Doing Business 2018 Pakistan

Economy Pro le of Pakistan

Doing Business 2018 Indicators
(in order of appearance in the document)

Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and
permits safety mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and
the transparency of tariffs

Registering property Procedures, time and cost to transfer a property and the quality of the land administration system

Getting credit Movable collateral laws and credit information systems

Protecting minority investors Minority shareholders rights in related-party transactions and in corporate governance

Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes

Trading across borders Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework
for insolvency

Labor market regulation Flexibility in employment regulation and aspects of job quality

About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and
selected cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations
applying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides
quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings
of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on
the ease of doing business, it does present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and
over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business
climate of each economy.

In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent
cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend
reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other
cities in the economy or region and with the 190 economies that Doing Business has ranked.

The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11
indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except
for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,
Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second
largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The
project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide
an objective basis for understanding and improving the regulatory environment for business around the world. Page2
 for insolvency

Doing Business
Labor market 2018
regulation Pakistan
Flexibility in employment regulation and aspects of job quality

About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and
selected cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations
applying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides
quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings
of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on
the ease of doing business, it does present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and
over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business
climate of each economy.

In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent
cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend
reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other
cities in the economy or region and with the 190 economies that Doing Business has ranked.

The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11
indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except
for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,
Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second
largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The
project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide
an objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the best
performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economys
distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the
frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the
aggregate distance to frontier scores, rounded to two decimals.

More about Doing Business (PDF, 5MB)

Ease of Doing Business in Region South Asia DB2018Rank

190 1
Pakistan Income Category Lower middle income
147
Population 193,203,476 DB2018DistancetoFrontier(DTF)
GNI Per Capita (US$) 1,510 0 100

51.65
City Covered Karachi

DB 2018 Distance to Frontier (DTF)

0 100
65.29:China(Rank:78)

60.76:India(Rank:100)

53.64:RegionalAverage(SouthAsia)

51.65:Pakistan(Rank:147)

40.99:Bangladesh(Rank:177)
Page3
aggregate distance to frontier scores, rounded to two decimals.

More
Doingabout Doing Business
Business 2018 (PDF, 5MB)
Pakistan

Ease of Doing Business in Region South Asia DB2018Rank

190 1
Pakistan Income Category Lower middle income
147
Population 193,203,476 DB2018DistancetoFrontier(DTF)
GNI Per Capita (US$) 1,510 0 100

51.65
City Covered Karachi

DB 2018 Distance to Frontier (DTF)

0 100
65.29:China(Rank:78)

60.76:India(Rank:100)

53.64:RegionalAverage(SouthAsia)

51.65:Pakistan(Rank:147)

40.99:Bangladesh(Rank:177)

Note: The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the best performance observed on each of
the indicators across all economies in the Doing Business sample since 2005. An economys distance to frontier is re ected on a scale from 0 to 100, where 0
represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Pakistan

1
20
28

55
82
82
Rank

105
109

142 141
136
156
167 170 171
163 172

190

Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits

Distance to Frontier (DTF) on Doing Business topics - Pakistan

100

78.61
80 71.67

59.72
60
DTF

45.00 46.43 45.83

42.39 41.41 41.94 43.49
40

20

Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Change:+0.34 Change:+0.71 Change:0.00 Investors Change:-0.19 Borders Change:0.00 Change:+0.82
Change:+0.75 Permits Change:+1.67 Change:+2.53
Change:+0.50

Starting a Business
Page4
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized
 a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Change:+0.34 Change:+0.71 Change:0.00 Investors Change:-0.19 Borders Change:0.00 Change:+0.82
Change:+0.75 Permits Change:+1.67 Change:+2.53
Doing Business 2018 Pakistan
Change:+0.50

Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized
limited liability company to start up and formally operate in economys largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically
owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and
employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting
a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned
by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores
obtained for each of the component indicators.

The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to legally start and operate a To make the data comparable across economies, several assumptions
company (number) about the business and the procedures are used. It is assumed that any
required information is readily available and that the entrepreneur will pay
Pre-registration (for example, name verification
no bribes.
or reservation, notarization)
Registration in economys largest business city The business:
- Is a limited liability company (or its legal equivalent). If there is more than
Post-registration (for example, social security
one type of limited liability company in the economy, the most common
registration, company seal)
among domestic rms is chosen. Information on the most common form is
Obtaining approval from spouse to start business
obtained from incorporation lawyers or the statistical o ce.
or leave home to register company
- Operates in the economys largest business city and the entire o ce
Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11
can impact company registration, company economies the data are also collected for the second largest business city.
operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal
identity card entity; and has a start-up capital of 10 times income per capita and has a
Time required to complete each procedure turnover of at least 100 times income per capita.
(calendar days) - Performs general industrial or commercial activities, such as the
production or sale of goods or services to the public. The business does
Does not include time spent gathering not perform foreign trade activities and does not handle products subject
information
to a special tax regime, for example, liquor or tobacco. It does not use
Each procedure starts on a separate day (2 heavily polluting production processes.
procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real
Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent
as day to 1 times income per capita.
Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts.
document is received - Has at least 10 and up to 50 employees one month after the
commencement of operations, all of whom are domestic nationals.
No prior contact with officials
- Has a company deed 10 pages long.
Cost required to complete each procedure (% of
The owners:
income per capita)
- Have reached the legal age of majority. If there is no legal age of majority,
Official costs only, no bribes they are assumed to be 30 years old.
No professional fees unless services required by - Are sane, competent, in good health and have no criminal record.
law or commonly used in practice - Are married and the marriage is monogamous and registered with the
authorities.
Paid-in minimum capital (% of income per capita)
- Where the answer di ers according to the legal system applicable to the
Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there
before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the
incorporation majority of the population.

Page5
Starting a Business - Karachi
 before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the
incorporation majority of the population.
Doing Business 2018 Pakistan

Starting a Business - Karachi

Standardized Company

Legal form Private Limited Liability Company

Paid-in minimum capital requirement PKR 0

City Covered Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Procedure Men (number) 12 7.9 4.9 1.00 (New Zealand)

Time Men (days) 17.5 15.4 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 7.6 21.4 3.1 0.00 (United Kingdom)

Procedure Women (number) 12 8.1 4.9 1.00 (New Zealand)

Time Women (days) 17.5 15.5 8.5 0.50 (New Zealand)

Cost Women (% of income per capita) 7.6 21.4 3.1 0.00 (United Kingdom)

Paid-in min. capital (% of income per capita) 0.0 0.2 8.7 0.00 (113 Economies)

FigureStartingaBusinessinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

85.47: China (Rank: 93)

80.67: Bangladesh (Rank: 131)

78.61: Karachi

75.40: India (Rank: 156)

Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureStartingaBusinessinKarachiProcedure,TimeandCost

Time Cost

16
6
14
ome per capita)

5
12
(days)

10 Page6
4
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

Doing Business 2018 Pakistan

FigureStartingaBusinessinKarachiProcedure,TimeandCost

Time Cost

16
6
14

Cost (% of income per capita)

5
12
Time (days)

10 4

8
3

6
2
4

1
2

0 0
1 2 3 4 5 6 7 *8 *9 * 10 * 11 * 12
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

DetailsStartingaBusinessinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Reserve a company name online via the Securities and Exchange 1 day PKR 200
Commission of Pakistan (SECP) E-services website
Agency : Securities and Exchange Commission of Pakistan (SECP)

The entrepreneur can check the availability of the desired company name via
the website of the Securities and Exchange Commission of Pakistan (SECP).
To reserve a company name, the applicant proposes one or more names in
order of preference, and submits the application form to SECP either online
or in person. The o cial con rmation (or rejection) of the chosen name and
its availability is received by email or via courier upon payment of the name
reservation fee of PKR 200 (online name reservation) or PKR 500 (o ine
name reservation) at the SECP-designated bank. The approved name is
reserved for 90 days, during which the company must be incorporated.

SECP recently introduced the Fast Track Registration Services (FTRS),

processing the company name reservation applications within 4 hours of
submission for an expedited fee of PKR 500 online and PKR 1,000 in person
payable in addition to the normal fees.

2 Pay the name reservation and company incorporation fees at the MCB 1 day included in
Bank procedure 1 (name
Agency : Bank (MCB) reservation fees) and
procedure 3
The company must pay the name reservation and incorporation fees at the
(registration fees)
designated MCB Bank (formerly Muslim Commercial Bank) or at the United
Bank Limited. The form indicating the amount due is obtained from SECP
either online (downloaded) or on-site, or from the bank.
Page7
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

Doing Business 2018 Pakistan

DetailsStartingaBusinessinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Reserve a company name online via the Securities and Exchange 1 day PKR 200
Commission of Pakistan (SECP) E-services website
Agency : Securities and Exchange Commission of Pakistan (SECP)

The entrepreneur can check the availability of the desired company name via
the website of the Securities and Exchange Commission of Pakistan (SECP).
To reserve a company name, the applicant proposes one or more names in
order of preference, and submits the application form to SECP either online
or in person. The o cial con rmation (or rejection) of the chosen name and
its availability is received by email or via courier upon payment of the name
reservation fee of PKR 200 (online name reservation) or PKR 500 (o ine
name reservation) at the SECP-designated bank. The approved name is
reserved for 90 days, during which the company must be incorporated.

SECP recently introduced the Fast Track Registration Services (FTRS),

processing the company name reservation applications within 4 hours of
submission for an expedited fee of PKR 500 online and PKR 1,000 in person
payable in addition to the normal fees.

2 Pay the name reservation and company incorporation fees at the MCB 1 day included in
Bank procedure 1 (name
Agency : Bank (MCB) reservation fees) and
procedure 3
The company must pay the name reservation and incorporation fees at the
(registration fees)
designated MCB Bank (formerly Muslim Commercial Bank) or at the United
Bank Limited. The form indicating the amount due is obtained from SECP
either online (downloaded) or on-site, or from the bank.

The SECP launched online payment facility for its stakeholders in April 2014,
therefore, online ling and payment is now possible for SECPs online lers,
without visiting the Bank or the SECP o ces.

3 Obtain PIN for company registration Less than one day PKR 100
Agency : Securities and Exchange Commission of Pakistan (SECP) (online procedure)

As of April 2017, SEC has allowed for the registration for company
incorporation to be submitted through inputting the PIN number instead of
the digital certi cate. As such, companies now just need to input the
following information into the system his/her 13 digit CNIC Number /NICOP
/POC without dashes. The user will also enter his/her personal details i.e. Full
Name, Fathers/Spouse Name, Gender, Date of Birth, Current Address,
Permanent Address, Mobile Number, Email Address. The user will then enter
his/her proposed password. In next section, the user is required to select
three security Questions and then provide answer to those questions. The
user will then click the Signup button to proceed further. After veri cation,
the system will send security code to User on his/her provided Mobile
Number and also on his/her email address. Upon submission, the system
will send PIN to User on the provided Mobile No. through SMS and also on
the provided Email Address. This system generated PIN will be required for
company incorporation.

4 Complete online registration on the Securities & Exchange Commission 2 days See comments
of Pakistan (SECP) e-portal
Agency : Securities and Exchange Commission of Pakistan (SECP) Page8
 the provided Email Address. This system generated PIN will be required for
Doing company incorporation.
Business 2018 Pakistan

4 Complete online registration on the Securities & Exchange Commission 2 days See comments
of Pakistan (SECP) e-portal
Agency : Securities and Exchange Commission of Pakistan (SECP)

Registration can either be completed online or in person at SECP. The

following documents are required for submission:
a. Form 1: Declaration of compliance
b. Form 21: Identi cation of the location of the o ce
c. Form 29: Particulars of directors, secretary, chief accountant, auditors,
and others
d. One copy of the Memorandum and Articles of Associations with the
signature of each member (in presence of a witness)

The fees for incorporation of a company was updated on May 24, 2016
according to the S.R.O 448. The fees depend on the authorized capital as:

- Online submission: PKR 1,000 for registration of a company whose nominal

share capital does not exceed PKR 100,000 and an additional fee of PKR 500
for every PKR 100,000 of nominal share capital or part thereof, up to PKR
10,000,000. The online ling fee is PKR 400 per document.

A con rmation of the online or physical submission is received instantly, and

the actual certi cate a few days later via email or courier. The entrepreneur
can register with any Company Registration O ce, irrespective of the
jurisdiction. All regional SECP o ces are computerized. In February 2012,
SECP launched the Fast Track Registration Services (FTRS), under which the
incorporation of a company can take place within 4 hours for an expedited
fee of PKR 20,000 for on-site incorporation and PKR 10,000 for online
incorporation payable in addition to the normal fees above. To register a
company online, the entrepreneur must rst obtain a digital signature
through the National Institutional Facilitation Technologies (NIFT) system. If
the application is received with less than four hours remaining in the
working day, the same shall be disposed of in the next working day.

5 Open a bank account for tax registration 1 day No charge

Agency : Bank

A bank account number in the name of the company is needed in order to

register for taxes. A copy of the registration certi cate is needed in order to
open a bank account.

6 Apply for a national tax number (NTN) and register for income tax 2 days no charge
Agency : Tax facilitation center of the Regional Tax O ce (RTO) of the Federal
Board of Revenue (FBR) in Karachi

To apply, the company must submit a simple one page form called the NTN
Form as well as a proof of registration, the Memorandum and Articles of
Association, bank account number, copies of the national identity cards of its
directors, and an attestation of the registered business address at the
nearest tax facilitation counter of the Regional Tax O ce in Pakistan.
All applications are forwarded to the Central Registration O ce (CRO) in
Islamabad that allocates a uniform NTN number to each company. The
center processes the application and issues the NTN at no charge. The
certi cate is then sent to the registered address of the applicant. The
company can track the application online or through the RTO helpline. If
undelivered, the NTN certi cation can be collected from the speci ed o ce
at the Central Board of Revenue. Recently, the Federal Board of Revenue
launched electronic services enabling online applications for NTN numbers
to be made through its website: www.fbr.gov.pk. Page9
 register for taxes. A copy of the registration certi cate is needed in order to
Doing open a bank2018
Business account.Pakistan

6 Apply for a national tax number (NTN) and register for income tax 2 days no charge
Agency : Tax facilitation center of the Regional Tax O ce (RTO) of the Federal
Board of Revenue (FBR) in Karachi

To apply, the company must submit a simple one page form called the NTN
Form as well as a proof of registration, the Memorandum and Articles of
Association, bank account number, copies of the national identity cards of its
directors, and an attestation of the registered business address at the
nearest tax facilitation counter of the Regional Tax O ce in Pakistan.
All applications are forwarded to the Central Registration O ce (CRO) in
Islamabad that allocates a uniform NTN number to each company. The
center processes the application and issues the NTN at no charge. The
certi cate is then sent to the registered address of the applicant. The
company can track the application online or through the RTO helpline. If
undelivered, the NTN certi cation can be collected from the speci ed o ce
at the Central Board of Revenue. Recently, the Federal Board of Revenue
launched electronic services enabling online applications for NTN numbers
to be made through its website: www.fbr.gov.pk.

7 Apply for a Sales Tax Number (STN) at the tax facilitation center of the 1 day no charge
Regional Tax O ce (RTO) of the Federal Board of Revenue (FBR) in
Karachi
Agency : Tax facilitation center of the Regional Tax O ce (RTO) of the Federal
Board of Revenue (FBR) in Karachi

According to the Sections 14, 15 and 16 of the Sales Tax Act 1990 and Sales
Tax Rules 2006, the company must register for sales tax by submitting the
application Form STR-1 at any tax facilitation counter at the nearest Regional
Tax O ce (RTO). The local RTO forwards all applications to the Central
Registration O ce. After veri cation, the CRO issues a Registration
Certi cate bearing the registration number and mails the same to the
registered company, on a prescribed From STR-5.
The Sales Tax General Order No. 4/2007 introduced electronic ling of the
sales tax returns; and as of July 1st 2008, electronic ling was made
mandatory for all categories of taxpayers.

8 Register for Professional Tax with the Excise & Taxation Department of 7 days no charge
the District (simultaneous with
Agency : Excise & Taxation Department of the District the previous
procedure)
Following the Devolution Plan 2001, professional tax is enforced at the
district level by the Excise and Taxation Department of the relevant
provincial district. The tax is levied upon businesses, professionals, trades,
callings or companies employing such professionals. The responsible district
Excise and Taxation O cer (ET o cer) is empowered to enroll in survey
register every person who carries on any such business or profession and
thereafter, give notice to such enrolled person. In case of a new business,
the company is required to make a request to the ET o cer to get enrolled
by submitting a simple assessment form. The ET o cer issues a registration
number that acts as the reference number for the registered company and
is noted down on every Bank Challan when assessments are paid into the
Bank.

9 Register with the Sindh Employees Social Security Institution (SESSI) 7 days no charge
Agency : Sindh Employees Social Security Institution (SESSI) (simultaneous with
the previous
Registration with the Sindh Employees Social Security Institution is governed
procedure)
at the provincial level by an independent institution called the Sindh ESSI.

Register with Employees Old-Age Bene ts Institution (EOBI) 1 week no charge Page10
 is noted down on every Bank Challan when assessments are paid into the
Doing Bank.
Business 2018 Pakistan

9 Register with the Sindh Employees Social Security Institution (SESSI) 7 days no charge
Agency : Sindh Employees Social Security Institution (SESSI) (simultaneous with
the previous
Registration with the Sindh Employees Social Security Institution is governed
procedure)
at the provincial level by an independent institution called the Sindh ESSI.

Register with Employees Old-Age Bene ts Institution (EOBI) 1 week no charge

10 Agency : Employees Old-Age Bene ts Institution (EOBI) (simultaneous with
the previous
According to the Amendment in EOBI Act 1976 e ective as of July 2008, every
procedure)
industry or a commercial establishment with 5 or more employees must
register with the federal Employees Old Age Bene ts Institution. Under the
Employees Old Age Bene t Scheme, insured persons are entitled to pension
upon retirement, invalidity in the case of a disability, old-age grant in the
case of a retiring elder lacking the minimum threshold for pension, and
survivors pension. A contribution of 5% of minimum wage must be paid by
the employer and 1% of minimum wage must be paid by the employee.

An employer shall before expiration of thirty days from the day on which the
Act becomes applicable to the industry or establishment in respect of which
he/she is the employer, communicate to the Institution the name and
particulars of the industry or establishment in Form PR-01 and of every
insured person employed therein in Form PE-01 and, in the case of Form PE-
01, give the receipt appended to the Form to the insured persons. An
insured person may also communicate his/her name and other particulars
to the Institution in Form PE-02.
Upon receipt of the requisite particulars in Forms PR-01 and PE-01 from an
employer, the Institution shall register the name of the industry or
establishment in respect of which he/she is the employer and of the insured
person and issue to the employer a Certi cate of Registration in Form PI-02
and to each insured person a Registration Card in Form PI-03.
The institution may send the Registration Card in Form PI-03 to the employer
for delivery to the insured person to whom it relates.
The minimum Pension has been increased from PKR 3,600 per month to PKR
5,250 per month.

Register under the West Pakistan Shops and Establishment Ordinance 7 days PKR 1,000
11 1969 with the Labor Department of the District (simultaneous with
Agency : Labour Department of the District the previous
procedure)
Pakistan Shops and Establishment Ordinance 1969 requires every
establishment other than a one man shop to be registered with the Deputy
Chief Inspector of the Labor Department in each district. This is to safeguard
the labor standards of the workers.
To register, the employer must submit the application Form A accompanied
by a bank challan. The application for a new establishment shall be made
within 2 months of setting up the establishment. The registration fees have
been changed to the following pursuant to the Punjab Shops and
Establishments (Amendment) Act 2014 (II of 2014):

Rs. 200 in the case of an establishment employing 1 to 5 workers.

Rs. 300 in the case of an establishment employing 6 to 10 workers.
Rs. 500 in the case of an establishment employing 11 to 20 workers.
Rs. 1000 in the case of an establishment employing more than 20 workers.

