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Ease of Doing Business in

Pakistan

Pakistan Download Profile (2027.3KB, pdf)
Region South Asia
Income Category Lower middle income
Population 188,924,874
GNI Per Capita (US$) 1,440
City covered Karachi, Lahore

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 144 148 up
4
51.77 49.48 down
2.29
Starting a Business 141 135 down
6
77.88 77.43 up
0.45
Dealing with Construction Permits 150 150
-
59.07 58.56 up
0.51
Getting Electricity 170 163 down
7
42.05 43.73 down
1.68
Registering Property 169 173 up
4
40.70 39.22 up
1.48
Getting Credit 82 134 up
52
50.00 30.00 up
20.00
Protecting Minority Investors 27 25 down
2
66.67 66.67
-
Paying Taxes 156 154 down
2
53.40 53.74 down
0.34
Trading across Borders 172 172
-
39.41 38.11 up
1.30
Enforcing Contracts 157 156 down
1
43.49 43.49
-
Resolving Insolvency 85 85
-
45.01 43.87 up
1.14

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

32.73

DB 2016 DTF (% points):

32.71

Change in DTF (% points):

up0.02

STANDARD PROPERTY TRANSFER
Property value PKR 7,675,940
City Karachi
Indicator Karachi South Asia OECD high income
Procedures (number) info_outline 8 6.6 4.7
Time (days) info_outline 208 110.7 22.4
Cost (% of property value) info_outline 4.3 6.9 4.2
Quality of the land administration index (0-30) info_outline 5 7.9 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtaining a Non-Objection Certificate

    Agency: District Officer Revenue

    The Deputy District Officer Revenue and the District Officer Revenue, at Town and city level respectively, issue a “No Objection Certificate” in favour of the Seller permitting the sale of the property, provided that the entire amount due and payable in respect of the property has been satisfied.

    2 weeks PKR 1000
    * 2

    Advertisement of transaction in newspapers inviting objections

    Agency: Local Newspaper

    A Public notice in two different newspapers having circulation of 100,000 copies, in English and in Urdu news paper, inviting objections/claims should be placed. After publication, there is a seven-day waiting time for arrival of objections, if any. Advertisement is published in local newspapers (dailies) having a large circulation. Simultaneously, the buyer will verify the authenticity of the documents presented by the seller as well his authority to act on behalf of the company to sell this property. At the same time, there is a checking for any encumbrances.

    one week and one day PKR 10,000
    * 3

    Conduct title search

    Agency: Sub-Registrar's office

    As a part of the due diligence procedure, it is a common practice to search the books and verify whether the counterpart actually owns the property. Lawyers also look into the previous owners. The process is completely manual and does not have cost.

    one week no cost
    4

    Hire deed writer or lawyer to draft sale purchase agreement

    Agency: Deed writer or lawyer

    It is common practice in Pakistan to hire a lawyer to draft the sale purchase agreement.

    3-7 calendar days PKR 5,000-10,000
    5

    Payment of stamp duty, capital value tax, Town tax and registration fee

    Agency: Government Treasury or National Bank of Pakistan

    The following payments must be made: (i) Conveyance stamp duty 3% of property value. (ii) The capital value tax (CVT) decreased from 4% to 2.5% of the property value (Sindh Finance Act, 2010 which came into force on July 1st, 2010 amending the Sindh Urban Immoveable Property Tax Act, 1958, section 4). After the 18th constitutional amendment (April, 2010), the CVT on property was transferred to the provincial governments. CVT is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property. However, where the value of such property is not recorded, the CVT is payable at Rs. 100 per square yard of land area. (iii) 1% of property value for the registration fee. (iv) 1% of the property value for the Town Tax Fees are paid at the Government Treasury or National Bank of Pakistan, an autonomous bank jointly owned by Government of Pakistan and public, who issue receipt of money which is taken to the Stamp office of the Government. The receipt of payment is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.

    1 calendar day 3% of property price (stamp duty) + 1% of property price (registration fee)+ 1% Town Tax + 2.5 % of the property price (Capital value tax)
    Capital value tax is not included into cost estimates.
    6

    Receipt of payment is taken to Stamp Office

    Agency: Stamp Office of the Government

    The receipt of payment obtained in Procedure 4 is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.

    1 calendar day no cost
    7

    Execution and registration of the deed before the registration authority

    Agency: Sub-Registrar of Conveyance/Assurances

    The conveyance deed must be executed before the registering authority. Execution of the deed is done before the Sub-Registrar of Conveyance/Assurances of the area, official responsible under the Registration Act. Registration of the deed automatically follows the execution of sale deed. A receipt is issued immediately, but the deed is delivered a few weeks later. The name of the buyer is recorded in the new deed, showing the change in ownership. The documentation shall include: • Conveyance/Sale Deed (stamped after payment in Procedure 4) • ID of parties • Original title deed of seller • If the parties have authorized someone else through a power of attorney, the power of attorney in original with copies. The buyer will conduct post registration Procedures, such as changing the name at the utility companies, property taxation and municipal services.

    6 months no cost
    8

    Mutation

    Agency: Relevant land authority

    Once the registration process is completed, and the sale deed has been collected from the registrar office, the mutation processes is carried out at the relevant land owning authority for transfer of ownership.

    The mutation is the process of obtaining the new title document. A property mutation is simply the change of title ownership under certain conditions such as sale/purchase or death of an owner and even if the property is bought through a power of attorney (PoA). Through mutation, while the new owner gets the property in his name, the government is able to charge property tax from the right owner.

    one week PKR 1000

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 5.0
    Reliability of infrastructure index (0-8) 0.0
    What is the institution in charge of immovable property registration? Office of Registrar
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? No 0.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? No 0.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? No 0.0
    Transparency of information index (0–6) 1.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, in person 0.0
    Link for online access:
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, in person 0.0
    Link for online access:
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, in person 0.0
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 3.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? No 0.0
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Interested Parties.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Interested Parties.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? District Courts
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? More than 3 years 0.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0