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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):

44.42

DB 2016 DTF (% points):

43.24

Change in DTF (% points):

up1.18

Indicator Karachi South Asia OECD high income
Recovery rate (cents on the dollar) info_outline 41.9 32.6 73.0
Time (years) info_outline 2.8 2.6 1.7
Cost (% of estate) info_outline 4 9.9 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 7 4.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 41.9
    Proceeding After Mirage's default on payment, the BizBank will bring a recovery action (foreclosure proceedings) under Section 9 of the Financial Institutions (Recovery of Finances) Ordinance 2001, against the Mirage at the Banking Court. This is the most effective way for BizBank to recoup its investment with the security interest over Mirage's assets. foreclosure
    Outcome After Court's decision on Mirage's case, BizBank would gain possession of Mirage's assets and sell them piecemeal in a public auction by the court appointed auctioneer. The hotel will stop operating. piecemeal sale
    Time (in years) The foreclosure procedure until BizBank is repaid some or all of the money owed to it takes approximate 2.8 years. BizBank would initiate foreclosure 3 months after Mirage's default. The Court will then review the case, notify all relevant parties, hold a hearing and appoint an official receiver. This period usually takes about 4 months. Then it takes approximate half a year for the court appointed official receiver to finalize creditors' claims and an additional 4 months to have the court's final decision made. The court would then appoint an auctioneer to conduct the sale of Mirage's assets. Execution of the auction sale until BizBank is repaid takes around 1 year. 2.8
    Cost (% of estate) The costs associated with the case would amount to approximately 4% of the value of the debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees (0.1%), attorneys’ fees (2%), costs of notification and publication (<1%), fees of accountants, assessors, inspectors and other professionals (1%), and fees of auctioneers (1%). 4.0
    Answer Score
    Strength of insolvency framework index (0-16) 7.0
    Commencement of proceedings index (0-3) 2.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (b) Debtor may file for liquidation only 0.5
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 3.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? No 0.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.0
    Which creditors vote on the proposed reorganization plan? N/A 0.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 2.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.