum deposit requirement to obtain a business registration number. For India, the number of steps remains 11, but it takes 71 days to go through this process, at a cost equal to 61.7 percent of GNI per capita. The regional average is 7 steps and 35 days to launch a business.
The time and cost required to resolve bankruptcies in Pakistan take 2.8 years and costs 4 percent of the estate value. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm is 44.33. In India, the process takes 10 years and costs 9 percent of the estate value. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm is 12.82.
The second benchmark deals with licenses. The steps, time, and costs of complying with licensing and permit requirements for ongoing operations in Pakistan are 12 steps and 218 days to complete the process, and costs 1,170.7 percent of income per capita. In India, it takes 20 steps and 270 days to complete the process, and costs 678.5 percent of income per capita.
The regional average is 195 days and 385.9 percent of income per capita. The difficulties that employers in Pakistan face in hiring and firing workers are Difficulty of Hiring Index 67; Difficulty of Firing Index 30; Rigidity of Hours Index 40; and Rigidity of Employment Index 46.
For India Difficulty of Hiring Index 56; Difficulty of Firing Index 90; Rigidity of Hours Index 40; and Rigidity of Employment Index 62. The regional average for Rigidity of Employment Index is 38.5.
The ease with which businesses can secure rights to property in Pakistan is five steps and 49 days to register property. The cost to register property there is 3.2 percent of overall property value. In India, it takes six steps and 67 days to register property. The cost to register property there is 8.9 percent of overall property value. The regional average is 6 steps and 124 days.
Measures on credit information sharing and the legal rights of borrowers and lenders in Pakistan are Legal Rights Index 4; Credit Information Index 4; Public registry coverage (percent adults) 0.3; Private bureau coverage (percent adults) 0.9. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau. For India these indices are Legal Rights Index 5; Credit Information Index 2; Public registry coverage (percent adults) 0; Private bureau coverage (percent adults) 1.7.
Investors' protection for Pakistan is described as follows transparency of transactions (Extent of Disclosure Index) 6; liability for self-dealing (Extent of Director Liability Index) 6; shareholders' ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) 7; and Strength of Investor Protection Index 6.3. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection. For India these indices are Extent of Disclosure Index 7; Extent of Director Liability Index 4; Ease of Shareholder Suits Index 7; and Strength of Investor Protection Index 6.
The effective tax that a medium size company in Pakistan must pay or withhold within a year is 32 payments, spend 560 hours, and pay 57.4 percent of gross profit in taxes. For India it is 59 payments, spend 264 hours, and pay 43.2 percent of gross profit in taxes.
The costs and procedures involved in importing and exporting a standardized shipment of goods in Pakistan are Documents for export (number) 8; Signatures for export (number) 10; Time for export (days) 33; Documents for import (number) 12; Signatures for import (number) 15; and Time for import (days) 39.
For India these rigidities are Documents for export (number) 10; Signatures for export (number) 22; Time for export (days) 36; Documents for import (number) 15; Signatures for import (number) 27; and Time for import (days) 43.
The ease or difficulty of enforcing commercial contracts in Pakistan involves 46 steps and 395 days to enforce contracts there. The cost of enforcing contracts is 35.2 percent of debt. For India, it takes 40 steps and 425 days to enforce contracts there. The cost of enforcing contracts is 43.1% of debt.
Overall the report ranked New Zealand as the easiest country in the world to do business with, followed by Singapore and the United States. Canada was fourth, followed by Norway in fifth spot. Australia was rated sixth, Hong Kong was seventh, Denmark eighth, the United Kingdom ninth and Japan was 10th. Pakistan was also among the 12 top reformers over the past year.