Once the payment is settled, the Deputy Chief Inspection lists the
establishment in the Register of Establishments maintained in Form B and
issues a registration certi cate in Form C. The registration certi cate shall be Page11
prominently displayed by the employer at the establishment, and shall be
 The minimum Pension has been increased from PKR 3,600 per month to PKR
Doing 5,250 per month.
Business 2018 Pakistan

Register under the West Pakistan Shops and Establishment Ordinance 7 days PKR 1,000
11 1969 with the Labor Department of the District (simultaneous with
Agency : Labour Department of the District the previous
procedure)
Pakistan Shops and Establishment Ordinance 1969 requires every
establishment other than a one man shop to be registered with the Deputy
Chief Inspector of the Labor Department in each district. This is to safeguard
the labor standards of the workers.
To register, the employer must submit the application Form A accompanied
by a bank challan. The application for a new establishment shall be made
within 2 months of setting up the establishment. The registration fees have
been changed to the following pursuant to the Punjab Shops and
Establishments (Amendment) Act 2014 (II of 2014):

Rs. 200 in the case of an establishment employing 1 to 5 workers.

Rs. 300 in the case of an establishment employing 6 to 10 workers.
Rs. 500 in the case of an establishment employing 11 to 20 workers.
Rs. 1000 in the case of an establishment employing more than 20 workers.

Once the payment is settled, the Deputy Chief Inspection lists the
establishment in the Register of Establishments maintained in Form B and
issues a registration certi cate in Form C. The registration certi cate shall be
prominently displayed by the employer at the establishment, and shall be
renewed after every two years upon payment of fees.

Register the appointed CEO with the SECP Half a day (online PKR 400 for the cost
12 Agency : SECP procedure) of form 29

Pursuant to the Companies Ordinance 1984, articles 198 - 205, a CEO is to be

appointed within 15 days of the company's incorporation. The company
needs to register said CEO within 14 days of the decision.

Applies to women only.

Takes place simultaneously with previous procedure.

Starting a Business - Lahore

Standardized Company

Legal form Private Limited Liability Company

Paid-in minimum capital requirement PKR 0

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedure Men (number) 12 7.9 4.9 1.00 (New Zealand)

Time Men (days) 17.5 15.4 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 7.6 21.4 3.1 0.00 (United Kingdom)

Procedure Women (number) 12 8.1 4.9 1.00 (New Zealand)

Time Women (days) 17.5 15.5 8.5

Page12
0.50 (New Zealand)
 Applies to women only.
Takes place simultaneously with previous procedure.
Doing Business 2018 Pakistan

Starting a Business - Lahore

Standardized Company

Legal form Private Limited Liability Company

Paid-in minimum capital requirement PKR 0

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedure Men (number) 12 7.9 4.9 1.00 (New Zealand)

Time Men (days) 17.5 15.4 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 7.6 21.4 3.1 0.00 (United Kingdom)

Procedure Women (number) 12 8.1 4.9 1.00 (New Zealand)

Time Women (days) 17.5 15.5 8.5 0.50 (New Zealand)

Cost Women (% of income per capita) 7.6 21.4 3.1 0.00 (United Kingdom)

Paid-in min. capital (% of income per capita) 0.0 0.2 8.7 0.00 (113 Economies)

FigureStartingaBusinessinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

85.47: China (Rank: 93)

80.67: Bangladesh (Rank: 131)

78.61: Lahore

75.40: India (Rank: 156)

Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureStartingaBusinessinLahoreProcedure,TimeandCost

Time Cost

16
6
14
ome per capita)

5
12
(days)

10 Page13
4
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

Doing Business 2018 Pakistan

FigureStartingaBusinessinLahoreProcedure,TimeandCost

Time Cost

16
6
14

Cost (% of income per capita)

5
12
Time (days)

10 4

8
3

6
2
4

1
2

0 0
1 2 3 4 5 6 7 *8 *9 * 10 * 11 * 12
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

DetailsStartingaBusinessinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Reserve a company name online via the Securities and Exchange 1 day Free of charge
Commission of Pakistan (SECP) E-services website
Agency : Securities and Exchange Commission of Pakistan (SECP)

The entrepreneur can check the availability of the desired company name via
the website of the Securities and Exchange Commission of Pakistan (SECP).
To reserve a company name, the applicant proposes one or more names in
order of preference, and submits the application form to SECP either online
or in person. The o cial con rmation (or rejection) of the chosen name and
its availability is received by email or via courier upon payment of the name
reservation fee of PKR 200 (online name reservation) or PKR 500 (o ine
name reservation) at the SECP-designated bank. The approved name is
reserved for 90 days, during which the company must be incorporated.

SECP recently introduced the Fast Track Registration Services (FTRS),

processing the company name reservation applications within 4 hours of
submission for an expedited fee of PKR 500 online and PKR 1,000 in person
payable in addition to the normal fees.

2 Pay the name reservation and company incorporation fees at the MCB 1 day included in
Bank procedure 1 (name
Agency : Bank (MCB) reservation fees) and
procedure 3
The company must pay the name reservation and incorporation fees at the
(registration fees)
designated MCB Bank (formerly Muslim Commercial Bank) or at the United
Bank Limited. The form indicating the amount due is obtained from SECP
either online (downloaded) or on-site, or from the bank.
Page14
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

Doing Business 2018 Pakistan

DetailsStartingaBusinessinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Reserve a company name online via the Securities and Exchange 1 day Free of charge
Commission of Pakistan (SECP) E-services website
Agency : Securities and Exchange Commission of Pakistan (SECP)

The entrepreneur can check the availability of the desired company name via
the website of the Securities and Exchange Commission of Pakistan (SECP).
To reserve a company name, the applicant proposes one or more names in
order of preference, and submits the application form to SECP either online
or in person. The o cial con rmation (or rejection) of the chosen name and
its availability is received by email or via courier upon payment of the name
reservation fee of PKR 200 (online name reservation) or PKR 500 (o ine
name reservation) at the SECP-designated bank. The approved name is
reserved for 90 days, during which the company must be incorporated.

SECP recently introduced the Fast Track Registration Services (FTRS),

processing the company name reservation applications within 4 hours of
submission for an expedited fee of PKR 500 online and PKR 1,000 in person
payable in addition to the normal fees.

2 Pay the name reservation and company incorporation fees at the MCB 1 day included in
Bank procedure 1 (name
Agency : Bank (MCB) reservation fees) and
procedure 3
The company must pay the name reservation and incorporation fees at the
(registration fees)
designated MCB Bank (formerly Muslim Commercial Bank) or at the United
Bank Limited. The form indicating the amount due is obtained from SECP
either online (downloaded) or on-site, or from the bank.

The SECP launched online payment facility for its stakeholders in April 2014,
therefore, online ling and payment is now possible for SECPs online lers,
without visiting the Bank or the SECP o ces.

3 Obtain PIN for company incorporation submission Less than one day PKR 100
Agency : SECP (online procedure)

As of April 2017, SEC has allowed for the registration for company
incorporation to be submitted through inputting the PIN number instead of
the digital certi cate. As such, companies now just need to input the
following information into the system his/her 13 digit CNIC Number /NICOP
/POC without dashes. The user will also enter his/her personal details i.e. Full
Name, Fathers/Spouse Name, Gender, Date of Birth, Current Address,
Permanent Address, Mobile Number, Email Address. The user will then enter
his/her proposed password. In next section, the user is required to select
three security Questions and then provide answer to those questions. The
user will then click the Signup button to proceed further. After veri cation,
the system will send security code to User on his/her provided Mobile
Number and also on his/her email address. Upon submission, the system
will send PIN to User on the provided Mobile No. through SMS and also on
the provided Email Address. This system generated PIN will be required for
company incorporation.

4 Complete online registration on the Securities & Exchange Commission 2 days See comments
of Pakistan (SECP) e-portal
Agency : Securities and Exchange Commission of Pakistan (SECP) Page15
 the provided Email Address. This system generated PIN will be required for
Doing company incorporation.
Business 2018 Pakistan

4 Complete online registration on the Securities & Exchange Commission 2 days See comments
of Pakistan (SECP) e-portal
Agency : Securities and Exchange Commission of Pakistan (SECP)

Registration can either be completed online or in person at SECP. The

following documents are required for submission:
a. Form 1: Declaration of compliance
b. Form 21: Identi cation of the location of the o ce
c. Form 29: Particulars of directors, secretary, chief accountant, auditors,
and others
d. One copy of the Memorandum and Articles of Associations with the
signature of each member (in presence of a witness)

The fees for incorporation of a company was updated on May 24, 2016
according to the S.R.O 448. The fees depend on the authorized capital as:

- Online submission: PKR 1,000 for registration of a company whose nominal

share capital does not exceed PKR 100,000 and an additional fee of PKR 500
for every PKR 100,000 of nominal share capital or part thereof, up to PKR
10,000,000. The online ling fee is PKR 400 per document.

A con rmation of the online or physical submission is received instantly, and

the actual certi cate a few days later via email or courier. The entrepreneur
can register with any Company Registration O ce, irrespective of the
jurisdiction. All regional SECP o ces are computerized. In February 2012,
SECP launched the Fast Track Registration Services (FTRS), under which the
incorporation of a company can take place within 4 hours for an expedited
fee of PKR 20,000 for on-site incorporation and PKR 10,000 for online
incorporation payable in addition to the normal fees above. To register a
company online, the entrepreneur must rst obtain a digital signature
through the National Institutional Facilitation Technologies (NIFT) system. If
the application is received with less than four hours remaining in the
working day, the same shall be disposed of in the next working day.

5 Open a bank account for tax registration 1 day No charge

Agency : Bank

A bank account number in the name of the company is needed in order to

register for taxes. A copy of the registration certi cate is needed in order to
open a bank account.

6 Apply for a national tax number (NTN) and register for income tax 2 days no charge
Agency : Tax facilitation center of the Regional Tax O ce (RTO) of the Federal
Board of Revenue (FBR) in Lahore

To apply, the company must submit a simple one page form called the NTN
Form as well as a proof of registration, the Memorandum and Articles of
Association, bank account number, copies of the national identity cards of its
directors, and an attestation of the registered business address at the
nearest tax facilitation counter of the Regional Tax O ce in Pakistan.
All applications are forwarded to the Central Registration O ce (CRO) in
Islamabad that allocates a uniform NTN number to each company. The
center processes the application and issues the NTN at no charge. The
certi cate is then sent to the registered address of the applicant. The
company can track the application online or through the RTO helpline. If
undelivered, the NTN certi cation can be collected from the speci ed o ce
at the Central Board of Revenue. Recently, the Federal Board of Revenue
launched electronic services enabling online applications for NTN numbers
to be made through its website: www.fbr.gov.pk. Page16
 register for taxes. A copy of the registration certi cate is needed in order to
Doing open a bank2018
Business account.Pakistan

6 Apply for a national tax number (NTN) and register for income tax 2 days no charge
Agency : Tax facilitation center of the Regional Tax O ce (RTO) of the Federal
Board of Revenue (FBR) in Lahore

To apply, the company must submit a simple one page form called the NTN
Form as well as a proof of registration, the Memorandum and Articles of
Association, bank account number, copies of the national identity cards of its
directors, and an attestation of the registered business address at the
nearest tax facilitation counter of the Regional Tax O ce in Pakistan.
All applications are forwarded to the Central Registration O ce (CRO) in
Islamabad that allocates a uniform NTN number to each company. The
center processes the application and issues the NTN at no charge. The
certi cate is then sent to the registered address of the applicant. The
company can track the application online or through the RTO helpline. If
undelivered, the NTN certi cation can be collected from the speci ed o ce
at the Central Board of Revenue. Recently, the Federal Board of Revenue
launched electronic services enabling online applications for NTN numbers
to be made through its website: www.fbr.gov.pk.

7 Apply for a Sales Tax Number (STN) at the tax facilitation center of the 1 day no charge
Regional Tax O ce (RTO) of the Federal Board of Revenue (FBR) in
Lahore
Agency : Tax facilitation center of the Regional Tax O ce (RTO) of the Federal
Board of Revenue (FBR) in Lahore

According to the Sections 14, 15 and 16 of the Sales Tax Act 1990 and Sales
Tax Rules 2006, the company must register for sales tax by submitting the
application Form STR-1 at any tax facilitation counter at the nearest Regional
Tax O ce (RTO). The local RTO forwards all applications to the Central
Registration O ce. After veri cation, the CRO issues a Registration
Certi cate bearing the registration number and mails the same to the
registered company, on a prescribed From STR-5.
The Sales Tax General Order No. 4/2007 introduced electronic ling of the
sales tax returns; and as of July 1st 2008, electronic ling was made
mandatory for all categories of taxpayers.

8 Register for Professional Tax with the Excise & Taxation Department of 7 days no charge
the District (simultaneous with
Agency : Excise & Taxation Department of the District the previous
procedure)
Following the Devolution Plan 2001, professional tax is enforced at the
district level by the Excise and Taxation Department of the relevant
provincial district. According to the Punjab Finance Act 1977, the tax is levied
upon businesses, professionals, trades, callings or companies employing
such professionals. The responsible district Excise and Taxation O cer (ET
o cer) is empowered to enroll in survey register every person who carries
on any such business or profession and thereafter, give notice to such
enrolled person. In case of a new business, the company is required to make
a request to the ET o cer to get enrolled by submitting a simple assessment
form. The ET o cer issues a registration number that acts as the reference
number for the registered company and is noted down on every Bank
Challan when assessments are paid into the Bank.

9 Register with the Punjab Employees Social Security Institution (SESSI) 1 week no charge
Agency : Punjab Employees Social Security Institution (PESSI) (simultaneous with
the previous
According to the Punjab Industrial Policy 2003, registration with the Sindh
procedure)
Employees Social Security Institution is governed at the provincial level by an
independent institution called the Punjab ESSI. Employers covered under the
Page17
scheme contribute 6% of the wages to their insured workers. The wage
 number for the registered company and is noted down on every Bank
Doing Challan
Businesswhen assessments
2018 are paid into the Bank.
Pakistan

9 Register with the Punjab Employees Social Security Institution (SESSI) 1 week no charge
Agency : Punjab Employees Social Security Institution (PESSI) (simultaneous with
the previous
According to the Punjab Industrial Policy 2003, registration with the Sindh
procedure)
Employees Social Security Institution is governed at the provincial level by an
independent institution called the Punjab ESSI. Employers covered under the
scheme contribute 6% of the wages to their insured workers. The wage
ceiling should not exceed PKR 15,000 per month or PKR 600 per day 2 as per
Noti cation No: N-L-II (SEESI) 5-12- 91 dated 30 October, 2013. Registration is
compulsory. The company has to complete a simple form to be allotted a
registration number and to later receive an employee card.

Register with Employees Old-Age Bene ts Institution (EOBI) 1 week no charge

10 Agency : Employees Old-Age Bene ts Institution (EOBI) (simultaneous with
the previous
According to the Amendment in EOBI Act 1976 e ective as of July 2008, every
procedure)
industry or a commercial establishment with 5 or more employees must
register with the federal Employees Old Age Bene ts Institution. Under the
Employees Old Age Bene t Scheme, insured persons are entitled to pension
upon retirement, invalidity in the case of a disability, old-age grant in the
case of a retiring elder lacking the minimum threshold for pension, and
survivors pension. A contribution of 5% of minimum wage must be paid by
the employer and 1% of minimum wage must be paid by the employee.

An employer shall before expiration of thirty days from the day on which the
Act becomes applicable to the industry or establishment in respect of which
he/she is the employer, communicate to the Institution the name and
particulars of the industry or establishment in Form PR-01 and of every
insured person employed therein in Form PE-01 and, in the case of Form PE-
01, give the receipt appended to the Form to the insured persons. An
insured person may also communicate his/her name and other particulars
to the Institution in Form PE-02.
Upon receipt of the requisite particulars in Forms PR-01 and PE-01 from an
employer, the Institution shall register the name of the industry or
establishment in respect of which he/she is the employer and of the insured
person and issue to the employer a Certi cate of Registration in Form PI-02
and to each insured person a Registration Card in Form PI-03.
The institution may send the Registration Card in Form PI-03 to the employer
for delivery to the insured person to whom it relates.
The minimum Pension has been increased from PKR 3,600 per month to PKR
5,250 per month.

Register under the West Pakistan Shops and Establishment Ordinance 7 days PKR 1,000
11 1969 with the Labor Department of the District (simultaneous with
Agency : Labour Department of the District the previous
procedure)
Pakistan Shops and Establishment Ordinance 1969 requires every
establishment other than a one man shop to be registered with the Deputy
Chief Inspector of the Labor Department in each district. This is to safeguard
the labor standards of the workers.
To register, the employer must submit the application Form A accompanied
by a bank challan. The application for a new establishment shall be made
within 2 months of setting up the establishment. The registration fees have
been changed to the following pursuant to the Punjab Shops and
Establishments (Amendment) Act 2014 (II of 2014):

Rs. 200 in the case of an establishment employing 1 to 5 workers.

Rs. 300 in the case of an establishment employing 6 to 10 workers.
Rs. 500 in the case of an establishment employing 11 to 20 workers. Page18
Rs. 1000 in the case of an establishment employing more than 20 workers.
 The minimum Pension has been increased from PKR 3,600 per month to PKR
Doing 5,250 per month.
Business 2018 Pakistan

Register under the West Pakistan Shops and Establishment Ordinance 7 days PKR 1,000
11 1969 with the Labor Department of the District (simultaneous with
Agency : Labour Department of the District the previous
procedure)
Pakistan Shops and Establishment Ordinance 1969 requires every
establishment other than a one man shop to be registered with the Deputy
Chief Inspector of the Labor Department in each district. This is to safeguard
the labor standards of the workers.
To register, the employer must submit the application Form A accompanied
by a bank challan. The application for a new establishment shall be made
within 2 months of setting up the establishment. The registration fees have
been changed to the following pursuant to the Punjab Shops and
Establishments (Amendment) Act 2014 (II of 2014):

Rs. 200 in the case of an establishment employing 1 to 5 workers.

Rs. 300 in the case of an establishment employing 6 to 10 workers.
Rs. 500 in the case of an establishment employing 11 to 20 workers.
Rs. 1000 in the case of an establishment employing more than 20 workers.

Once the payment is settled, the Deputy Chief Inspection lists the
establishment in the Register of Establishments maintained in Form B and
issues a registration certi cate in Form C. The registration certi cate shall be
prominently displayed by the employer at the establishment, and shall be
renewed after every two years upon payment of fees.

Register CEO at SECP Less than a day PKR 400 for form 29
12 Agency : SECP (online procedures)

As per companies ordinance 1984, the company is required to a appoint a

CEO within 15 days of commencement of activities. The appointed CEO is
then required by law to be registered at the company's registry. This
registration is a submission of a form online that costs PKR 400.
Con rmed by public sector and private.

Applies to women only.

Takes place simultaneously with previous procedure.

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits,
submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In
addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of
building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more
information

What the indicators measure Case study assumptions

Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions
about the construction company, the warehouse project and the utility
Submitting all relevant documents and obtaining
connections are used.
all necessary clearances, licenses, permits and
certificates The construction company (BuildCo):
Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the
receiving all necessary inspections economys largest business city. For 11 economies the data are also
Page19
collected for the second largest business city.
Obtaining utility connections for water and
 Applies to women only.
Takes place simultaneously with previous procedure.
Doing Business 2018 Pakistan

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits,
submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In
addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of
building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more
information

What the indicators measure Case study assumptions

Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions
about the construction company, the warehouse project and the utility
Submitting all relevant documents and obtaining
connections are used.
all necessary clearances, licenses, permits and
certificates The construction company (BuildCo):
Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the
receiving all necessary inspections economys largest business city. For 11 economies the data are also
collected for the second largest business city.
Obtaining utility connections for water and
- Is 100% domestically and privately owned; has ve owners, none of whom
sewerage
is a legal entity. Has a licensed architect and a licensed engineer, both
Registering and selling the warehouse after its
registered with the local association of architects or engineers. BuildCo is
completion
not assumed to have any other employees who are technical or licensed
Time required to complete each procedure experts, such as geological or topographical experts.
(calendar days) - Owns the land on which the warehouse will be built and will sell the
warehouse upon its completion.
Does not include time spent gathering
information
The warehouse:
Each procedure starts on a separate day - Will be used for general storage activities, such as storage of books or
though procedures that can be fully completed
stationery.
online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of
Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will
document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of
No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned
by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of
- Will have complete architectural and technical plans prepared by a
warehouse value)
licensed architect. If preparation of the plans requires such steps as
Official costs only, no bribes obtaining further documentation or getting prior approvals from external
agencies, these are counted as procedures.
Building quality control index (0-15)
- Will take 30 weeks to construct (excluding all delays due to administrative
Sum of the scores of six component indices: and regulatory requirements).
Quality of building regulations (0-2)
The water and sewerage connections:
Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer
Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole
Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the
smallest size available will be installed or built.
Liability and insurance regimes (0-2)
- Will have an average water use of 662 liters (175 gallons) a day and an
Professional certifications (0-4)
average wastewater ow of 568 liters (150 gallons) a day. Will have a peak
water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of
1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater ow
throughout the year; will be 1 inch in diameter for the water connection
and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits - Karachi Page20

 and 4 inches in diameter for the sewerage connection.

