Pakistan has once again set a new record of degradation. This time in the ranking of business friendly countries, thanks to unfavourable economic atmosphere, political polarisation, sit-ins and ill-conceived government policies.
According to a new World Bank report on ‘Doing Business’, Pakistan falls one grade lower — from 127th of last year to 128th of the current year — in the list of business friendly countries. Report classifies 189 countries according to the business environment, putting Singapore at the top of the list, New Zealand at the second, Hong Kong third, Denmark fourth, Korea fifth, Norway sixth, America seventh, Britain eight, Finland ninth and Australia at the 10th position. Pakistan stands at 128 while India, which the West calls as a vibrant economy,is at 142th in the list. In Islamic nations, UAE is at 22th and Malaysia is at 28th in the ranking of business friendly countries.
The report pinpoints several complications in doing business in Pakistan. For example, investors have to go through a lengthy and cumbersome procedure to get permission for a business venture.In addition to that the official rigmarole is always there when it comes to get electricity and gas connections, constructa building or registera property.
Above all, the system of revenue collection is also challenging as investors face problems in payment of taxes.
Apart from security issues, corruption is the first enemy of any business organisation, as the investors cannot even think of running their ventures without paying illegal gratification to the officials concerned. That is not the case of Pakistan alone, but all the third world nations face the same situation. The developed economies have devised amechanism and they go by the book without any political interference in administrative affairs.
It is also noted that tough rules are made in underdeveloped or so-called developing countries, which give unbridled powers to the government officials to twist the law according to their desire. Corruption is rare in Somalia where even phone call charges are less than any country in the region and foreign goods are cheaper than any African country as customs is none existent. But where the government is intact, corrupt elements also show their presence. If the government wants to make Pakistan an attractive business destination, it has to come up with revolutionary plans and there is no point in beating about the bush.