The Board of Investment (BoI) is working on a plan to meet the objectives set in the business improvement plans submitted to the International Monetary Fund (IMF). In the ninth review under the IMF''''s Extended Arrangement 2016, the government committed to improving business climate and to make a viable time-bound implementation plan which was shared with the IMF.
The BoI, being the investment promotion agency, had given the lead role to formulate a workable plan for improving business climate. A technical committee was also constituted comprising representatives of federal & provincial stakeholders and representatives of the business community to work on Ease of Doing Business. Sources however maintained that the Board has yet to build a consensus among the provincial governments and business community on various matters.
According to sources, the plan has to be implemented in two phases. As a pilot project, specific attention would be given to the improvement of various procedures involved in improvement of Karachi and Lahore, which serves as a representative of economy of Pakistan in the World Bank''''s Doing Business Report. During Musharraf''''s government in 2006, Pakistan was ranked 61 in Ease of Doing Business, which gradually slid to 110 in 2014. In 2016, Pakistan''''s ranking was 138 out of 189 countries. Amir Jahangir, Chief Executive Officer Mishal Pakistan, country partner for the Center of Global Competitiveness and Performance at the World Economic Forum told Business Recorder that his organisation had pointed out that World Bank depends on interviewing limited correspondents to collect data for ranking of Pakistan in the report Ease of Doing Business. The methodology of sampling data must be amended, he added.
He maintained that BoI is not an independent ministry and it has to follow the procedures in getting registration of companies and utility services. Serious efforts are needed for creation of one window operation facility which is also part of BOI mandate, he added.
The pilot project is focused on the five business indicators mentioned in the ''''Ease of Doing Business Report'''' of the World Bank. The focus of the plan is on starting a business, dealing with construction permits, paying taxes, trading across borders and enforcing contracts.
The action plan of BoI is focusing on simplifying business registration, digitalizing registering property, streamlining construction permits, simplifying tax regime, simplifying procedures for getting electricity, improving investment regulatory framework for resolving insolvency, getting credit and resolving disputes, improving trading across the borders, promoting alternate dispute resolutions (ADRs), and simplifying work visa & branch/liaison offices procedures.
"Our plan is to focus on streamlining of procedures by setting up one-stop shops, making procedures simpler and faster by introducing technology and reducing or eliminating minimum capital requirements. We have extensive programs to address solvency laws, bankruptcy laws, enforcing contracts and protecting investors," stated Chairman BOI Dr Miftah Ismail.
Virtual one-stop-shop (VOSS), integrating registrations of SECP, the FBR and EOBI has already been became operational and the BOI has also linked the VOSS on BOI website to facilitate the investors to use one web portal for registrations of their businesses in Pakistan. To facilitate registering property, digitalization of land record in three provinces is almost completed. Lahore Development Authority is working to streamline the whole procedure, integrating required NOCs from different organisations.
FBR has launched the integrated end-to-end IT solution (IRIS) on the eight processes ie registration, declaration, assessment, rectification, penalty, default surcharge, refunds and exemption certificates. New web-based software for custom clearance (WeBOC) has been launched in Port Qasim to improve customs clearances. The FBR with the support of the World Bank initiated a pilot reforms project at Wagha Border to facilitate importers and exporters. Provincial governments are also working on the concept of streamlining provincial taxes to eliminate or merge those taxes which have fewer contributions in the provincial revenue and also establishing citizen facilitation centres for paying different taxes, fees and contributions at one place.
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