Doing Business 2018 Pakistan

Dealing with Construction Permits - Karachi

Standardized Warehouse

Estimated value of warehouse PKR 8,140,382.70

City Covered Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Procedures (number) 15 16.0 12.5 7.00 (Denmark)

Time (days) 260 193.9 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 8.5 17.6 1.6 0.10 (5 Economies)

Building quality control index (0-15) 12.5 8.7 11.4 15.00 (3 Economies)

FigureDealingwithConstructionPermitsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

61.97: Bangladesh (Rank: 130)

58.30: Karachi

47.28: China (Rank: 172)

38.80: India (Rank: 181)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier
scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the
component indicators.

FigureDealingwithConstructionPermitsinKarachiProcedure,TimeandCost

Time Cost

3
250

2.5
Cost (% of warehouse value)

200

2
Time (days)

150
1.5

100
1

50
0.5

0 0
1 2 *3 4 5 6 7 8 9 10 11 12 13 14 15
Page21
component indicators.

Doing Business 2018 Pakistan

FigureDealingwithConstructionPermitsinKarachiProcedure,TimeandCost

Time Cost

3
250

2.5

Cost (% of warehouse value)

200

2
Time (days)

150
1.5

100
1

50
0.5

0 0
1 2 *3 4 5 6 7 8 9 10 11 12 13 14 15
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

FigureDealingwithConstructionPermitsinKarachiandcomparatoreconomiesMeasureofQuality

14
12.5
12 11.5
10.0 9.6
10 8.7
Index score

Karachi Bangladesh China India South Asia

DetailsDealingwithConstructionPermitsinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtain letter from the relevant land owning authority con rming the 14 days no charge
land title
Agency : Relevant Land Owning Authority

BuildCo must obtain a letter from the relevant authority con rming the title
or land use, the dimensions of the plot, and the possible existence of any
road widening, cut line, or reservation.

2 Obtain building permit 60 days PKR 224,000

Agency : Sindh Building Control Authority

An application form is to be submitted to the Sindh Building Control

Authority (SBCA) along with the following documents: Page22
 Karachi Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsDealingwithConstructionPermitsinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtain letter from the relevant land owning authority con rming the 14 days no charge
land title
Agency : Relevant Land Owning Authority

BuildCo must obtain a letter from the relevant authority con rming the title
or land use, the dimensions of the plot, and the possible existence of any
road widening, cut line, or reservation.

2 Obtain building permit 60 days PKR 224,000

Agency : Sindh Building Control Authority

An application form is to be submitted to the Sindh Building Control

Authority (SBCA) along with the following documents:

A building plan (initially three copies and then six copies) together with:
1. Full particulars of the land plot with a speci cation of its intended use
(such as residential, commercial, etc.)
2. Two sets of all documents relating to the plot and a letter from the
concerned authority con rming the title or land use, the plot dimensions,
and the possible existence of any road widening, cut line, or reservation

A plan description:
1. Any proposed and/or revised addition and/or alteration
2. Any previous approval, if applicable
3. Details of any litigation relating to the plot

The drawings should show plans, sections, and elevations, together with
other necessary details pertaining to RCC elements, joinery work, and
covered areas of every oor, including the basement (if applicable). In
addition, a block plan of the site, drawn to a scale of not less than 1:500 (1:8)
should be included. Such a plan and sections should show the buildings
intended use; the access to and from the various parts of the building; the
position dimensions; the means of ventilation; the proposed plinth height;
the superstructure at each oor level; and the dimensions and descriptions
of all the walls, oors, roofs, staircases, elevators, and the like.

A description of the proposed construction:

1. Type of building
2. Total oor area
3. Number of oors
4. Number of units (for public sale projects only)
5. Car parking space
6. Area of amenity space

Particulars of the licensed professionals employed to prepare the plan and

supervise work:
1. Name
2. License number/professional registration number from the Public
Electricity Corporation (PEC)
3. National identity card number
4. Mailing and permanent address/ telephone number
5. O ce address and telephone number

A speci cation of the buildings intended use (i.e., is it being built for public Page23
 3. National identity card number
4. Mailing and permanent address/ telephone number
Doing 5.Business 2018andPakistan
O ce address telephone number

A speci cation of the buildings intended use (i.e., is it being built for public
sale)

A list of other documents to be attached to the application (photocopies

should be duly attested by the professional):
1. Lease/sale deed, allotment order, mutation (or transfer) order (or extract)
2. Possession order
3. Acknowledgement of possession
4. Site plan
5. No-objection certi cate (NOC), if applicable
6. National identity card
7. Letter from the owner, or attorney of the owner, authorizing a named
professional whose license or registration number should also be provided,
to complete and comply with the requirements of the Sindh Building Control
Ordinance of 1979, as amended, and with the requirements of the
regulations framed under the ordinance for and on behalf of the owner. The
letter should also indicate that a plinth certi cate notice would be provided
at the completion of the plinth as required under section 3-2.10 of the
Karachi Building and Town Planning Regulations of 2002. The letter should
also specify that the owner would abide by all the aforementioned rules and
regulations, and it must be signed by the owner or the owners attorney,
contain their national identity card number, email address, mailing and
permanent address, telephone number, and the signature and particulars of
the architect and structural engineer.

A form specifying the architects and structural engineers undertaking:

1. The SBCA operates under the Sindh Local Government Ordinance of 2002,
and falls under the control of the Karachi City District Government of which
the Nazim (elected head of Karachi city local council) is the chief executive.

If the property is in a military cantonment jurisdiction, BuildCo must send

the documents to the Cantonment Board, which takes about 30 days. The
Doing Business case study considered here assumes that the property is not
located in this type of jurisdiction.

3 File an environmental checklist with the Environmental Protection 30 days PKR 30,000
Agency
Agency : Environmental Protection Agency

According to the Sindh Environmental Protection Agency Regulations 2014,

warehouses shall le environmental checklist with the Agency and the
provisions of section 17 shall apply to such projects.

4 Notify the Sindh Building Control Authority (SBCA) in writing of the 1 day no charge
completion of foundations
Agency : Sindh Building Control Authority

Upon completion of the plinth level, BuildCo is required to notify the SBCA so
that they can verify the building lines.

5 Receive foundations work inspection from the Sindh Building Control 15 days no charge
Authority (SBCA) and await approval
Agency : Sindh Building Control Authority

Except for Category 1 building works, Regulation No. 3-2.10 of the 2002
Regulations requires BuildCo to notify the SBCA upon completion of plinth
level and, in the case of a basement, upon the completion of foundations, so
that SBCA can verify the building lines. Regulation No. 3-2.10 also indicates
that no further work can be carried out for a 15-day period following the Page24
 Upon completion of the plinth level, BuildCo is required to notify the SBCA so
Doing that they can2018
Business verify the building lines.
Pakistan

5 Receive foundations work inspection from the Sindh Building Control 15 days no charge
Authority (SBCA) and await approval
Agency : Sindh Building Control Authority

Except for Category 1 building works, Regulation No. 3-2.10 of the 2002
Regulations requires BuildCo to notify the SBCA upon completion of plinth
level and, in the case of a basement, upon the completion of foundations, so
that SBCA can verify the building lines. Regulation No. 3-2.10 also indicates
that no further work can be carried out for a 15-day period following the
noti cation date.

During this period, the SBCA either approves the building lines or informs
the owner or owners representative of any possible errors found. If no
response is received from the SBCA within the 15-day period, the owner can
proceed with the building works after notifying the SBCA, provided that the
construction is consistent with the approved building plan.

6 Submit the rst oor Certi cate Form to the Sindh Building Control 1 day no charge
Authority (SBCA)
Agency : Sindh Building Control Authority (SBCA)

For Category III and Category IV buildings, the owner and Professionals
shall submit to the Authority oor certi cate (Form ZP-5) casting of slab of
each oor, certifying that all the building line and structural members on the
said oor are in conformity with the design as approved by the Authority
subject to clause 3-2.4 and 3-2.5. If the owner/professional fails to submit the
oor certi cate the authority shall stop further construction work.

7 Receive rst oor slab casting inspection from the Sindh Building 15 days no charge
Control Authority (SBCA) and await approval
Agency : Sindh Building Control Authority (SBCA)

8 Submit the second oor Certi cate Form to the Sindh Building Control 1 day no charge
Authority (SBCA)
Agency : Sindh Building Control Authority (SBCA)

9 Receive second oor slab casting inspection from the Sindh Building 15 days no charge
Control Authority (SBCA) and await approval
Agency : Sindh Building Control Authority (SBCA)

10 Request a copy of property tax valuation and copy of the certi cate from 30 days no charge
the Excise and Taxation Department
Agency : Excise and Taxation Department

BuildCo must obtain a copy of the property tax valuation and a copy of the
certi cate from the tax authorities con rming that it does not owe them any
money. These documents are submitted along with the water connection
application.

The Excise and Taxation Department of the Government of Sindh provides

the property tax valuation after the building is completed. The department
inspects the building and issues a certi cate to the owner of the building.
The certi cate provides an assessment of the value of the building. If BuildCo
has any objections to this assessment, it is required to make them known
within 14 days. Otherwise, the department issues a PT-1 Form, a certi cate
that provides the assessed value of the property and the resultant property
tax to be charged.
Page25
 Control Authority (SBCA) and await approval
Agency : Sindh Building Control Authority (SBCA)
Doing Business 2018 Pakistan

10 Request a copy of property tax valuation and copy of the certi cate from 30 days no charge
the Excise and Taxation Department
Agency : Excise and Taxation Department

BuildCo must obtain a copy of the property tax valuation and a copy of the
certi cate from the tax authorities con rming that it does not owe them any
money. These documents are submitted along with the water connection
application.

The Excise and Taxation Department of the Government of Sindh provides

the property tax valuation after the building is completed. The department
inspects the building and issues a certi cate to the owner of the building.
The certi cate provides an assessment of the value of the building. If BuildCo
has any objections to this assessment, it is required to make them known
within 14 days. Otherwise, the department issues a PT-1 Form, a certi cate
that provides the assessed value of the property and the resultant property
tax to be charged.

The documents needed are the following:

An application providing information relating to the building
Title documents/ documents evidencing title of the property
Approved building plan
National identity card of the applicant

11 Receive inspection from the Excise and Taxation Department and obtain 1 day no charge
a copy of property tax valuation and copy of the certi cate from the tax
authorities
Agency : Excise and Taxation Department

12 Request water and sewerage connection 60 days PKR 217,175

Agency : Karachi Water and Sewerage Board

An application form must be submitted to the Karachi Water and Sewerage

Board along with the following documents to apply for water and sewerage
connection:
A copy of the approved building plan along with a copy of the letter under
the cover of which the approved building plan was issued by the SBCA
Proof of ownership of the plot, or for a tenancy, a copy of the lease
agreement
A copy of the property tax valuation
A copy of the certi cate from the tax authorities con rming that the
company does not owe them any money
A copy of the applicants national identity card

13 Apply for occupancy permit and request nal inspection 1 day no charge
Agency : Sindh Building Control Authority

After the building is completed, a notice of completion and permission for

occupation form must be submitted along with the architects certi cate.
After receipt of this notice, the SBCA inspects the building to verify that it has
been built according to the approved plans.

14 Receive nal inspection 1 day no charge

Agency : Sindh Building Control Authority

15 Receive completion certi cate from the Sindh Building Control Authority 45 days PKR 224,000
(SBCA)
Agency : Sindh Building Control Authority Page26
 14 Receive nal inspection 1 day no charge
Agency : Sindh Building Control Authority
Doing Business 2018 Pakistan

15 Receive completion certi cate from the Sindh Building Control Authority 45 days PKR 224,000
(SBCA)
Agency : Sindh Building Control Authority

Takes place simultaneously with previous procedure.

DetailsDealingwithConstructionPermitsinKarachiMeasureofQuality

Answer Score

Building quality control index (0-15) 12.5

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.

Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.

Quality control during construction index (0-3) 1.0

What types of inspections (if any) are required by law to be carried out during Inspections by 1.0
construction? (0-2) in-house
engineer;
Inspections at
various phases.

Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice
during
construction;
Mandatory
inspections are
done most of the
time during
construction.

Quality control after construction index (0-3) 3.0

Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0
accordance with the approved plans and regulations? (0-2) inspection is
done by
government
agency. Page27
 Takes place simultaneously with previous procedure.

Doing Business 2018 Pakistan

DetailsDealingwithConstructionPermitsinKarachiMeasureofQuality

Answer Score

Building quality control index (0-15) 12.5

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.

Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.

Quality control during construction index (0-3) 1.0

What types of inspections (if any) are required by law to be carried out during Inspections by 1.0
construction? (0-2) in-house
engineer;
Inspections at
various phases.

Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice
during
construction;
Mandatory
inspections are
done most of the
time during
construction.

Quality control after construction index (0-3) 3.0

Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0
accordance with the approved plans and regulations? (0-2) inspection is
done by
government
agency.

Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.

Liability and insurance regimes index (0-2) 1.5

Which parties (if any) are held liable by law for structural aws or problems in the Construction 0.5 Page28
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) company.
Liability
Doing and insurance
Business 2018 regimes index (0-2)
Pakistan 1.5

Which parties (if any) are held liable by law for structural aws or problems in the Construction 0.5
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) company.

Which parties (if any) are required by law to obtain an insurance policy to cover Construction 1.0
possible structural aws or problems in the building once it is in use (Latent Defect company;
Liability Insurance or Decennial Insurance)? (0-1) Insurance is
commonly taken
in practice.

Professional certi cations index (0-4) 4.0

What are the quali cation requirements for the professional responsible for verifying Minimum 2.0
that the architectural plans or drawings are in compliance with existing building number of years
regulations? (0-2) of experience;
University
degree in
architecture or
engineering;
Being a
registered
architect or
engineer.

What are the quali cation requirements for the professional who supervises the Minimum 2.0
construction on the ground? (0-2) number of years
of experience;
University
degree in
engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.

Dealing with Construction Permits - Lahore

Standardized Warehouse

Estimated value of warehouse PKR 8,140,382.70

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedures (number) 15 16.0 12.5 7.00 (Denmark)

Time (days) 266 193.9 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 3.0 17.6 1.6 0.10 (5 Economies)

Building quality control index (0-15) 11.0 8.7 11.4 15.00 (3 Economies)

Page29
 architect or
engineer.
Doing Business 2018 Pakistan

Dealing with Construction Permits - Lahore

Standardized Warehouse

Estimated value of warehouse PKR 8,140,382.70

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedures (number) 15 16.0 12.5 7.00 (Denmark)

Time (days) 266 193.9 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 3.0 17.6 1.6 0.10 (5 Economies)

Building quality control index (0-15) 11.0 8.7 11.4 15.00 (3 Economies)

FigureDealingwithConstructionPermitsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

62.35: Lahore

61.97: Bangladesh (Rank: 130)

47.28: China (Rank: 172)

38.80: India (Rank: 181)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier
scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the
component indicators.

FigureDealingwithConstructionPermitsinLahoreProcedure,TimeandCost

Time Cost

1.2
250

1
Cost (% of warehouse value)

200

0.8
Time (days)

150
0.6

100
0.4

50 0.2

Page30
0 0
component indicators.

Doing Business 2018 Pakistan

FigureDealingwithConstructionPermitsinLahoreProcedure,TimeandCost

Time Cost

1.2
250

Cost (% of warehouse value)

200

0.8
Time (days)

150
0.6

100
0.4

50 0.2

0 0
1 2 *3 4 5 6 7 8 9 10 11 12 13 14 15
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

FigureDealingwithConstructionPermitsinLahoreandcomparatoreconomiesMeasureofQuality

14

12 11.0 11.5
10.0 9.6
10 8.7
Index score

Lahore Bangladesh China India South Asia

DetailsDealingwithConstructionPermitsinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtain Fard (letter from concerned authority con rming the land title) 2 days PKR 150
from the Land Revenue Management Information System
Agency : Land Revenue Management Information system (LRMIS)

BuildCo must obtain a letter from the concerned authority con rming the
title or land use, the dimensions of the plot, and the possible existence of
any road widening, cut line, or reservation.

2 Obtain a No Objection Certi cate on the Environmental Impact 105 days PKR 10,000
Assessment from the Environmental Protection Agency
Agency : Environmental Protection Agency

Per the Punjab Environmental Protection Act, 1997 (Amended in 2012) and Page31
 Lahore Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsDealingwithConstructionPermitsinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtain Fard (letter from concerned authority con rming the land title) 2 days PKR 150
from the Land Revenue Management Information System
Agency : Land Revenue Management Information system (LRMIS)

BuildCo must obtain a letter from the concerned authority con rming the
title or land use, the dimensions of the plot, and the possible existence of
any road widening, cut line, or reservation.

2 Obtain a No Objection Certi cate on the Environmental Impact 105 days PKR 10,000
Assessment from the Environmental Protection Agency
Agency : Environmental Protection Agency

Per the Punjab Environmental Protection Act, 1997 (Amended in 2012) and
the Environmental Impact Assessment Regulations of 2000, the building
authority in Lahore requires a No Objection Certi cate from the
Environmental Protection Agency to issue the building permit. BuildCo must
then prepare and submit an Initial Environmental Examination (IEE) to the
Environmental Protection Agency in order to obtain this certi cate which
costs PKR 10,000 per schedule II of the regulation.

3 Obtain a building permit 60 days PKR 70,000

Agency : Lahore Development Authority (LDA)

According to the Building and Zoning By Laws of 2007, in order to obtain

approval to execute the works, the building company must apply in writing
to the LDA and submit the following documents:

a. Application form signed by the registered architect, the attorney-in-

practice, and a registered structural engineer;
b. Five sets of building plans (site plan, architectural drawings with elevations
and sections, structural drawings, and stability certi cate), each signed by
the relevant professional (either the architect or the structural engineer);
c. Proof of ownership (copy of the sale deed, copy of the allotment letter, or
fard);
d. Copy of the companys memorandum of incorporation;
e. Power of attorney to act on behalf of the company and a copy of the
national identi cation card of the attorney-in-practice.

If the building company does not receive a response to its application within
45 days of submission, it can send a written communication by registered
post to the relevant authority. If such communication is not answered within
15 days, the building company can assume that the building plan approval
has been granted and can start construction (as per Art. 27.6, Section 192,
Fourth Schedule, Chapter 14 of the Punjab Local Government Ordinance,
2001).

4 Notify the local city government (LDA) in writing of the completion of 1 day no charge
foundations
Agency : Lahore Development Authority (LDA)

Upon completion of the foundation level, BuildCo is required to notify the

LDA so that they can conduct an inspection.

5 Receive foundations work inspection from the Lahore Development 1 day no charge
Authority (LDA) Page32
 Upon completion of the foundation level, BuildCo is required to notify the
Doing LDA so that they
Business 2018can Pakistan
conduct an inspection.

5 Receive foundations work inspection from the Lahore Development 1 day no charge
Authority (LDA)
Agency : Lahore Development Authority (LDA)

Inspectors from LDA must inspect the building site when the foundations
have been laid. Inspections are free of charge.

6 Submit the rst oor Certi cate Form to the Lahore Development 1 day no charge
Authority (LDA)
Agency : Lahore Development Authority (LDA)

Per Art. 8(ii) of the 2001 Law, a certi cate of durability in accordance with
building plan must be obtained from architect and engineers concerned
after the completion of each oor.

