Pakistan

Ease of Doing Business in

Pakistan

This page summarizes Doing Business 2014 data for Pakistan. The first table lists the overall "Ease of Doing Business" rank (out of 189 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

Region South Asia
Income Category Lower middle income
Population 179,160,111
GNI Per Capita (US$) 1,260
City covered Karachi
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
110 106 down -4

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
57.93 57.76 down 0.17

Subnational Data


 

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 2014 Rank 105 DB 2013 Rank*** 99 Change in Rank down-6
DB 2014 DTF** (% points) 78.20 DB 2013 DTF** (% points) 78.26 Change in DTF** (% points) down-0.06

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

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).

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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.

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Time (days)
21.0 16.2 11.1

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.

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Cost (% of income per capita)
10.4 19.8 3.6

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.

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Paid-in Min. Capital (% of income per capita)
0.0 15.8 10.4
No. Procedure Time to Complete Associated Costs
1 Reserve a company name online via the Securities and Exchange Commission of Pakistan (SECP) E-services website 1 day PKR 200 (E-services online name reservation)
2 Pay the name reservation and company incorporation fees at the Muslim Commercial Bank (MCB) 1 day included in procedure 1 (name reservation fees) and procedure 3 (registration fees)
3 Obtain a digital signature from the National Institutional Facilitation Technologies (NIFT) system of SECP 1 day PKR 837 (certificate charges) + PKR 163 (sales tax at 19.5%) + PKR 500 (validation charges)
4 Complete online registration on the Securities & Exchange Commission of Pakistan (SECP) e-portal 2 days PKR 8500 registration fee + PKR 2400 filing fees of Form 1, Form 21, Form 29, and Copy of the memorandum and articles of association
5 Apply for a national tax number (NTN) and register for income tax 2 days no charge
6 Apply 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 Labor 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 topics including Getting Electricity across all economies 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...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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