Pakistan

Ease of Doing Business in

Pakistan

This page shows summary Doing Business 2012 data for Pakistan. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. 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 173,383,000
GNI Per Capita (US$) 1,050.00
Doing Business 2012 Rank Doing Business 2011 Rank Change in Rank
105 96 down -9
Topic Rankings DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 90 86 up -4
Dealing with Construction Permits 104 100 up -4
Getting Electricity 166 170 up 4
Registering Property 125 125 No change
Getting Credit 67 64 up -3
Protecting Investors 29 28 up -1
Paying Taxes 158 116 up -42
Trading Across Borders 75 75 No change
Enforcing Contracts 154 155 up 1
Resolving Insolvency 74 71 up -3

Economy Profile

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Starting a Business

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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 2012 Rank 90 DB 2011 Rank 86 Change in Rank down-4
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 23 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)
11.2 21.6 4.7

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 19.1 14.1
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 fee PKR 200)
2 Pay the fees for name registration and company incorporation using bank challans at the designated bank (MCB) 1 day inlcuded in procedure 2 (name verification fees) and procedure 3 (registration fees)
3 Register the company with the Securities & Exchange Commission of Pakitan (SECP) through online E-services 2 days PKR 6000 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 650 (certificate charges) + PKR 126.75 (federal excise duty 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.
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