7 Receive rst oor slab casting inspection from the Lahore Development 1 day no charge
Authority (LDA)
Agency : Lahore Development Authority (LDA)

8 Submit the second oor Certi cate Form to the Lahore Development 1 day no charge
Authority (LDA)
Agency : Lahore Development Authority (LDA)

9 Receive second oor slab casting inspection from the Lahore 1 day no charge
Development Authority (LDA)
Agency : Lahore Development Authority (LDA)

10 Request assessment copy of property unit from the Excise and Taxation 30 days no charge
Department
Agency : Excise & Taxation Department, Government of The Punjab

BuildCo must obtain a copy of the property tax valuation and a copy of the
certi cate from the tax authorities con rming that the company does not
owe them any money. These documents are submitted along with the water
connection application.

The Excise and Taxation Department of the Government of the Punjab

provides the property tax valuation after the building is completed. The
department inspects the building and issues a certi cate to the owner of the
building. The certi cate provides an assessment of the value of the building.
If BuildCo has any objections to this assessment, it is required to make them
known within 14 days. Otherwise, the department issues a PT-1 Form, a
certi cate that provides the assessed value of the property and the resultant
property tax to be charged. The following documents are needed:
An application providing information relating to the building
Title documents/ documents evidencing title of the property
Approved building plan
National identity card of the applicant

11 Receive inspection from the Excise and Taxation Department and obtain 1 day no charge
the assessment copy of property unit
Agency : Excise & Taxation Department, Government of The Punjab

The department inspects the building and issues a certi cate to the owner of
the building. The certi cate provides an assessment of the value of the
building.

12 Request water and sewerage connection 60 days PKR 90,000 Page33

 the building. The certi cate provides an assessment of the value of the
Doing building.
Business 2018 Pakistan

12 Request water and sewerage connection 60 days PKR 90,000

Agency : Water and Sewerage Authority (WASA)

The following documents should be provided with the new connection form:
- Attested photocopy of CNIC
- Attested photocopy of sale deed/proof of ownership
- Copy of the assessment of property unit
- Site plan to indicate location of property

13 Apply for completion certi cate and request nal inspection 1 day PKR 70,000
Agency : Lahore Development Authority (LDA)

After the building is completed, a notice of completion and permission for

occupation form is to be submitted along with the architects certi cate.
After receipt of this notice, the Lahore Development Authority (LDA) inspects
the building to verify that it has been built according to the approved plans.

14 Receive nal inspection 1 day no charge

Agency : Lahore Development Authority (LDA)

15 Receive completion certi cate from the Lahore Development Authority 60 days no charge
(LDA)
Agency : Lahore Development Authority (LDA)

After the nal inspection has taken place, and provided that the works have
been carried out according to the approved building plan, the Lahore
Development Authority (LDA) issues a certi cate of completion.

Takes place simultaneously with previous procedure.

DetailsDealingwithConstructionPermitsinLahoreMeasureofQuality

Answer Score

Building quality control index (0-15) 11.0

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.

Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.

Quality control during construction index (0-3) 2.0

What types of inspections (if any) are required by law to be carried out during Inspections by 1.0
construction? (0-2) in-house
Page34
engineer;
 Takes place simultaneously with previous procedure.

Doing Business 2018 Pakistan

DetailsDealingwithConstructionPermitsinLahoreMeasureofQuality

Answer Score

Building quality control index (0-15) 11.0

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.

Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.

Quality control during construction index (0-3) 2.0

What types of inspections (if any) are required by law to be carried out during Inspections by 1.0
construction? (0-2) in-house
engineer;
Inspections at
various phases.

Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.

Quality control after construction index (0-3) 2.0

Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0
accordance with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Final
inspection is not
required by law.

Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.

Liability and insurance regimes index (0-2) 0.0

Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law. Page35
Liability
Doing and insurance
Business 2018 regimes index (0-2)
Pakistan 0.0

Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.

Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0
possible structural aws or problems in the building once it is in use (Latent Defect required by law
Liability Insurance or Decennial Insurance)? (0-1) to obtain
insurance .

Professional certi cations index (0-4) 4.0

What are the quali cation requirements for the professional responsible for verifying Minimum 2.0
that the architectural plans or drawings are in compliance with existing building number of years
regulations? (0-2) of experience;
University
degree in
architecture or
engineering;
Being a
registered
architect or
engineer.

What are the quali cation requirements for the professional who supervises the Minimum 2.0
construction on the ground? (0-2) number of years
of experience;
University
degree in
engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.

Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,
transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June
2017. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are
(number) used.

Submitting all relevant documents and obtaining

The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
Completing all required notifications and
- Is located in the economys largest business city. For 11 economies the
receiving all necessary inspections
data are also collected for the second largest business city.
Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is
purchasing material for these works in an area with no physical constraints. For example, the property is not
Concluding any necessary supply contract and near a railway. Page36
obtaining final supply - Is a new construction and is being connected to electricity for the rst
 architect or
engineer.
Doing Business 2018 Pakistan

Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,
transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June
2017. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are
(number) used.

Submitting all relevant documents and obtaining

The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
Completing all required notifications and
- Is located in the economys largest business city. For 11 economies the
receiving all necessary inspections
data are also collected for the second largest business city.
Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is
purchasing material for these works in an area with no physical constraints. For example, the property is not
Concluding any necessary supply contract and near a railway.
obtaining final supply - Is a new construction and is being connected to electricity for the rst
time.
Time required to complete each procedure
- Has two stories with a total surface area of approximately 1,300.6 square
(calendar days)
meters (14,000 square feet). The plot of land on which it is built is 929
Is at least 1 calendar day square meters (10,000 square feet).
Each procedure starts on a separate day
Does not include time spent gathering The electricity connection:
information - Is a permanent one with a three-phase, four-wire Y connection with a
subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1,
Reflects the time spent in practice, with little
when 1 kVA = 1 kilowatt (kW).
follow-up and no prior contact with officials
- Has a length of 150 meters. The connection is to either the low- or
Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or
income per capita) underground, whichever is more common in the area where the
Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10-
meter road (such as by excavation or overhead lines) but are all carried out
Value added tax excluded
on public land. There is no crossing of other owners private property
The reliability of supply and transparency of because the warehouse has access to a road.
tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This
has already been completed up to and including the customers service
Duration and frequency of power outages (03)
panel or switchboard and the meter base.
Tools to monitor power outages (01)
Tools to restore power supply (01) The monthly consumption:
Regulatory monitoring of utilities performance - It is assumed that the warehouse operates 30 days a month from 9:00
(01) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity
Financial deterrents limiting outages (01) on average and that there are no electricity cuts (assumed for simplicity
reasons) and the monthly energy consumption is 26,880 kilowatt-hours
Transparency and accessibility of tariffs (01)
(kWh); hourly consumption is 112 kWh.
Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the
Price based on monthly bill for commercial cheapest supplier.
warehouse in case study - Tari s e ective in March of the current year are used for calculation of
the price of electricity for the warehouse. Although March has 31 days, for
* N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used.
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.

Page37
Getting Electricity - Karachi
frontier score nor the ranking on the ease of getting
electricity.
Doing Business 2018 Pakistan

Getting Electricity - Karachi

Standardized Connection

Price of electricity (US cents per kWh) 18.8

Name of utility K-Electric Ltd.

City Covered Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Procedures (number) 5 5.7 4.7 2 (United Arab

Emirates)

Time (days) 215 136.4 79.1 10 (United Arab

Emirates)

Cost (% of income per capita) 1665.5 1163.2 63.0 0.00 (Japan)

Reliability of supply and transparency of tariff 0 2.1 7.4 8.00 (28 Economies)
index (0-8)

FigureGettingElectricityinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

85.21: India (Rank: 29)

68.83: China (Rank: 98)

40.11: Karachi

16.97: Bangladesh (Rank: 185)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureGettingElectricityinKarachiProcedure,TimeandCost

Time Cost

1800
200
1600
(% of income per capita)

1400
150
1200
Time (days)

1000

100
800
Page38
600
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.

Doing Business 2018 Pakistan

FigureGettingElectricityinKarachiProcedure,TimeandCost

Time Cost

1800
200
1600

Cost (% of income per capita)

1400
150
1200
Time (days)

1000

100
800

600

50 400

200

0 0
1 2 3 4 5
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

FigureGettingElectricityinKarachiandcomparatoreconomiesMeasureofQuality

8
7
7
6
6
Index score

5
4
3
2.1
2
1
0 0
0

Karachi Bangladesh China India South Asia

DetailsGettingElectricityinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Submit application to K-Electric Ltd. and await site inspection 30 calendar days PKR 200
Agency : K-Electric Ltd.

Application form should be veri ed by the Licensed Electrical Contractor. The

application should be accompanied with a copy of the computerized national
identity card (CNIC) of the owner, a copy of the approved building plan, a
copy of the approved layout plan, a copy of the trade license, the list of
machinery & equipment (needs to be notarized), details of the chiller units
(in case of centrally air conditioned units), a passport size photo of the
applicant, a company letter head mentioning the name of the authorizing
person (needs to be notarized), the CNIC number, and the NTN certi cate
from the federal board of revenue.
Page39
 Karachi Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsGettingElectricityinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Submit application to K-Electric Ltd. and await site inspection 30 calendar days PKR 200
Agency : K-Electric Ltd.

Application form should be veri ed by the Licensed Electrical Contractor. The

application should be accompanied with a copy of the computerized national
identity card (CNIC) of the owner, a copy of the approved building plan, a
copy of the approved layout plan, a copy of the trade license, the list of
machinery & equipment (needs to be notarized), details of the chiller units
(in case of centrally air conditioned units), a passport size photo of the
applicant, a company letter head mentioning the name of the authorizing
person (needs to be notarized), the CNIC number, and the NTN certi cate
from the federal board of revenue.

2 Obtain site inspection by K-Electric Ltd. and await estimate 21 calendar days PKR 0
Agency : K-Electric Ltd.

After site inspection/survey, connection point is assessed, load ow study is

done and schematic diagram is prepared after which veri cation from
network department is carried out and load approval process is done. After
load approval, cost estimation is prepared and delivered to applicant within
3 days.

3 Obtain wiring inspection 14 calendar days PKR 10,000

Agency : Electric Inspectorate Karachi

To obtain the wiring test form from the Electric Inspectorate Karachi (EIK) -
and once the internal works are completed - the contractor needs to give the
address of the property so that EIK can proceed to test the internal wiring
on-site. An inspector from EIK will then carry-out the inspection and issue
the tness certi cate. It takes two calendar weeks on average from the time
of the request to the time the tness certi cate is issued.

4 Pay estimate to K-Electric Ltd., and submit the internal wiring test 30 calendar days PKR 2,701,421.9
report as well as the delivery orders of the material
Agency : K-Electric Ltd.

The customer submits the wiring test and makes the payment of the
connection estimate. The payment has to be made by cheque at the bank
counter of the utility. The customer then nominates one of the pre-quali ed
contractors (if it hasnt already) who purchases the material, after which he
submits the delivery and order con rmations.

K-electric will issue the following documents:

Bill of materials
Approved drawings
List of approved manufacturers / suppliers for supply of materials
List of contact details of manufacturers / suppliers
List of approved pre-quali ed contractors for scheme execution
Letter of agreement for conformance to current KE speci cations
Letter of conformance to current KE speci cations (for transformers)
Letter of conformance to current KE speci cations (for other materials)

5 Await external works, meter installation and electricity ow from K- 120 calendar days PKR 0
Electric Ltd.
Page40
Agency : K-Electric Ltd.
 Letter of conformance to current KE speci cations (for transformers)
Doing Business
Letter of conformance to current KE speci cations (for other materials)
2018 Pakistan

5 Await external works, meter installation and electricity ow from K- 120 calendar days PKR 0
Electric Ltd.
Agency : K-Electric Ltd.

The pre-approved contractor conducts the works under the direct

supervision of K-Electric technicians. The external connection works includes
the erection of poles, the laying of HT/LT cables, the completion of PMT / Sub
Station works, and the meter installation works. Once the works are
completed, K-electric carries out the installation of the meter and then the
electricity turn-on.

Takes place simultaneously with previous procedure.

DetailsGettingElectricityinKarachiMeasureofQuality

Answer

Reliability of supply and transparency of tari index (0-8) 0

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) 505.6

System average interruption frequency index (SAIFI) 385.5

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 1

Does the distribution utility use automated tools to restore service? Yes

Regulatory monitoring (0-1) 1

Does a regulatorthat is, an entity separate from the utilitymonitor the utilitys performance on Yes
reliability of supply?

Financial deterrents aimed at limiting outages (0-1) 1

Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes
exceed a certain cap?

Communication of tari s and tari changes (0-1) 0

Are e ective tari s available online? Yes

Link to the website, if available online https://www.ke.com.

pk/assets/uploads/2
016/08/SRO-571-
updated.pdf

Are customers noti ed of a change in tari ahead of the billing cycle? No

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency
of tari index. Page41
 Takes place simultaneously with previous procedure.

Doing Business 2018 Pakistan

DetailsGettingElectricityinKarachiMeasureofQuality

Answer

Reliability of supply and transparency of tari index (0-8) 0

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) 505.6

System average interruption frequency index (SAIFI) 385.5

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 1

Does the distribution utility use automated tools to restore service? Yes

Regulatory monitoring (0-1) 1

Does a regulatorthat is, an entity separate from the utilitymonitor the utilitys performance on Yes
reliability of supply?

Financial deterrents aimed at limiting outages (0-1) 1

Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes
exceed a certain cap?

Communication of tari s and tari changes (0-1) 0

Are e ective tari s available online? Yes

Link to the website, if available online https://www.ke.com.

pk/assets/uploads/2
016/08/SRO-571-
updated.pdf

Are customers noti ed of a change in tari ahead of the billing cycle? No

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency
of tari index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Getting Electricity - Lahore

Standardized Connection

Price of electricity (US cents per kWh) 18.8

Name of utility Lahore Electricity Supply Company Ltd (LESCO)

Page42
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Doing Business 2018 Pakistan

Getting Electricity - Lahore

Standardized Connection

Price of electricity (US cents per kWh) 18.8

Name of utility Lahore Electricity Supply Company Ltd (LESCO)

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedures (number) 6 5.7 4.7 2 (United Arab

Emirates)

Time (days) 117 136.4 79.1 10 (United Arab

Emirates)

Cost (% of income per capita) 1660.2 1163.2 63.0 0.00 (Japan)

Reliability of supply and transparency of tariff 0 2.1 7.4 8.00 (28 Economies)
index (0-8)

FigureGettingElectricityinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

85.21: India (Rank: 29)

68.83: China (Rank: 98)

46.62: Lahore

16.97: Bangladesh (Rank: 185)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureGettingElectricityinLahoreProcedure,TimeandCost

Time Cost

1800

1600
100
(% of income per capita)

1400

80 1200
Time (days)

1000
60
800
Page43
40 600
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.

Doing Business 2018 Pakistan

FigureGettingElectricityinLahoreProcedure,TimeandCost

Time Cost

1800

1600
100

Cost (% of income per capita)

1400

80 1200
Time (days)

1000
60
800

40 600

400
20
200

0 0
1 2 3 4 5 6
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

FigureGettingElectricityinLahoreandcomparatoreconomiesMeasureofQuality

8
7
7
6
6
Index score

5
4
3
2.1
2
1
0 0
0

Lahore Bangladesh China India South Asia

DetailsGettingElectricityinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Submit application to LESCO and await site inspection 30 calendar days PKR 0
Agency : LESCO

The application form should be veri ed by a Licensed Electrical Contractor. It

should be accompanied with a copy of the computerized national identity
card (CNIC) of the owner, a copy of the approved building plan, a copy of the
approved layout plan, a copy of the trade license, the list of machinery, the
equipment, details of chiller units (in case of centrally air conditioned units),
a passport size photo of applicants, and a company letter head mentioning
name of authorizing person and his CNIC number.

The client submits the application to the marketing department of LESCO,

Page44
which forwards it to the concerned authority in charge of the relevant load.
 Lahore Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsGettingElectricityinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Submit application to LESCO and await site inspection 30 calendar days PKR 0
Agency : LESCO

The application form should be veri ed by a Licensed Electrical Contractor. It

should be accompanied with a copy of the computerized national identity
card (CNIC) of the owner, a copy of the approved building plan, a copy of the
approved layout plan, a copy of the trade license, the list of machinery, the
equipment, details of chiller units (in case of centrally air conditioned units),
a passport size photo of applicants, and a company letter head mentioning
name of authorizing person and his CNIC number.

The client submits the application to the marketing department of LESCO,

which forwards it to the concerned authority in charge of the relevant load.

2 Obtain site inspection by LESCO and receive estimate 30 calendar days PKR 0
Agency : LESCO

3 Obtain wiring inspection 14 calendar days PKR 1,480

Agency : Electrical Inspector from Punjab Energy Department

Contractor has to collect this test form from the Punjab Energy Department
(they issue one form per connection application). He/she only needs to give
the address of the property to obtain the form. The form certi es that the
internal wiring complies with technical and safety norms.

4 Pay estimate to LESCO, and submit the internal wiring test report 1 calendar day PKR 2,701,421.9
Agency : LESCO

The payment has to be made by cheque at the Bank counter of the utility.
The internal wiring test report form is obtained by the licensed contractor
testifying that the electrical wiring of the warehouse has been tested and
meets the required testing guidelines.

5 Receive external works and await nal inspection 28 calendar days PKR 0
Agency : Electrical Contractor

The contractor of the client carries out the external connection. First an
order has to be placed for the material through an accredited store. For the
transformer, the store will put in a request with LESCO for the inspection and
approval of the materials. Once approved, the contractor is noti ed to pay
and collect the transformer. The external works themselves include the
erection of poles, laying of HT/LT cables, and the completion of the PMT/Sub
Station. Upon completion of the works, the contractor informs LESCO so that
they can perform an inspection of the works - as well as the installation of
the meter.

6 Receive inspection of external works, meter installation and electricity 14 calendar days PKR 0
ow from LESCO
Agency : LESCO

After the electrical external works are approved by LESCO, they will come and
install the meter. Electricity can then be supplied.

Takes place simultaneously with previous procedure.

Page45
 After the electrical external works are approved by LESCO, they will come and
install the meter. Electricity can then be supplied.
Doing Business 2018 Pakistan
Takes place simultaneously with previous procedure.

DetailsGettingElectricityinLahoreMeasureofQuality

Answer

Reliability of supply and transparency of tari index (0-8) 0

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) 658.3

System average interruption frequency index (SAIFI) 410.8

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 1

Does the distribution utility use automated tools to restore service? Yes

Regulatory monitoring (0-1) 1

Does a regulatorthat is, an entity separate from the utilitymonitor the utilitys performance on Yes
reliability of supply?

Financial deterrents aimed at limiting outages (0-1) 1

Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes
exceed a certain cap?

Communication of tari s and tari changes (0-1) 0

Are e ective tari s available online? Yes

Link to the website, if available online http://www.lesco.gov

.pk/3000063

Are customers noti ed of a change in tari ahead of the billing cycle? No

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency
of tari index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
Page46
 Takes place simultaneously with previous procedure.

Doing Business 2018 Pakistan

DetailsGettingElectricityinLahoreMeasureofQuality

Answer

Reliability of supply and transparency of tari index (0-8) 0

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) 658.3

System average interruption frequency index (SAIFI) 410.8

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 1

Does the distribution utility use automated tools to restore service? Yes

Regulatory monitoring (0-1) 1

Does a regulatorthat is, an entity separate from the utilitymonitor the utilitys performance on Yes
reliability of supply?

Financial deterrents aimed at limiting outages (0-1) 1

Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes
exceed a certain cap?

Communication of tari s and tari changes (0-1) 0

Are e ective tari s available online? Yes

Link to the website, if available online http://www.lesco.gov

.pk/3000063

Are customers noti ed of a change in tari ahead of the billing cycle? No

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency
of tari index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Page47
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Doing Business 2018 Pakistan

Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions
property (number) about the parties to the transaction, the property and the procedures are
used.
Preregistration procedures (for example,
checking for liens, notarizing sales agreement,
The parties (buyer and seller):
paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
Registration procedures in the economy's largest
- Are located in the periurban area of the economys largest business city.
business citya.
For 11 economies the data are also collected for the second largest
Postregistration procedures (for example, filling business city.
title with municipality) - Are 100% domestically and privately owned.
Time required to complete each procedure - Have 50 employees each, all of whom are nationals.
(calendar days) - Perform general commercial activities.

