Pakistan

Ease of Doing Business in

Pakistan

This page summarizes Doing Business 2013 data for Pakistan. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

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Economy Summary
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Region South Asia
Income Category Lower middle income
Population 176,745,364
GNI Per Capita (US$) 1,120
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
107 104 down -3

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
59.3 59.3 0.0
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 98 97 up -1
Dealing with Construction Permits 105 105 No change
Getting Electricity 171 166 up -5
Registering Property 126 126 No change
Getting Credit 70 67 up -3
Protecting Investors 32 29 up -3
Paying Taxes 162 160 up -2
Trading Across Borders 85 80 up -5
Enforcing Contracts 155 156 up 1
Resolving Insolvency 78 77 up -1

Economy Profile

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Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2013 Rank 98 DB 2012 Rank 97 Change in Rank down-1
DB 2013 DTF** (% points) 78.5 DB 2012 DTF** (% points) 78.4 Improvement in DTF** (% points) up0.1
YearNew business densityNumber of new limited liability companies
2011 0.635,314
Indicator Pakistan South Asia OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

View methodology Procedures (number)
10 7 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

View methodology Time (days)
21 19 12

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology Cost (% of income per capita)
9.9 21.6 4.5

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology Paid-in Min. Capital (% of income per capita)
0.0 17.8 13.3
No. Procedure Time to Complete Associated Costs
1 Obtain approval of company name through the Securities and Exchange Commission of Pakistan (SECP) E-service website 1 day PKR 200 (E-services online name reservation)
2 Pay the fees for name registration and company incorporation using bank challans at the designated bank (MCB) 1 day inlcuded in procedure 1 (name verification fees) and procedure 3 (registration fees)
3 Register the company with the Securities & Exchange Commission of Pakistan (SECP) through online E-services 2 days PKR 6500 registration fee + PKR 2400 filing fee ( Form 1, Form 21 & form 29 & copy of memorandum of association)
4 Obtain digital signatures from the National Institutional Facilitation Technologies (NIFT) through the SECP e-services 1 day PKR 837 (certificate charges) + PKR 163 (sales tax at 19.5%) + PKR 500 (validation charges)
5 Apply for a national tax number (NTN) and register for income tax 2 days no charge
6 Register for sales tax by applying for a Sales Tax Number (STN) at the tax facilitation center of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) in Karachi 1 day no charge
* 7 Register for Professional Tax with the Excise & Taxation Department of the District 7 days (simultaneous with the previous procedure) no charge
* 8 Register with the Sind Employees Social Security Institution (SESSI) 11 days (simultaneous with the previous procedure) no charge
* 9 Register with Employees Old-Age Benefits Institution (EOBI). 11 days (simultaneous with the previous procedure) no charge
* 10 Register under the West Pakistan Shops and Establishment Ordinance 1969 with the Labour Department of the District 7 days (simultaneous with the previous procedure) PKR 10
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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