Does not include time spent gathering

information The property (fully owned by the seller):
- Has a value of 50 times income per capita, which equals the sale price.
Each procedure starts on a separate day - though
- Is fully owned by the seller.
procedures that can be fully completed online
- Has no mortgages attached and has been under the same ownership for
are an exception to this rule
the past 10 years.
Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title
document is received disputes.
No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required.
Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters
property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000
square feet) is located on the land. The warehouse is 10 years old, is in
Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety
duties and taxes). standards, building codes and legal requirements. The property,
Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety.
payments are excluded - Will not be subject to renovations or additional construction following the
purchase.
Quality of land administration index (0-30)
- Has no trees, natural water sources, natural reserves or historical
Reliability of infrastructure index (0-8) monuments of any kind.
Transparency of information index (06) - Will not be used for special purposes, and no special permits, such as for
Geographic coverage index (08) residential use, industrial plants, waste storage or certain types of
agricultural activities, are required.
Land dispute resolution index (08)
- Has no occupants, and no other party holds a legal interest in it.
Equal access to property rights index (-20)

Registering Property - Karachi

Standard Property Transfer

Property value PKR 8,140,382.70

Page48
Doing Business 2018 Pakistan

Registering Property - Karachi

Standard Property Transfer

Property value PKR 8,140,382.70

City Covered Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Procedures (number) 8 6.8 4.6 1.00 (4 Economies)

Time (days) 208 111.6 22.3 1.00 (3 Economies)

Cost (% of property value) 4.2 6.9 4.2 0.00 (5 Economies)

Quality of the land administration index (0-30) 6.0 8.0 22.7 29.00 (Singapore)

FigureRegisteringPropertyinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

76.15: China (Rank: 41)

47.08: India (Rank: 154)

33.59: Karachi

27.67: Bangladesh (Rank: 185)

Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureRegisteringPropertyinKarachiProcedure,TimeandCost

Time Cost

4.5
200
4

3.5
Cost (% of property value)

150
3
Time (days)

2.5
100
2

1.5

50 1

0.5

0 0
1 *2 *3 4 5 6 7 8
Procedures (number) Page49
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.

Doing Business 2018 Pakistan

FigureRegisteringPropertyinKarachiProcedure,TimeandCost

Time Cost

4.5
200
4

3.5

Cost (% of property value)

150
3
Time (days)

2.5
100
2

1.5

50 1

0.5

0 0
1 *2 *3 4 5 6 7 8
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

FigureRegisteringPropertyinKarachiandcomparatoreconomiesMeasureofQuality

20 18.3
18
16
14
Index score

12
10 8.2 8.0
8
6.0
6 4.5
4
2
0

Karachi Bangladesh China India South Asia

DetailsRegisteringPropertyinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtaining a Non-Objection Certi cate 2 weeks PKR 1000

Agency : District O cer Revenue

The Deputy District O cer Revenue and the District O cer Revenue, at
Town and city level respectively, issue a No Objection Certi cate in favor of
the Seller permitting the sale of the property, provided that the entire
amount due and payable in respect of the property has been satis ed.

2 Advertisement of transaction in newspapers inviting objections one week and one PKR 10,000
Agency : Local Newspaper day

A Public notice is placed in two di erent newspapers having circulation of

100,000 copies, in English and in Urdu news paper, inviting objections/claims. Page50
 Karachi Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsRegisteringPropertyinKarachiProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtaining a Non-Objection Certi cate 2 weeks PKR 1000

Agency : District O cer Revenue

The Deputy District O cer Revenue and the District O cer Revenue, at
Town and city level respectively, issue a No Objection Certi cate in favor of
the Seller permitting the sale of the property, provided that the entire
amount due and payable in respect of the property has been satis ed.

2 Advertisement of transaction in newspapers inviting objections one week and one PKR 10,000
Agency : Local Newspaper day

A Public notice is placed in two di erent newspapers having circulation of

100,000 copies, in English and in Urdu news paper, inviting objections/claims.
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.

3 Conduct title search one week no cost

Agency : Sub-Registrar's o ce

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.

4 Hire deed writer or lawyer to draft sale purchase agreement 3-7 calendar days PKR 5,000-10,000
Agency : Deed writer or lawyer

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

agreement.

5 Payment of stamp duty, capital value tax, Town tax and registration fee 1 calendar day 2% of property price
Agency : Government Treasury or National Bank of Pakistan (stamp duty) + 1% of
property price
The following payments must be made: (i) Conveyance stamp duty 3% of
(registration fee)+ 1%
property value. (ii) The capital value tax (CVT) decreased from 4% to 2.5% of
Town Tax + 2.5 % of
the property value (Sindh Finance Act, 2010 which came into force on July 1st,
the property price
2010 amending the Sindh Urban Immoveable Property Tax Act, 1958, section
(Capital value tax)
4). After the 18th constitutional amendment (April, 2010), the CVT on
Capital value tax is
property was transferred to the provincial governments. CVT is applicable in
urban areas for residential property exceeding an area of one kanal and in not included into
case of commercial properties without any threshold of land area or size of cost estimates.
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 o ce of the Government.
The receipt of payment is taken to the Stamp O ce of the Government. The
Stamp o ce 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. Page51
 It is common practice in Pakistan to hire a lawyer to draft the sale purchase
Doing agreement.
Business 2018 Pakistan

5 Payment of stamp duty, capital value tax, Town tax and registration fee 1 calendar day 2% of property price
Agency : Government Treasury or National Bank of Pakistan (stamp duty) + 1% of
property price
The following payments must be made: (i) Conveyance stamp duty 3% of
(registration fee)+ 1%
property value. (ii) The capital value tax (CVT) decreased from 4% to 2.5% of
Town Tax + 2.5 % of
the property value (Sindh Finance Act, 2010 which came into force on July 1st,
the property price
2010 amending the Sindh Urban Immoveable Property Tax Act, 1958, section
(Capital value tax)
4). After the 18th constitutional amendment (April, 2010), the CVT on
Capital value tax is
property was transferred to the provincial governments. CVT is applicable in
urban areas for residential property exceeding an area of one kanal and in not included into
case of commercial properties without any threshold of land area or size of cost estimates.
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 o ce of the Government.
The receipt of payment is taken to the Stamp O ce of the Government. The
Stamp o ce 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.

6 Receipt of payment is taken to Stamp O ce 1 calendar day no cost

Agency : Stamp O ce of the Government

The receipt of payment obtained in Procedure 4 is taken to the Stamp O ce

of the Government. The Stamp o ce 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.

7 Execution and registration of the deed before the registration authority 6 months no cost
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, o cial 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.

8 Mutation one week PKR 1000

Agency : Relevant land authority

Once the registration process is completed, and the sale deed has been
collected from the registrar o ce, 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
Page52
property tax from the right owner.
 conduct post registration Procedures, such as changing the name at the
Doing utility companies,
Business 2018 property taxation and municipal services.
Pakistan

8 Mutation one week PKR 1000

Agency : Relevant land authority

Once the registration process is completed, and the sale deed has been
collected from the registrar o ce, 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.

Takes place simultaneously with previous procedure.

DetailsRegisteringPropertyinKarachiMeasureofQuality

Answer Score

Quality of the land administration index (0-30) 6.0

Reliability of infrastructure index (0-8) 0.0

What is the institution in charge of immovable property registration? O ce of

Registrar

In what format are the majority of title or deed records kept in the largest business city Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?

Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?

Institution in charge of the plans showing legal boundaries in the largest business city: Land Revenue
Department,
Board of
Revenue

In what format are the majority of maps of land plots kept in the largest business city Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?

Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?

Is the information recorded by the immovable property registration agency and the Separate 0.0
cadastral or mapping agency kept in a single database, in di erent but linked databases databases
or in separate databases?

Do the immovable property registration agency and cadastral or mapping agency use No 0.0
the same identi cation number for properties?

Transparency of information index (06) 2.5

Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0
immovable property registration in the largest business city? pays the o cial
fee

Is the list of documents that are required to complete any type of property transaction Yes, online 0.5
Page53
made publicly availableand if so, how?
 Takes place simultaneously with previous procedure.

Doing Business 2018 Pakistan

DetailsRegisteringPropertyinKarachiMeasureofQuality

Answer Score

Quality of the land administration index (0-30) 6.0

Reliability of infrastructure index (0-8) 0.0

What is the institution in charge of immovable property registration? O ce of

Registrar

In what format are the majority of title or deed records kept in the largest business city Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?

Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?

Institution in charge of the plans showing legal boundaries in the largest business city: Land Revenue
Department,
Board of
Revenue

In what format are the majority of maps of land plots kept in the largest business city Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?

Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?

Is the information recorded by the immovable property registration agency and the Separate 0.0
cadastral or mapping agency kept in a single database, in di erent but linked databases databases
or in separate databases?

Do the immovable property registration agency and cadastral or mapping agency use No 0.0
the same identi cation number for properties?

Transparency of information index (06) 2.5

Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0
immovable property registration in the largest business city? pays the o cial
fee

Is the list of documents that are required to complete any type of property transaction Yes, online 0.5
made publicly availableand if so, how?

Link for online access: https://sindhzam

een.gos.pk/demo
_Registries/pdf/d
oc_Registrationo
fProperty.pdf

Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available
and if so, how?

Link for online access:

Does the agency in charge of immovable property registration commit to delivering a No 0.0
legally binding document that proves property ownership within a speci c time frame
and if so, how does it communicate the service standard?
Page54
 Link for
Doing online access:
Business 2018 Pakistan

Does the agency in charge of immovable property registration commit to delivering a No 0.0
legally binding document that proves property ownership within a speci c time frame
and if so, how does it communicate the service standard?

Link for online access:

Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?

Contact information:

Are there publicly available o cial statistics tracking the number of transactions at the No 0.0
immovable property registration agency?

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 0.5
pays the o cial
fee

Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0
and if so, how?

Link for online access:

Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
speci c time frameand if so, how does it communicate the service standard?

Link for online access:

Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?

Contact information:

Geographic coverage index (08) 0.0

Are all privately held land plots in the economy formally registered at the immovable No 0.0
property registry?

Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?

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 (08) 3.5

Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?

Is the system of immovable property registration subject to a state or private No 0.0

guarantee?

Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information
certi ed by the immovable property registry?

Does the legal system require a control of legality of the documents necessary for a Yes 0.5
Page55
property transaction (e.g., checking the compliance of contracts with requirements of
 engaged in good faith in a property transaction based on erroneous information
certi Business
Doing ed by the immovable property registry?
2018 Pakistan

Does the legal system require a control of legality of the documents necessary for a Yes 0.5
property transaction (e.g., checking the compliance of contracts with requirements of
the law)?

If yes, who is responsible for checking the legality of the documents? Registrar;
Interested
Parties.

Does the legal system require veri cation of the identity of the parties to a property Yes 0.5
transaction?

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 District Courts
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 rst instance?

How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0
such a case (without appeal)? years

Are there any statistics on the number of land disputes in the rst instance? No 0.0

Number of land disputes in the largest business city in 2015:

Equal access to property rights index (-20) 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

Registering Property - Lahore

Standard Property Transfer

Property value PKR 8,140,382.70

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedures (number) 7 6.8 4.6 1.00 (4 Economies)

Time (days) 56 111.6 22.3 1.00 (3 Economies)

Cost (% of property value) 5.2 6.9 4.2 0.00 (5 Economies)

Quality of the land administration index (0-30) 10.5 8.0 22.7 29.00 (Singapore)

FigureRegisteringPropertyinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF) Page56

 Do married men and married women have equal ownership rights to property? Yes 0.0
Doing Business 2018 Pakistan

Registering Property - Lahore

Standard Property Transfer

Property value PKR 8,140,382.70

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Procedures (number) 7 6.8 4.6 1.00 (4 Economies)

Time (days) 56 111.6 22.3 1.00 (3 Economies)

Cost (% of property value) 5.2 6.9 4.2 0.00 (5 Economies)

Quality of the land administration index (0-30) 10.5 8.0 22.7 29.00 (Singapore)

FigureRegisteringPropertyinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

76.15: China (Rank: 41)

55.95: Lahore

47.08: India (Rank: 154)

27.67: Bangladesh (Rank: 185)

Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureRegisteringPropertyinLahoreProcedure,TimeandCost

Time Cost

50
5
Cost (% of property value)

40
4
Time (days)

30
3

20
2

10 1

0 0
Page57
1 2 3 4 5 6 7
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.

Doing Business 2018 Pakistan

FigureRegisteringPropertyinLahoreProcedure,TimeandCost

Time Cost

50
5

Cost (% of property value)

40
4
Time (days)

30
3

20
2

10 1

0 0
1 2 3 4 5 6 7
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

FigureRegisteringPropertyinLahoreandcomparatoreconomiesMeasureofQuality

20 18.3
18
16
14
Index score

12 10.5
10 8.2 8.0
8
6 4.5
4
2
0

Lahore Bangladesh China India South Asia

DetailsRegisteringPropertyinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtain the Fard (ownership and non-encumbrance certi cate) 2 calendar days PKR 150
Agency : LRMIS

To con rm ownership and records for the property the seller obtains the
Fard.

The Fard is an ownership certi cate with the details of the property, the
owner, the boundaries and any liens on the property.

2 Advertisement of a transaction in newspapers and inviting objections 8 calendar days PKR 10,000
Agency : Local Newspaper

The public notice in two di erent newspapers having circulation of 100,000 Page58
 Lahore Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsRegisteringPropertyinLahoreProcedure,TimeandCost

No. Procedure Time to Complete Associated Costs

1 Obtain the Fard (ownership and non-encumbrance certi cate) 2 calendar days PKR 150
Agency : LRMIS

To con rm ownership and records for the property the seller obtains the
Fard.

The Fard is an ownership certi cate with the details of the property, the
owner, the boundaries and any liens on the property.

2 Advertisement of a transaction in newspapers and inviting objections 8 calendar days PKR 10,000
Agency : Local Newspaper

The public notice in two di erent 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.

3 Hire the deed writer or the lawyer to draft the sale purchase agreement 3 calendar days PKR 8,000
Agency : Lawyer

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

agreement. People who cannot a ord lawyers hire a deed writer costing
around PKP 1,000.

4 Payment of the stamp duty, capital value tax, town tax and registration 1 calendar day 2% of the property
fee price (Capital value
Agency : Government Treasury or National Bank of Pakistan tax) (not included in
calculations)
Following payments must be made:
+ 3% of property
(i) Conveyance stamp duty 3% of property value.
price (stamp duty)
(ii) The capital value tax (CVT) is set at 2% of the property value (Punjab
+ 1% of property
Finance Act, 2010). (This tax is not included in cost calculations.)
(iii) 1% of property value for the registration fee. price (registration

(iv) 1% of the property value for the Town Tax fee)

+ 1% 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 o ce of the Government.

The receipt of payment is taken to the Stamp O ce of the Government. The

Stamp o ce 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.

5 Receipt of the payment is submitted to the Stamp O ce 1 calendar day no cost

Agency : Stamp O ce of the Government

The receipt of payment obtained in Procedure 4 is taken to the Stamp O ce

of the Government. The Stamp o ce 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 Page59
change of ownership.
 value (money deposited) on the Sale Deed. Such typed stamp paper will be
Doing presented
Businesslater
2018before the Registrar, who registers the change of ownership.
Pakistan

5 Receipt of the payment is submitted to the Stamp O ce 1 calendar day no cost

Agency : Stamp O ce of the Government

The receipt of payment obtained in Procedure 4 is taken to the Stamp O ce

of the Government. The Stamp o ce 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.

6 Execution and registration of a deed before the registration authority 38 calendar days PKR 500
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, o cial 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 ID of parties Original title deed of seller If 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.

7 Mutation 3 calendar days PKR 500

Agency : Land authority ofthe district where the company is located

Once the registration process described above is completed, and the sale
deed has been collected from the sub-registrar o ce, the mutation process
is carried out by the buyer at the relevant land authority for transfer of
ownership.

A property mutation is the change of the 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. The new owner needs to pick
up the application with the purchase agreement with the sub-registrar and
scanning o ces stamp and take it to the Directors o ce of the concerned
land authority. The owner is only the o cial owner once the mutation is
completed and the new title issued.

Takes place simultaneously with previous procedure.

DetailsRegisteringPropertyinLahoreMeasureofQuality

Answer Score

Quality of the land administration index (0-30) 10.5

Reliability of infrastructure index (0-8) 5.0

What is the institution in charge of immovable property registration? Land Records

Management
Information
System
Page60
In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0
 Takes place simultaneously with previous procedure.

Doing Business 2018 Pakistan

DetailsRegisteringPropertyinLahoreMeasureofQuality

Answer Score

Quality of the land administration index (0-30) 10.5

Reliability of infrastructure index (0-8) 5.0

What is the institution in charge of immovable property registration? Land Records

Management
Information
System

In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0
in a paper format or in a computerized format (scanned or fully digital)? ed

Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0
restrictions and the like)?

Institution in charge of the plans showing legal boundaries in the largest business city: Land Record
Management
Information
System

In what format are the majority of maps of land plots kept in the largest business city Computer/Scann 1.0
in a paper format or in a computerized format (scanned or fully digital)? ed

Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?

Is the information recorded by the immovable property registration agency and the Di erent 1.0
cadastral or mapping agency kept in a single database, in di erent but linked databases databases but
or in separate databases? linked

Do the immovable property registration agency and cadastral or mapping agency use No 0.0
the same identi cation number for properties?

Transparency of information index (06) 2.0

Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0
immovable property registration in the largest business city? pays the o cial
fee

Is the list of documents that are required to complete any type of property transaction Yes, online 0.5
made publicly availableand if so, how?

Link for online access:

Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0
immovable property registration in the largest business city made publicly available
and if so, how?

Link for online access:

Does the agency in charge of immovable property registration commit to delivering a No 0.0
legally binding document that proves property ownership within a speci c time frame
and if so, how does it communicate the service standard?

Link for online access:

Page61
 legally binding document that proves property ownership within a speci c time frame
and ifBusiness
Doing so, how does it communicate
2018 Pakistan the service standard?

Link for online access:

Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?

Contact information:

Are there publicly available o cial statistics tracking the number of transactions at the No 0.0
immovable property registration agency?

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 0.5
pays the o cial
fee

Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0
and if so, how?

Link for online access:

Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
speci c time frameand if so, how does it communicate the service standard?

Link for online access:

Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?

Contact information:

Geographic coverage index (08) 0.0

Are all privately held land plots in the economy formally registered at the immovable No 0.0
property registry?

Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?

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 (08) 3.5

Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?

Is the system of immovable property registration subject to a state or private No 0.0

guarantee?

Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information
certi ed by the immovable property registry?

Does the legal system require a control of legality of the documents necessary for a Yes 0.5
property transaction (e.g., checking the compliance of contracts with requirements of
the law)?

If yes, who is responsible for checking the legality of the documents? Registrar.
Page62
 property transaction (e.g., checking the compliance of contracts with requirements of
the law)?
Doing Business 2018 Pakistan

If yes, who is responsible for checking the legality of the documents? Registrar.

Does the legal system require veri cation of the identity of the parties to a property Yes 0.5
transaction?

If yes, who is responsible for verifying the identity of the parties? Registrar.

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 District Court
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 rst instance?

How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0
such a case (without appeal)? years

Are there any statistics on the number of land disputes in the rst instance? No 0.0

Number of land disputes in the largest business city in 2015:

Equal access to property rights index (-20) 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

Getting Credit
This topic explores two sets of issuesthe strength of credit reporting systems and the e ectiveness of collateral and bankruptcy
laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the
methodology for more information.

What the indicators measure Case study assumptions

Strength of legal rights index (012) Doing Business assesses the sharing of credit information and the legal
rights of borrowers and lenders with respect to secured transactions

Page63
 Do married men and married women have equal ownership rights to property? Yes 0.0
Doing Business 2018 Pakistan

Getting Credit
This topic explores two sets of issuesthe strength of credit reporting systems and the e ectiveness of collateral and bankruptcy
laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the
methodology for more information.

What the indicators measure Case study assumptions

Strength of legal rights index (012) Doing Business assesses the sharing of credit information and the legal
rights of borrowers and lenders with respect to secured transactions
Rights of borrowers and lenders through
through 2 sets of indicators. The depth of credit information index
collateral laws (0-10)
measures rules and practices a ecting the coverage, scope and
Protection of secured creditors rights through
accessibility of credit information available through a credit registry or a
bankruptcy laws (0-2)
credit bureau. The strength of legal rights index measures the degree to
Depth of credit information index (08) which collateral and bankruptcy laws protect the rights of borrowers and
lenders and thus facilitate lending. For each economy it is rst determined
Scope and accessibility of credit information
whether a unitary secured transactions system exists. Then two case
distributed by credit bureaus and credit
scenarios, case A and case B, are used to determine how a nonpossessory
registries (0-8)
security interest is created, publicized and enforced according to the law.
Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if
Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a
credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank.

Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow
Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set
registry as a percentage of adult population of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender

(BizBank) are used:
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economys
largest business city. For 11 economies the data are also collected for the
second largest business city.
- Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the
loan, ABC grants BizBank a nonpossessory security interest in one category
of movable assets, for example, its machinery or its inventory. ABC wants
to keep both possession and ownership of the collateral. In economies
where the law does not allow nonpossessory security interests in movable
property, ABC and BizBank use a duciary transfer-of-title arrangement (or
a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, oating

charge or any charge that gives BizBank a security interest over ABCs
combined movable assets (or as much of ABCs movable assets as
possible). ABC keeps ownership and possession of the assets.

Getting Credit - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies)

Page64
 possible). ABC keeps ownership and possession of the assets.

Doing Business 2018 Pakistan

Getting Credit - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies)

Depth of credit information index (0-8) 7 4.0 6.6 8.00 (34 Economies)

Credit registry coverage (% of adults) 9.9 3.8 18.3 100.00 (3 Economies)

Credit bureau coverage (% of adults) 6.7 14.1 63.7 100.00 (23 Economies)

FigureGettingCreditinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

75.00: India (Rank: 29)

60.00: China (Rank: 68)

45.00: Karachi

25.00: Bangladesh (Rank: 159)

Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting
credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit
information index.

FigureLegalRightsinKarachiandcomparatoreconomies

9
8
8
7
6
Index score

5 5.3
5
4
4
3
2
2
1
0

Karachi Bangladesh China India South Asia

DetailsLegalRightsinKarachi

Strength of legal rights index (0-12) 2

Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?
Page65
 Karachi Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsLegalRightsinKarachi

Strength of legal rights index (0-12) 2

Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes
requiring a speci c description of collateral?

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes
a speci c description of collateral?

May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No
or replacements of the original assets?

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No
obligations be secured between parties; and can the collateral agreement include a maximum amount for which the
assets are encumbered?

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No
and by asset type, with an electronic database indexed by debtor's name?

Does a notice-based collateral registry exist in which all functional equivalents can be registered? No

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No
performed online by any interested third party?

Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No
procedure?

Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No
reorganization procedure? Does the law protect secured creditors rights by providing clear grounds for relief from the
stay and/or sets a time limit for it?

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No
allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured
creditor to keep the asset in satisfaction of the debt?

FigureCreditInformationinKarachiandcomparatoreconomies

10

8
8
7 7
Index score

4.0
4

0
0

Karachi Bangladesh China India South Asia

DetailsCreditInformationinKarachi Page66
 0
0

Doing BusinessKarachi
2018 Pakistan Bangladesh China India South Asia

DetailsCreditInformationinKarachi

Credit Credit
Depth of credit information index (0-8) bureau registry Score

Are data on both firms and individuals distributed? No Yes 1

Are both positive and negative credit data distributed? Yes No 1

Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0
distributed?

Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1
than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0
for this component.)

Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1

By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1

Can banks and financial institutions access borrowers credit information online (for example, Yes Yes 1
through an online platform, a system-to-system connection or both)?

Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1
institutions assess the creditworthiness of borrowers?

Score ("yes" to either public bureau or private registry) 7

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.

Coverage Credit bureau Credit registry

Number of individuals 7,869,665 11,523,845

Number of firms 0 122,955

Total 7,869,665 11,646,800

Percentage of adult population 6.7 9.9

Getting Credit - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies)

Depth of credit information index (0-8) 7 4.0 6.6 8.00 (34 Economies)

Credit registry coverage (% of adults) 9.9 3.8 18.3 100.00 (3 Economies)

Credit bureau coverage (% of adults) 6.7 14.1 63.7 100.00 (23 Economies)

FigureGettingCreditinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF) Page67

 Percentage of adult population 6.7 9.9
Doing Business 2018 Pakistan

Getting Credit - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies)

Depth of credit information index (0-8) 7 4.0 6.6 8.00 (34 Economies)

Credit registry coverage (% of adults) 9.9 3.8 18.3 100.00 (3 Economies)

Credit bureau coverage (% of adults) 6.7 14.1 63.7 100.00 (23 Economies)

FigureGettingCreditinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

75.00: India (Rank: 29)

60.00: China (Rank: 68)

45.00: Lahore

25.00: Bangladesh (Rank: 159)

Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting
credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit
information index.

FigureLegalRightsinLahoreandcomparatoreconomies

9
8
8
7
6
Index score

5 5.3
5
4
4
3
2
2
1
0

Lahore Bangladesh China India South Asia

DetailsLegalRightsinLahore

Strength of legal rights index (0-12) 2

Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
Page68
enforcement of functional equivalents to security interests in movable assets exist in the economy?
 Lahore Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsLegalRightsinLahore

Strength of legal rights index (0-12) 2

Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes
requiring a speci c description of collateral?

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes
a speci c description of collateral?

May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No
or replacements of the original assets?

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No
obligations be secured between parties; and can the collateral agreement include a maximum amount for which the
assets are encumbered?

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No
and by asset type, with an electronic database indexed by debtor's name?

Does a notice-based collateral registry exist in which all functional equivalents can be registered? No

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No
performed online by any interested third party?

Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No
procedure?

Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No
reorganization procedure? Does the law protect secured creditors rights by providing clear grounds for relief from the
stay and/or sets a time limit for it?

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No
allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured
creditor to keep the asset in satisfaction of the debt?

FigureCreditInformationinLahoreandcomparatoreconomies

10

8
8
7 7
Index score

4.0
4

0
0

Lahore Bangladesh China India South Asia

DetailsCreditInformationinLahore Page69
 0
0

Doing BusinessLahore
2018 Pakistan Bangladesh China India South Asia

DetailsCreditInformationinLahore

Credit Credit
Depth of credit information index (0-8) bureau registry Score

Are data on both firms and individuals distributed? No Yes 1

Are both positive and negative credit data distributed? Yes No 1

Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0
distributed?

Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1
than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0
for this component.)

Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1

By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1

Can banks and financial institutions access borrowers credit information online (for example, Yes Yes 1
through an online platform, a system-to-system connection or both)?

Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1
institutions assess the creditworthiness of borrowers?

Score ("yes" to either public bureau or private registry) 7

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.

Coverage Credit bureau Credit registry

Number of individuals 7,869,665 11,523,845

Number of firms 0 122,955

Total 7,869,665 11,646,800

Percentage of adult population 6.7 9.9

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their
personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk
of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.

What the indicators measure Case study assumptions

Extent of disclosure index (010): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party assumptions about the business and the transaction.
transactions; Disclosure requirements for
related-party transactions The business (Buyer):
Extent of director liability index (010): Ability of - Is a publicly traded corporation listed on the economys most important
minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that
directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it
is assumed that Buyer is a large private company with multiple
Page70
transactions; Available legal remedies (damages,
 Percentage of adult population 6.7 9.9
Doing Business 2018 Pakistan

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their
personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk
of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.

What the indicators measure Case study assumptions

Extent of disclosure index (010): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party assumptions about the business and the transaction.
transactions; Disclosure requirements for
related-party transactions The business (Buyer):
Extent of director liability index (010): Ability of - Is a publicly traded corporation listed on the economys most important
minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that
directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it
transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple
disgorgement of profits, fines, imprisonment, shareholders.
rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may
legally act on behalf of Buyer where permitted, even if this is not speci cally
Ease of shareholder suits index (010): Access to
required by law.
internal corporate documents; Evidence
- Has a supervisory board (applicable to economies with a two-tier board
obtainable during trial and allocation of legal
system) on which 60% of the shareholder-elected members have been
expenses
appointed by Mr. James, who is Buyers controlling shareholder and a
Extent of conflict of interest regulation index
member of Buyers board of directors.
(010): Simple average of the extent of disclosure,
- Has not adopted any bylaws or articles of association that di er from
extent of director liability and ease of
default minimum standards and does not follow any nonmandatory codes,
shareholder indices
principles, recommendations or guidelines relating to corporate
Extent of shareholder rights index (0-10): governance.
Shareholders rights and role in major corporate - Is a manufacturing company with its own distribution network.
decisions
Extent of ownership and control index (0-10): The transaction involves the following details:
Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyers ve-
from undue board control and entrenchment member board.
Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of
Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores.
compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Sellers unused eet of trucks to
expand Buyers distribution of its food products, a proposal to which Buyer
Extent of shareholder governance index (010):
agrees. The price is equal to 10% of Buyers assets and is higher than the
Simple average of the extent of shareholders
market value.
rights, extent of ownership and control and
- The proposed transaction is part of the companys ordinary course of
extent of corporate transparency indices
business and is not outside the authority of the company.
Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained,
(010): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not
interest regulation and extent of shareholder fraudulent).
governance indices
- The transaction causes damages to Buyer. Shareholders sue Mr. James
and the other parties that approved the transaction.

Protecting Minority Investors - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand)
Page71
10)
 and the other parties that approved the transaction.

Doing Business 2018 Pakistan

Protecting Minority Investors - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand)
10)

Extent of shareholder governance index (0-10) 8 5.3 6.4 9.00 (Kazakhstan)

FigureProtectingMinorityInvestorsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

80.00: India (Rank: 4)

71.67: Karachi

56.67: Bangladesh (Rank: 76)

48.33: China (Rank: 119)

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier
scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of
con ict of interest regulation index and the extent of shareholder governance index.

FigureProtectingMinorityInvestorsinKarachiandcomparatoreconomiesMeasureofQuality

Karachi 7 7 6 9 8 6

Bangladesh 6 7 6 4 5 6

China 9 1 10 2 3 4

India 8 7 8 8 10 7

OECD high income 7.3 5.6 6.5 5.2 6.3 7.4

South Asia 6.1 5.9 5.6 5.8 6.5 6.4

0 10 20 30 40 50 60
Sub-Indicator Score

Extentofcorporatetransparencyindex(010) Extentofdirectorliabilityindex(010) Extentofdisclosureindex(010)

Extentofownershipandcontrolindex(010) Extentofshareholderrightsindex(010) Easeofshareholdersuitsindex(010)

DetailsProtectingMinorityInvestorsinKarachiMeasureofQuality Page72
 Extentofownershipandcontrolindex(010) Extentofshareholderrightsindex(010) Easeofshareholdersuitsindex(010)

Doing Business 2018 Pakistan

DetailsProtectingMinorityInvestorsinKarachiMeasureofQuality

Answer Score

Extent of con ict of interest regulation index (0-10) 6.3

Extent of disclosure index (0-10) 6

Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0
directors
excluding
interested
members

Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0

Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0
all material facts

Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0
the transaction
and on the
con ict of
interest

Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0
2) obligation

Extent of director liability index (0-10) 7

Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0
for the damage the transaction caused to Buyer? (0-1)

Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0
caused to Buyer? (0-2)

Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0
to Buyer (0-2)

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0
shareholders? (0-1)

Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0
shareholders? (0-1)

Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0
shareholders? (0-1)

Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0
negligently
concluded

Ease of shareholder suits index (0-10) 6

Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0
transaction documents? (0-1)

Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document
Page73
 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0
transaction
Doing documents?
Business 2018 (0-1)
Pakistan

Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document

Can the plainti request categories of documents from the defendant without No 0.0
identifying speci c ones? (0-1)

Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0
questions only

Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0

Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0
of the court

Extent of shareholder governance index (0-10) 8

Extent of shareholder rights index (0-10) 8

Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0

Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0
shareholders?

Must Buyer obtain its shareholders approval every time it issues new shares? No 0.0

Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0
shares?

Must shareholders approve the election and dismissal of the external auditor? Yes 1.0

Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0
shares approve?

Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0
member approval?

Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0
meeting of members?

Assuming that Buyer is a limited company, must all members consent to add a new No 0.0
member?

Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0
interest to the existing members before they can sell to non-members?

Extent of ownership and control index (0-10) 9

Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0
directors?

Must the board of directors include independent and nonexecutive board members? Yes 1.0

Can shareholders remove members of the board of directors without cause before the Yes 1.0
end of their term?

Must the board of directors include a separate audit committee exclusively comprising Yes 1.0
board members?

Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0
of Buyer?
Page74
 Must the board of directors include a separate audit committee exclusively comprising Yes 1.0
board
Doing members?2018
Business Pakistan

Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0
of Buyer?

Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0

Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0

Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0
disagreements among members?

Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0
o er to all shareholders upon acquiring 50% of Buyer?

Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0
maximum period set by law?

Extent of corporate transparency index (0-10) 7

Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0

Must Buyer disclose information about board members primary employment and Yes 1.0
directorships in other companies?

Must Buyer disclose the compensation of individual managers? No 0.0

Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0

Can shareholders representing 5% of Buyers share capital put items on the general No 0.0
meeting agenda?

Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0

Must Buyer disclose its audit reports to the public? Yes 1.0

Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0

Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0
the meeting agenda?

Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0
audited by an external auditor?

Protecting Minority Investors - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand)
10)

Extent of shareholder governance index (0-10) 8 5.3 6.4 9.00 (Kazakhstan)

FigureProtectingMinorityInvestorsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

Page75
0 100
 Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0
audited by an external auditor?
Doing Business 2018 Pakistan

Protecting Minority Investors - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand)
10)

Extent of shareholder governance index (0-10) 8 5.3 6.4 9.00 (Kazakhstan)

FigureProtectingMinorityInvestorsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

80.00: India (Rank: 4)

71.67: Lahore

56.67: Bangladesh (Rank: 76)

48.33: China (Rank: 119)

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier
scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of
con ict of interest regulation index and the extent of shareholder governance index.

FigureProtectingMinorityInvestorsinLahoreandcomparatoreconomiesMeasureofQuality

Lahore 7 7 6 9 8 6

Bangladesh 6 7 6 4 5 6

China 9 1 10 2 3 4

India 8 7 8 8 10 7

OECD high income 7.3 5.6 6.5 5.2 6.3 7.4

South Asia 6.1 5.9 5.6 5.8 6.5 6.4

0 10 20 30 40 50 60
Sub-Indicator Score

Extentofcorporatetransparencyindex(010) Extentofdirectorliabilityindex(010) Extentofdisclosureindex(010)

Extentofownershipandcontrolindex(010) Extentofshareholderrightsindex(010) Easeofshareholdersuitsindex(010)

Page76
con ict of interest regulation index and the extent of shareholder governance index.

Doing Business 2018 Pakistan

FigureProtectingMinorityInvestorsinLahoreandcomparatoreconomiesMeasureofQuality

Lahore 7 7 6 9 8 6

Bangladesh 6 7 6 4 5 6

China 9 1 10 2 3 4

India 8 7 8 8 10 7

OECD high income 7.3 5.6 6.5 5.2 6.3 7.4

South Asia 6.1 5.9 5.6 5.8 6.5 6.4

0 10 20 30 40 50 60
Sub-Indicator Score

Extentofcorporatetransparencyindex(010) Extentofdirectorliabilityindex(010) Extentofdisclosureindex(010)

Extentofownershipandcontrolindex(010) Extentofshareholderrightsindex(010) Easeofshareholdersuitsindex(010)

DetailsProtectingMinorityInvestorsinLahoreMeasureofQuality

Answer Score

Extent of con ict of interest regulation index (0-10) 6.3

Extent of disclosure index (0-10) 6

Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0
directors
excluding
interested
members

Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0

Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0
all material facts

Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0
the transaction
and on the
con ict of
interest

Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0
2) obligation

Extent of director liability index (0-10) 7

Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0
for the damage the transaction caused to Buyer? (0-1)

Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 Page77
 Extentofownershipandcontrolindex(010) Extentofshareholderrightsindex(010) Easeofshareholdersuitsindex(010)

Doing Business 2018 Pakistan

DetailsProtectingMinorityInvestorsinLahoreMeasureofQuality

Answer Score

Extent of con ict of interest regulation index (0-10) 6.3

Extent of disclosure index (0-10) 6

Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0
directors
excluding
interested
members

Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0

Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0
all material facts

Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0
the transaction
and on the
con ict of
interest

Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0
2) obligation

Extent of director liability index (0-10) 7

Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0
for the damage the transaction caused to Buyer? (0-1)

Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0
caused to Buyer? (0-2)

Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0
to Buyer (0-2)

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0
shareholders? (0-1)

Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0
shareholders? (0-1)

Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0
shareholders? (0-1)

Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0
negligently
concluded

Ease of shareholder suits index (0-10) 6

Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0
transaction documents? (0-1)

Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document
Page78
 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0
transaction
Doing documents?
Business 2018 (0-1)
Pakistan

Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document

Can the plainti request categories of documents from the defendant without No 0.0
identifying speci c ones? (0-1)

Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0
questions only

Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0

Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0
of the court

Extent of shareholder governance index (0-10) 8

Extent of shareholder rights index (0-10) 8

Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0

Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0
shareholders?

Must Buyer obtain its shareholders approval every time it issues new shares? No 0.0

Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0
shares?

Must shareholders approve the election and dismissal of the external auditor? Yes 1.0

Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0
shares approve?

Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0
member approval?

Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0
meeting of members?

Assuming that Buyer is a limited company, must all members consent to add a new No 0.0
member?

Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0
interest to the existing members before they can sell to non-members?

Extent of ownership and control index (0-10) 9

Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0
directors?

Must the board of directors include independent and nonexecutive board members? Yes 1.0

Can shareholders remove members of the board of directors without cause before the Yes 1.0
end of their term?

Must the board of directors include a separate audit committee exclusively comprising Yes 1.0
board members?

Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0
of Buyer?
Page79
 Must the board of directors include a separate audit committee exclusively comprising Yes 1.0
board
Doing members?2018
Business Pakistan

Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0
of Buyer?

Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0

Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0

Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0
disagreements among members?

Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0
o er to all shareholders upon acquiring 50% of Buyer?

Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0
maximum period set by law?

Extent of corporate transparency index (0-10) 7

Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0

Must Buyer disclose information about board members primary employment and Yes 1.0
directorships in other companies?

Must Buyer disclose the compensation of individual managers? No 0.0

Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0

Can shareholders representing 5% of Buyers share capital put items on the general No 0.0
meeting agenda?

Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0

Must Buyer disclose its audit reports to the public? Yes 1.0

Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0

Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0
the meeting agenda?

Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0
audited by an external auditor?

Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well
as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project
was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 December 31, 2016).

Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an
economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data
shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost
across economies.

The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes.
See the methodology for more information.

What the indicators measure Case study assumptions

Page80
Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory
 Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0
audited by an external auditor?
Doing Business 2018 Pakistan

Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well
as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project
was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 December 31, 2016).

Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an
economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data
shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost
across economies.

The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes.
See the methodology for more information.

What the indicators measure Case study assumptions

Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory
2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures
joint ling and payment) the administrative burden of paying taxes, contributions and dealing with
post ling processes. Information is also compiled on frequency of ling
Total number of taxes and contributions paid,
and payments, time taken to comply with tax laws, time taken to comply
including consumption taxes (value added tax,
with the requirements of post ling processes and time waiting.
sales tax or goods and service tax)
Method and frequency of filing and payment To make data comparable across economies, several assumptions are
used:
Time required to comply with 3 major taxes
- TaxpayerCo is a medium-size business that started operations on January
(hours per year)
1, 2015. It produces ceramic owerpots and sells them at retail. All taxes
Collecting information, computing tax payable and contributions recorded are paid in the second year of operation
Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at
all levels of government.
Arranging payment or withholding
Preparing separate tax accounting books, if The VAT refund process:
required
- In June 2016, TaxpayerCo. makes a large capital purchase: the value of the
Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally
all taxes) spread per month (1,050 times income per capita divided by 12) and cost
of goods sold are equally expensed per month (875 times income per
Profit or corporate income tax
capita divided by 12). The machinery seller is registered for VAT and excess
Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive
employer months if the VAT rate is the same for inputs, sales and the machine and
Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT
Dividend, capital gains, financial transactions in June 2016.
taxes The corporate income tax audit process:
Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect
tax depreciation rates, or incorrectly treating an expense as tax deductible)
Post ling Index
leads to an incorrect income tax return and a corporate income
Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily
Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is
Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits
corrected information after the deadline for submitting the annual tax
Time to complete a corporate income tax audit
return, but within the tax assessment period.

Paying Taxes - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer
Page81
 return, but within the tax assessment period.

Doing Business 2018 Pakistan

Paying Taxes - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Payments (number per year) 47 28.5 10.9 3 (Hong Kong SAR,

China)

Time (hours per year) 311.5 277.3 160.7 55 (Luxembourg)

Total tax and contribution rate (% of profit) 33.8 43.0 40.1 18.47% (32 Economies)

Postfiling index (0-100) 10.49 41.05 83.45 99.38 (Estonia)

FigurePayingTaxesinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

66.06: India (Rank: 119)

62.90: China (Rank: 130)

56.13: Bangladesh (Rank: 152)

46.43: Karachi

Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of
paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators
number of tax payments. time, total tax rate and post ling index with a threshold and a nonlinear transformation applied to one of
the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to
frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall
distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total
tax rate below this threshold receive the same score as the economy at the threshold.

FigurePayingTaxesinKarachiandcomparatoreconomiesMeasureofQuality

60
49.08 49.31
50 44.36
41.05
40
Index score

30

20
10.49
10

Karachi Bangladesh China India South Asia

DetailsPayingTaxesinKarachi

Total tax and Page82

Tax or mandatory Payments Notes on Time contribution rate (% Notes on
Doing Business 2018 Pakistan

FigurePayingTaxesinKarachiandcomparatoreconomiesMeasureofQuality

60
49.08 49.31
50 44.36
41.05
40
Index score

30

20
10.49
10

Karachi Bangladesh China India South Asia

DetailsPayingTaxesinKarachi

Total tax and

Tax or mandatory Payments Notes on Time contribution rate (% Notes on
contribution (number) Payments (hours) Statutory tax rate Tax base of profit) TTR

Corporate income 5 40 25% taxable profit 18.29

tax

Employer paid - 12 5% or PKR 700 per gross salaries 7.06

Pension employee per
contributions month

Social security 12 40 6% up to PKR gross salaries 6.46

contributions 15,000 wage
ceiling

Education cess 1 PKR 100 per per worker 0.93

month

Property tax 1 18% (including annual rental 0.89

10% discount) value of property

Tax on interest 0 10% interest 0.26 included

in other
taxes

Professional tax 1 PKR 10,000 fixed fee 0.14

Vehicle tax 1 varies fixed fee 0.07

depending on
type of vehicle

Stamp duty 1 rate based on 0.00

contract value

Employee paid - 0 jointly 1% or PKR 140 per gross salaries 0.00 withheld
Pension employee per
contributions month

Fuel tax 1 25% included into fuel 0.00 small

price amount

Goods and sales 12 232 17% value added 0.00 not Page83
 Pension employee per
contributions
Doing Business 2018 Pakistan month

Fuel tax 1 25% included into fuel 0.00 small

price amount

Goods and sales 12 232 17% value added 0.00 not

tax (VAT) included

Totals 47 311.5 33.8

DetailsPayingTaxesinKarachiTaxbyType

Taxes by type Answer

Profit tax (% of profit) 18.3

Labor tax and contributions (% of profit) 14.5

Other taxes (% of profit) 1.1

DetailsPayingTaxesinKarachiMeasureofQuality

Answer Score

Post ling index (0-100) 10.49

VAT refunds

Does VAT exist? Yes

Does a VAT refund process exist per the case study? Yes

Restrictions on VAT refund process Carry forward for

6 months

Percentage of cases exposed to a VAT audit (%) 50% - 74%

Is there a mandatory carry forward period? Yes

Time to comply with VAT refund (hours) 84.0 0

Time to obtain a VAT refund (weeks) 79.0 0

Corporate income tax audits

Does corporate income tax exist? Yes

Percentage of cases exposed to a corporate income tax audit (%) 25% - 49%

Time to comply with a corporate income tax audit (hours) 69.0 0

Time to complete a corporate income tax audit (weeks) 18.6 41.96

Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named
corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with
a corporate income tax audit and time to complete a corporate income tax audit. Page84
N/A = Not applicable.
corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
Doing
The Business
hours for Social 2018
Security Pakistan
include all the hours for labor taxes and mandatory contributions in general.
The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.

Paying Taxes - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Payments (number per year) 47 28.5 10.9 3 (Hong Kong SAR,

China)

Time (hours per year) 311.5 277.3 160.7 55 (Luxembourg)

Total tax and contribution rate (% of profit) 33.8 43.0 40.1 18.47% (32 Economies)

Postfiling index (0-100) 10.49 41.05 83.45 99.38 (Estonia)

FigurePayingTaxesinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

66.06: India (Rank: 119)

62.90: China (Rank: 130)

56.13: Bangladesh (Rank: 152)

46.43: Lahore

Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of
paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators
number of tax payments. time, total tax rate and post ling index with a threshold and a nonlinear transformation applied to one of
the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to
frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall
distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total
tax rate below this threshold receive the same score as the economy at the threshold.

FigurePayingTaxesinLahoreandcomparatoreconomiesMeasureofQuality

60
49.08 49.31
50 44.36
41.05
40
Index score

30

20
10.49
10

Lahore Bangladesh China India South Asia Page85

a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.
Doing Business 2018 Pakistan

Paying Taxes - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Payments (number per year) 47 28.5 10.9 3 (Hong Kong SAR,

China)

Time (hours per year) 311.5 277.3 160.7 55 (Luxembourg)

Total tax and contribution rate (% of profit) 33.8 43.0 40.1 18.47% (32 Economies)

Postfiling index (0-100) 10.49 41.05 83.45 99.38 (Estonia)

FigurePayingTaxesinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

66.06: India (Rank: 119)

62.90: China (Rank: 130)

56.13: Bangladesh (Rank: 152)

46.43: Lahore

Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of
paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators
number of tax payments. time, total tax rate and post ling index with a threshold and a nonlinear transformation applied to one of
the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to
frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall
distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total
tax rate below this threshold receive the same score as the economy at the threshold.

FigurePayingTaxesinLahoreandcomparatoreconomiesMeasureofQuality

60
49.08 49.31
50 44.36
41.05
40
Index score

30

20
10.49
10

Lahore Bangladesh China India South Asia

DetailsPayingTaxesinLahore
Page86
Doing Business 2018 Pakistan

FigurePayingTaxesinLahoreandcomparatoreconomiesMeasureofQuality

60
49.08 49.31
50 44.36
41.05
40
Index score

30

20
10.49
10

Lahore Bangladesh China India South Asia

DetailsPayingTaxesinLahore

Total tax and

Tax or mandatory Payments Notes on Time contribution rate (% Notes on
contribution (number) Payments (hours) Statutory tax rate Tax base of profit) TTR

Corporate income 5 40 25% taxable profit 18.29

tax

Employer paid - 12 5% or PKR 700 per gross salaries 7.06

Pension employee per
contributions month

Social security 12 40 6% up to PKR gross salaries 6.46

contributions 15,000 wage
ceiling

Education cess 1 PKR 100 per per worker 0.93

month

Property tax 1 18% (including annual rental 0.89

10% discount) value of property

Tax on interest 0 10% interest 0.26 included

in other
taxes

Professional tax 1 PKR 10,000 fixed fee 0.14

Vehicle tax 1 varies fixed fee 0.07

depending on
type of vehicle

Stamp duty 1 rate based on 0.00

contract value

Employee paid - 0 jointly 1% or PKR 140 per gross salaries 0.00 withheld
Pension employee per
contributions month

Fuel tax 1 25% included into fuel 0.00 small

price amount

Goods and sales 12 232 17% value added 0.00 not Page87
 Pension employee per
contributions
Doing Business 2018 Pakistan month

Fuel tax 1 25% included into fuel 0.00 small

price amount

Goods and sales 12 232 17% value added 0.00 not

tax (VAT) included

Totals 47 311.5 33.8

DetailsPayingTaxesinLahoreTaxbyType

Taxes by type Answer

Profit tax (% of profit) 18.3

Labor tax and contributions (% of profit) 14.5

Other taxes (% of profit) 1.1

DetailsPayingTaxesinLahoreMeasureofQuality

Answer Score

Post ling index (0-100) 10.49

VAT refunds

Does VAT exist? Yes

Does a VAT refund process exist per the case study? Yes

Restrictions on VAT refund process Carry forward for

6 months

Percentage of cases exposed to a VAT audit (%) 50% - 74%

Is there a mandatory carry forward period? Yes

Time to comply with VAT refund (hours) 84.0 0

Time to obtain a VAT refund (weeks) 79.0 0

Corporate income tax audits

Does corporate income tax exist? Yes

Percentage of cases exposed to a corporate income tax audit (%) 25% - 49%

Time to comply with a corporate income tax audit (hours) 69.0 0

Time to complete a corporate income tax audit (weeks) 18.6 41.96

Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named
corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with
a corporate income tax audit and time to complete a corporate income tax audit. Page88
N/A = Not applicable.
corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
Doing
The Business
hours for Social 2018
Security Pakistan
include all the hours for labor taxes and mandatory contributions in general.
The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business
measures the time and cost (excluding tari s) associated with three sets of proceduresdocumentary compliance, border
compliance and domestic transportwithin the overall process of exporting or importing a shipment of goods. The most recent
round of data collection for the project was completed in June 2017. See the methodology for more information.

Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research
questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems.
With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic
platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing
business. The new dataset on EDI and SW systems is available here.

What the indicators measure Case study assumptions

Documentary compliance To make the data comparable across economies, a few assumptions are
made about the traded goods and the transactions:
Obtaining, preparing and submitting documents
during transport, clearance, inspections and port
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22
or border handling in origin economy
days are recorded as 2224=528 hours). If customs clearance takes 7.5
Obtaining, preparing and submitting documents
hours, the data are recorded as is. Alternatively, suppose documents are
required by destination economy and any transit
submitted to a customs agency at 8:00a.m., are processed overnight and
economies
can be picked up at 8:00a.m. the next day. The time for customs clearance
Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24
practice, including electronic submissions of hours.
information

Border compliance Cost: Insurance cost and informal payments for which no receipt is issued
are excluded from the costs recorded. Costs are reported in U.S. dollars.
Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on
Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire.
than 20% of shipments) Contributors are private sector experts in international trade logistics and
Handling and inspections that take place at the are informed about exchange rates.
economys port or border
Assumptions of the case study: - For all 190 economies covered by Doing
Domestic transport
Business, it is assumed a shipment is in a warehouse in the largest
Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the
warehouse or port/border largest business city of the importing economy. - It is assumed each
Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708)
Traffic delays and road police checks while from its natural import partnerthe economy from which it imports the
shipment is en route largest value (price times quantity) of auto parts. It is assumed each
economy exports the product of its comparative advantage (de ned by the
largest export value) to its natural export partnerthe economy that is the
largest purchaser of this product. Shipment value is assumed to be
$50,000. - The mode of transport is the one most widely used for the
chosen export or import product and the trading partner, as is the
seaport, or land border crossing. - All electronic information submissions
requested by any government agency in connection with the shipment are
considered to be documents obtained, prepared and submitted during the
export or import process. - A port or border is a place (seaport, airport or
land border crossing) where merchandise can enter or leave an economy. -
Relevant government agencies include customs, port authorities, road
police, border guards, standardization agencies, ministries or departments
Page89
of agriculture or industry, national security agencies and any other
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.
Doing Business 2018 Pakistan

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business
measures the time and cost (excluding tari s) associated with three sets of proceduresdocumentary compliance, border
compliance and domestic transportwithin the overall process of exporting or importing a shipment of goods. The most recent
round of data collection for the project was completed in June 2017. See the methodology for more information.

Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research
questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems.
With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic
platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing
business. The new dataset on EDI and SW systems is available here.

What the indicators measure Case study assumptions

Documentary compliance To make the data comparable across economies, a few assumptions are
made about the traded goods and the transactions:
Obtaining, preparing and submitting documents
during transport, clearance, inspections and port
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22
or border handling in origin economy
days are recorded as 2224=528 hours). If customs clearance takes 7.5
Obtaining, preparing and submitting documents
hours, the data are recorded as is. Alternatively, suppose documents are
required by destination economy and any transit
submitted to a customs agency at 8:00a.m., are processed overnight and
economies
can be picked up at 8:00a.m. the next day. The time for customs clearance
Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24
practice, including electronic submissions of hours.
information

Border compliance Cost: Insurance cost and informal payments for which no receipt is issued
are excluded from the costs recorded. Costs are reported in U.S. dollars.
Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on
Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire.
than 20% of shipments) Contributors are private sector experts in international trade logistics and
Handling and inspections that take place at the are informed about exchange rates.
economys port or border
Assumptions of the case study: - For all 190 economies covered by Doing
Domestic transport
Business, it is assumed a shipment is in a warehouse in the largest
Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the
warehouse or port/border largest business city of the importing economy. - It is assumed each
Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708)
Traffic delays and road police checks while from its natural import partnerthe economy from which it imports the
shipment is en route largest value (price times quantity) of auto parts. It is assumed each
economy exports the product of its comparative advantage (de ned by the
largest export value) to its natural export partnerthe economy that is the
largest purchaser of this product. Shipment value is assumed to be
$50,000. - The mode of transport is the one most widely used for the
chosen export or import product and the trading partner, as is the
seaport, or land border crossing. - All electronic information submissions
requested by any government agency in connection with the shipment are
considered to be documents obtained, prepared and submitted during the
export or import process. - A port or border is a place (seaport, airport or
land border crossing) where merchandise can enter or leave an economy. -
Relevant government agencies include customs, port authorities, road
police, border guards, standardization agencies, ministries or departments
of agriculture or industry, national security agencies and any other
government authorities.

Page90
 of agriculture or industry, national security agencies and any other
Doing Business 2018 Pakistan government authorities.

Trading across Borders - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Time to export: Border compliance (hours) 75 59.4 12.7 0 (17 Economies)

Cost to export: Border compliance (USD) 406 369.8 149.9 0.00 (19 Economies)

Time to export: Documentary compliance 55 77.0 2.4 1.0 (25 Economies)

(hours)

Cost to export: Documentary compliance (USD) 257 179.5 35.4 0.00 (19 Economies)

Time to import: Border compliance (hours) 129 113.8 8.7 0.00 (21 Economies)

Cost to import: Border compliance (USD) 937 638.0 111.6 0.00 (27 Economies)

Time to import: Documentary compliance 143 104.7 3.5 1.0 (30 Economies)
(hours)

Cost to import: Documentary compliance (USD) 735 341.6 25.6 0.00 (30 Economies)

FigureTradingacrossBordersinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

69.91: China (Rank: 97)

58.56: India (Rank: 146)

41.94: Karachi

34.86: Bangladesh (Rank: 173)

Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for
trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for
documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking).

FigureTradingacrossBordersinKarachiTimeandCost

Time Cost

160 937 1000

143
140 129
735 800
120
Time (hours)

Cost (USD)

100 600
80
75
406
60
55 400
257
40
200
20
Page91
Doing Business 2018 Pakistan

FigureTradingacrossBordersinKarachiTimeandCost

Time Cost

160 937 1000

143
140 129
735 800
120
Time (hours)

Cost (USD)
100 600
80
75
406
60
55 400
257
40
200
20

0 0

Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance

DetailsTradingacrossBordersinKarachi

Characteristics Export Import

Product HS 52 : Cotton HS 8708: Parts and accessories of motor vehicles

Trade partner China Thailand

Border Qasim port Qasim port

Distance (km) 54 54

Domestic transport time (hours) 6 4

Domestic transport cost (USD) 200 200

DetailsTradingacrossBordersinKarachiComponentsofBorderCompliance

Time to Complete Associated Costs

(hours) (USD)

Export: Clearance and inspections required by customs authorities 30.9 150.0

Export: Clearance and inspections required by agencies other than customs 24.0 100.0

Export: Port or border handling 75.0 156.0

Import: Clearance and inspections required by customs authorities 34.0 285.7

Import: Clearance and inspections required by agencies other than customs 89.6 342.9

Import: Port or border handling 120.0 308.0

DetailsTradingacrossBordersinKarachiTradeDocuments

Export Import

Bill of lading Bill of lading

Packing list Packing list Page92

Domestic transport cost (USD) 200 200

Doing Business 2018 Pakistan

DetailsTradingacrossBordersinKarachiComponentsofBorderCompliance

Time to Complete Associated Costs

(hours) (USD)

Export: Clearance and inspections required by customs authorities 30.9 150.0

Export: Clearance and inspections required by agencies other than customs 24.0 100.0

Export: Port or border handling 75.0 156.0

Import: Clearance and inspections required by customs authorities 34.0 285.7

Import: Clearance and inspections required by agencies other than customs 89.6 342.9

Import: Port or border handling 120.0 308.0

DetailsTradingacrossBordersinKarachiTradeDocuments

Export Import

Bill of lading Bill of lading

Packing list Packing list

Certificate of origin Certificate of origin

Inspection report Pre-shipment inspection certificate

Insurance certificate Technical standards certificate

Export General Manifest (EGM) Form I

E Form (with Commercial Bank) Import general manifest

Customs Export Declaration Import declaration

Price certificate SOLAS certificate

Phytosanitary certificate

Gate pass

SOLAS certificate

Trading across Borders - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Time to export: Border compliance (hours) 75 59.4 12.7 0 (17 Economies)

Cost to export: Border compliance (USD) 406 369.8 149.9 0.00 (19 Economies)

Time to export: Documentary compliance 55 77.0 2.4 1.0 (25 Economies)

(hours)
Page93
 SOLAS certificate
Doing Business 2018 Pakistan

Trading across Borders - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Time to export: Border compliance (hours) 75 59.4 12.7 0 (17 Economies)

Cost to export: Border compliance (USD) 406 369.8 149.9 0.00 (19 Economies)

Time to export: Documentary compliance 55 77.0 2.4 1.0 (25 Economies)

(hours)

Cost to export: Documentary compliance (USD) 257 179.5 35.4 0.00 (19 Economies)

Time to import: Border compliance (hours) 129 113.8 8.7 0.00 (21 Economies)

Cost to import: Border compliance (USD) 937 638.0 111.6 0.00 (27 Economies)

Time to import: Documentary compliance 143 104.7 3.5 1.0 (30 Economies)
(hours)

Cost to import: Documentary compliance (USD) 735 341.6 25.6 0.00 (30 Economies)

FigureTradingacrossBordersinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

69.91: China (Rank: 97)

58.56: India (Rank: 146)

41.94: Lahore

34.86: Bangladesh (Rank: 173)

Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for
trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for
documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking).

FigureTradingacrossBordersinLahoreTimeandCost

Time Cost

160 937 1000

143
140 129
735 800
120
Time (hours)

Cost (USD)

100 600
80 75
406
60 55 400
257
40
200
20 Page94
Doing Business 2018 Pakistan

FigureTradingacrossBordersinLahoreTimeandCost

Time Cost

160 937 1000

143
140 129
735 800
120
Time (hours)

Cost (USD)
100 600
80 75
406
60 55 400
257
40
200
20

0 0

Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance

DetailsTradingacrossBordersinLahore

Characteristics Export Import

Product HS 52 : Cotton HS 8708: Parts and accessories of motor vehicles

Trade partner China Thailand

Border Qasim port Qasim port

Distance (km) 1296 1296

Domestic transport time (hours) 48 48

Domestic transport cost (USD) 500 500

DetailsTradingacrossBordersinLahoreComponentsofBorderCompliance

Time to Complete Associated Costs

(hours) (USD)

Export: Clearance and inspections required by customs authorities 30.9 150.0

Export: Clearance and inspections required by agencies other than customs 24.0 100.0

Export: Port or border handling 75.0 156.0

Import: Clearance and inspections required by customs authorities 34.0 285.7

Import: Clearance and inspections required by agencies other than customs 89.6 342.9

Import: Port or border handling 120.0 308.0

DetailsTradingacrossBordersinLahoreTradeDocuments

Export Import

Bill of lading Bill of lading

Packing list Packing list Page95

 Domestic transport cost (USD) 500 500

Doing Business 2018 Pakistan

DetailsTradingacrossBordersinLahoreComponentsofBorderCompliance

Time to Complete Associated Costs

(hours) (USD)

Export: Clearance and inspections required by customs authorities 30.9 150.0

Export: Clearance and inspections required by agencies other than customs 24.0 100.0

Export: Port or border handling 75.0 156.0

Import: Clearance and inspections required by customs authorities 34.0 285.7

Import: Clearance and inspections required by agencies other than customs 89.6 342.9

Import: Port or border handling 120.0 308.0

DetailsTradingacrossBordersinLahoreTradeDocuments

Export Import

Bill of lading Bill of lading

Packing list Packing list

Certificate of origin Certificate of origin

Inspection report Pre-shipment inspection certificate

Insurance certificate Technical standards certificate

Export General Manifest (EGM) Form I

E Form (with Commercial Bank) Import General Manifest

Customs Export Declaration Import declaration

Gate pass SOLAS certificate

Price certificate issued by the All Pakistan Textile Mills Association

Phytosanitary certificate

SOLAS certificate

Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance
court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that
promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the
methodology for more information.

What the indicators measure Case study assumptions

Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract
courts (calendar days) between 2 domestic businesses. The case study assumes that thePage96
court
 SOLAS certificate
Doing Business 2018 Pakistan

Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance
court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that
promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the
methodology for more information.

What the indicators measure Case study assumptions

Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract
courts (calendar days) between 2 domestic businesses. The case study assumes that the court
hears an expert on the quality of the goods in dispute. This distinguishes
Time to file and serve the case
the case from simple debt enforcement.
Time for trial and to obtain the judgment
To make the data comparable across economies, Doing Business uses
Time to enforce the judgment
several assumptions about the case:
Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller
courts (% of claim) and Buyer), both located in the economys largest business city. For 11
Attorney fees economies the data are also collected for the second largest business city.
- The buyer orders custom-made goods, then fails to pay.
Court fees
- The value of the dispute is 200% of the income per capita or the
Enforcement fees equivalent in local currency of USD 5,000, whichever is greater.
Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over
commercial cases worth 200% of income per capita or $5,000.
Court structure and proceedings (-1-5)
- The seller requests a pretrial attachment to secure the claim.
Case management (0-6) - The dispute on the quality of the goods requires an expert opinion.
Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyers
movable assets.

Enforcing Contracts - Karachi

Standardized Case

Claim value PKR 533,051.00

Court name Karachi District Court

City Covered Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Time (days) 1096 1101.6 577.8 164.00 (Singapore)

Cost (% of claim value) 18.1 29.6 21.5 9.00 (Iceland)

Quality of judicial processes index (0-18) 6.0 7.0 11.0 15.50 (Australia)

FigureEnforcingContractsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100
Page97
78.23: China (Rank: 5)
Quality Business
Doing of judicial processes index (0-18)
2018 Pakistan 6.0 7.0 11.0 15.50 (Australia)

FigureEnforcingContractsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

78.23: China (Rank: 5)

44.36: Karachi

40.76: India (Rank: 164)

22.21: Bangladesh (Rank: 189)

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for
enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureEnforcingContractsinKarachiTimeandCost

Time Cost

1600 80
1442 1445
1400 66.8 70

Cost (% of claim value)

1200 1096 1101.6 60
Time (days)

1000 50

800 40
31.0 577.8 29.6
600 496.3 30
21.5
16.2 18.1
400 20

200 10

0 0

Bangladesh China India Karachi OECD high income South Asia

FigureEnforcingContractsinKarachiandcomparatoreconomiesMeasureofQuality

Karachi 2 1.5 0.5 2

Bangladesh 3 1 0.5 3

China 3 4.5 3 4.5

India 2.3 1.5 2 4.5

OECD high income 2.5 2.9 2 3.6

South Asia 2.3 1.1 0.8 3.2

0 2 4 6 8 10 12 14
Page98
16
 0 0

Bangladesh China India Karachi OECD high income South Asia

Doing Business 2018 Pakistan

FigureEnforcingContractsinKarachiandcomparatoreconomiesMeasureofQuality

Karachi 2 1.5 0.5 2

Bangladesh 3 1 0.5 3

China 3 4.5 3 4.5

India 2.3 1.5 2 4.5

OECD high income 2.5 2.9 2 3.6

South Asia 2.3 1.1 0.8 3.2

0 2 4 6 8 10 12 14 16
Sub-Indicator Score

Alternativedisputeresolution(03) Casemanagement(06) Courtautomation(04) Courtstructureandproceedings(15)

DetailsEnforcingContractsinKarachi

Indicator

Time (days) 1096

Filing and service 96

Trial and judgment 700

Enforcement of judgment 300

Cost (% of claim value) 18.1

Attorney fees 11

Court fees 5.9

Enforcement fees 1.2

Quality of judicial processes index (0-18) 6.0

Court structure and proceedings (-1-5) 2.0

Case management (0-6) 1.5

Court automation (0-4) 0.5

Alternative dispute resolution (0-3) 2.0

DetailsEnforcingContractsinKarachiMeasureofQuality
Page99
 Alternative dispute resolution (0-3) 2.0

Doing Business 2018 Pakistan

DetailsEnforcingContractsinKarachiMeasureofQuality

Answer Score

Quality of judicial processes index (0-18) 6.0

Court structure and proceedings (-1-5) 2.0

1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0

2. Small claims court 1.5

2.a. Is there a small claims court or a fast-track procedure for small claims? Yes

2.b. If yes, is self-representation allowed? Yes

3. Is pretrial attachment available? Yes 1.0

4. Are new cases assigned randomly to judges? Yes, but manual 0.5

5. Does a woman's testimony carry the same evidentiary weight in court as a man's? No -1.0

Case management (0-6) 1.5

1. Time standards 0.5

1.a. Are there laws setting overall time standards for key court events in a civil case? Yes

1.b. If yes, are the time standards set for at least three court events? Yes

1.c. Are these time standards respected in more than 50% of cases? No

2. Adjournments 0.0

2.a. Does the law regulate the maximum number of adjournments that can be No
granted?

2.b. Are adjournments limited to unforeseen and exceptional circumstances? No

2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.

3. Can two of the following four reports be generated about the competent court: (i) No 0.0
time to disposition report; (ii) clearance rate report; (iii) age of pending cases report;
and (iv) single case progress report?

4. Is a pretrial conference among the case management techniques used before the No 0.0
competent court?

5. Are there any electronic case management tools in place within the competent court Yes 1.0
for use by judges?

6. Are there any electronic case management tools in place within the competent court No 0.0
for use by lawyers?

Court automation (0-4) 0.5

1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent court?

2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?
Page100
 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent
Doing Businesscourt?
2018 Pakistan

2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?

3. Can court fees be paid electronically within the competent court? No 0.0

4. Publication of judgments 0.5

4.a Are judgments rendered in commercial cases at all levels made available to the No
general public through publication in o cial gazettes, in newspapers or on the
internet or court website?

4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes
court level made available to the general public through publication in o cial
gazettes, in newspapers or on the internet or court website?

Alternative dispute resolution (0-3) 2.0

1. Arbitration 1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or Yes

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all its aspects?

1.b. Are there any commercial disputesaside from those that deal with public No
order or public policythat cannot be submitted to arbitration?

1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes

2. Mediation/Conciliation 0.5

2.a. Is voluntary mediation or conciliation available? Yes

2.b. Are mediation, conciliation or both governed by a consolidated law or No

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all their aspects?

2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No
if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?

Enforcing Contracts - Lahore

Standardized Case

Claim value PKR 533,051.00

Court name Lahore District Court

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Time (days) 1025 1101.6 577.8 164.00 (Singapore)

Cost (% of claim value) 25.0 29.6 21.5 9.00 (Iceland)

Quality of judicial processes index (0-18) 5.0 7.0 11.0 15.50 (Australia)
Page101
 if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?
Doing Business 2018 Pakistan

Enforcing Contracts - Lahore

Standardized Case

Claim value PKR 533,051.00

Court name Lahore District Court

City Covered Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Time (days) 1025 1101.6 577.8 164.00 (Singapore)

Cost (% of claim value) 25.0 29.6 21.5 9.00 (Iceland)

Quality of judicial processes index (0-18) 5.0 7.0 11.0 15.50 (Australia)

FigureEnforcingContractsinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

78.23: China (Rank: 5)

41.86: Lahore

40.76: India (Rank: 164)

22.21: Bangladesh (Rank: 189)

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for
enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureEnforcingContractsinLahoreTimeandCost

Time Cost

1600 80
1442 1445
1400 66.8 70
Cost (% of claim value)

1200 1101.6 60
1025
Time (days)

1000 50

800 40
31.0 577.8 29.6
600 496.3 25.0 30
21.5
400 16.2 20

200 10

0 0

Bangladesh China India Lahore OECD high income South Asia

Page102
FigureEnforcingContractsinLahoreandcomparatoreconomiesMeasureofQuality
 0 0

Bangladesh China India Lahore OECD high income South Asia

Doing Business 2018 Pakistan

FigureEnforcingContractsinLahoreandcomparatoreconomiesMeasureofQuality

Lahore 2 0.5 0.5 2

Bangladesh 3 1 0.5 3

China 3 4.5 3 4.5

India 2.3 1.5 2 4.5

OECD high income 2.5 2.9 2 3.6

South Asia 2.3 1.1 0.8 3.2

0 2 4 6 8 10 12 14 16
Sub-Indicator Score

Alternativedisputeresolution(03) Casemanagement(06) Courtautomation(04) Courtstructureandproceedings(15)

DetailsEnforcingContractsinLahore

Indicator

Time (days) 1025

Filing and service 60

Trial and judgment 600

Enforcement of judgment 365

Cost (% of claim value) 25.0

Attorney fees 15

Court fees 7

Enforcement fees 3

Quality of judicial processes index (0-18) 5.0

Court structure and proceedings (-1-5) 2.0

Case management (0-6) 0.5

Court automation (0-4) 0.5

Alternative dispute resolution (0-3) 2.0

DetailsEnforcingContractsinLahoreMeasureofQuality
Page103
 Alternative dispute resolution (0-3) 2.0

Doing Business 2018 Pakistan

DetailsEnforcingContractsinLahoreMeasureofQuality

Answer Score

Quality of judicial processes index (0-18) 5.0

Court structure and proceedings (-1-5) 2.0

1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0

2. Small claims court 1.5

2.a. Is there a small claims court or a fast-track procedure for small claims? Yes

2.b. If yes, is self-representation allowed? Yes

3. Is pretrial attachment available? Yes 1.0

4. Are new cases assigned randomly to judges? Yes, but manual 0.5

5. Does a woman's testimony carry the same evidentiary weight in court as a man's? No -1.0

Case management (0-6) 0.5

1. Time standards 0.5

1.a. Are there laws setting overall time standards for key court events in a civil case? Yes

1.b. If yes, are the time standards set for at least three court events? Yes

1.c. Are these time standards respected in more than 50% of cases? No

2. Adjournments 0.0

2.a. Does the law regulate the maximum number of adjournments that can be No
granted?

2.b. Are adjournments limited to unforeseen and exceptional circumstances? No

2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.

3. Can two of the following four reports be generated about the competent court: (i) No 0.0
time to disposition report; (ii) clearance rate report; (iii) age of pending cases report;
and (iv) single case progress report?

4. Is a pretrial conference among the case management techniques used before the No 0.0
competent court?

5. Are there any electronic case management tools in place within the competent court No 0.0
for use by judges?

6. Are there any electronic case management tools in place within the competent court No 0.0
for use by lawyers?

Court automation (0-4) 0.5

1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent court?

2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?
Page104
 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent
Doing Businesscourt?
2018 Pakistan

2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?

3. Can court fees be paid electronically within the competent court? No 0.0

4. Publication of judgments 0.5

4.a Are judgments rendered in commercial cases at all levels made available to the No
general public through publication in o cial gazettes, in newspapers or on the
internet or court website?

4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes
court level made available to the general public through publication in o cial
gazettes, in newspapers or on the internet or court website?

Alternative dispute resolution (0-3) 2.0

1. Arbitration 1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or Yes

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all its aspects?

1.b. Are there any commercial disputesaside from those that deal with public No
order or public policythat cannot be submitted to arbitration?

1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes

2. Mediation/Conciliation 0.5

2.a. Is voluntary mediation or conciliation available? Yes

2.b. Are mediation, conciliation or both governed by a consolidated law or No

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all their aspects?

2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No
if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?

Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are
used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization,
liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered
by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central
banks and the Economist Intelligence Unit.

The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Time required to recover debt (years) To make the data on the time, cost and outcome comparable across
economies, several assumptions about the business and the case are
Measured in calendar years
used:
Appeals and requests for extension are included
- A hotel located in the largest city (or cities) has 201 employees and 50
Cost required to recover debt (% of debtors estate)
suppliers. The hotel experiences nancial di culties. Page105
Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent
 if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?
Doing Business 2018 Pakistan

Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are
used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization,
liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered
by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central
banks and the Economist Intelligence Unit.

The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Time required to recover debt (years) To make the data on the time, cost and outcome comparable across
economies, several assumptions about the business and the case are
Measured in calendar years
used:
Appeals and requests for extension are included
- A hotel located in the largest city (or cities) has 201 employees and 50
Cost required to recover debt (% of debtors estate)
suppliers. The hotel experiences nancial di culties.
Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent
Court fees in local currency of USD 200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over
Fees of insolvency administrators
the hotels real estate. The hotel cannot pay back the loan, but makes
Lawyers fees
enough money to operate otherwise.
Assessors and auctioneers fees
In addition, Doing Business evaluates the adequacy and integrity of the
Other related fees existing legal framework applicable to liquidation and reorganization
Outcome proceedings through the strength of insolvency framework index. The
index tests whether economies adopted internationally accepted good
Whether business continues operating as a going
practices in four areas: commencement of proceedings, management of
concern or business assets are sold piecemeal
debtors assets, reorganization proceedings and creditor participation.
Recovery rate for creditors

Measures the cents on the dollar recovered by

secured creditors
Outcome for the business (survival or not)
determines the maximum value that can be
recovered
Official costs of the insolvency proceedings are
deducted
Depreciation of furniture is taken into account
Present value of debt recovered

Strength of insolvency framework index (0- 16)

Sum of the scores of four component indices:

Commencement of proceedings index (0-3)
Management of debtors assets index (0-6)
Reorganization proceedings index (0-3)
Creditor participation index (0-4)

Resolving Insolvency - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Recovery rate (cents on the dollar) 43.4 32.7 71.2 93.1 (Norway)
Page106
 Creditor participation index (0-4)

Doing Business 2018 Pakistan

Resolving Insolvency - Karachi

OECD high
Indicator Karachi South Asia income Overall Best Performer

Recovery rate (cents on the dollar) 43.4 32.7 71.2 93.1 (Norway)

Time (years) 2.8 2.6 1.7 0.4 (Ireland)

Cost (% of estate) 4.0 9.9 9.1 1.00 (Norway)

Outcome (0 as piecemeal sale and 1 as going 0 .. .. ..

concern)

Strength of insolvency framework index (0-16) 7.0 4.9 12.1 15.00 (6 Economies)

FigureResolvingInsolvencyinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

55.82: China (Rank: 56)

45.26: Karachi

40.75: India (Rank: 103)

27.71: Bangladesh (Rank: 152)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for
resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of
insolvency framework index.

FigureResolvingInsolvencyinKarachiTimeandCost

Time Cost

4.5 4.3 25
4.0 22.0
4

3.5 20
Cost (% of estate)

3 2.8
Time (years)

2.6
15
2.5
2 1.7 1.7 9.1 9.9
9.0 10
8.0
1.5

1 4.0 5
0.5
0 0

Bangladesh China India Karachi OECD high income South Asia

FigureResolvingInsolvencyinKarachiandcomparatoreconomiesMeasureofQuality

Page107
Karachi 3 2 2 0
 0 0

Bangladesh China India Karachi OECD high income South Asia

Doing Business 2018 Pakistan

FigureResolvingInsolvencyinKarachiandcomparatoreconomiesMeasureofQuality

Karachi 3 2 2 0

Bangladesh 2 2 0

China 5 3 1 2.5

India 4.5 2 1 1

OECD high income 5.4 2.8 2.3 1.9

South Asia 2.6 2 0.9 0.4

0 2 4 6 8 10 12 14
Sub-Indicator Score

Managementofdebtor'sassetsindex(06) Commencementofproceedingsindex(03) Creditorparticipationindex(04)

Reorganizationproceedingsindex(03)

FigureResolvingInsolvencyinKarachiandcomparatoreconomiesRecoveryRate
Recovery Rate (cents on the dollar)

50
43.4
45
40 36.9
35 32.7
28.3
30 26.4
25
20
15
10
5
0

Karachi Bangladesh China India South Asia

DetailsResolvingInsolvencyinKarachi

Indicator Answer Explanation

Proceeding foreclosure 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.

Outcome piecemeal sale 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.

Time (in years) 2.8 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
Page108
official receiver. This period usually takes about 4 months. Then it takes approximate half a
 Karachi Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsResolvingInsolvencyinKarachi

Indicator Answer Explanation

Proceeding foreclosure 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.

Outcome piecemeal sale 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.

Time (in years) 2.8 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.

Cost (% of 4.0 The costs associated with the case would amount to approximately 4% of the value of the
estate) 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%).

Recovery rate (cents on the 43.4

dollar)

DetailsResolvingInsolvencyinKarachiMeasureofQuality

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 (b) Debtor may 0.5
proceedings? le for
liquidation only

Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only

What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature

Management of debtor's assets index (0-6) 3.0

Does the insolvency framework allow the continuation of contracts supplying essential No 0.0
Page109
goods and services to the debtor?
dollar)

Doing Business 2018 Pakistan

DetailsResolvingInsolvencyinKarachiMeasureofQuality

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 (b) Debtor may 0.5
proceedings? le for
liquidation only

Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only

What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature

Management of debtor's assets index (0-6) 3.0

Does the insolvency framework allow the continuation of contracts supplying essential No 0.0
goods and services to the debtor?

Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0
contracts?

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 No 0.0
after commencement of insolvency proceedings?

Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors

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 No 0.0
receive at least as much as what they would obtain in a liquidation?

Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0
plan, does each class vote separately and are creditors in the same class treated
equally?

Creditor participation index (0-4) 2.0

Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment of the insolvency representative?

Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0
assets of the debtor? Page110
 Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment
Doing Businessof the
2018insolvency representative?
Pakistan

Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0
assets of the debtor?

Does the insolvency framework provide that a creditor has the right to request No 0.0
information from the insolvency representative?

Does the insolvency framework provide that a creditor has the right to object to Yes 1.0
decisions accepting or rejecting creditors' claims?

Note: Even if the economys 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.

Resolving Insolvency - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Recovery rate (cents on the dollar) 46.5 32.7 71.2 93.1 (Norway)

Time (years) 2.3 2.6 1.7 0.4 (Ireland)

Cost (% of estate) 4.0 9.9 9.1 1.00 (Norway)

Outcome (0 as piecemeal sale and 1 as going 0 .. .. ..

concern)

Strength of insolvency framework index (0-16) 7.0 4.9 12.1 15.00 (6 Economies)

FigureResolvingInsolvencyinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

55.82: China (Rank: 56)

46.88: Lahore

40.75: India (Rank: 103)

27.71: Bangladesh (Rank: 152)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for
resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of
insolvency framework index.

FigureResolvingInsolvencyinLahoreTimeandCost

Time Cost

4.5 4.3 25
4.0 22.0
4

3.5 Page111
20
te)
the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as
no practice.
Doing Business 2018 Pakistan

Resolving Insolvency - Lahore

OECD high
Indicator Lahore South Asia income Overall Best Performer

Recovery rate (cents on the dollar) 46.5 32.7 71.2 93.1 (Norway)

Time (years) 2.3 2.6 1.7 0.4 (Ireland)

Cost (% of estate) 4.0 9.9 9.1 1.00 (Norway)

Outcome (0 as piecemeal sale and 1 as going 0 .. .. ..

concern)

Strength of insolvency framework index (0-16) 7.0 4.9 12.1 15.00 (6 Economies)

FigureResolvingInsolvencyinPakistanandcomparatoreconomiesRankingandDTF

DB 2018 Distance to Frontier (DTF)

0 100

55.82: China (Rank: 56)

46.88: Lahore

40.75: India (Rank: 103)

27.71: Bangladesh (Rank: 152)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for
resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of
insolvency framework index.

FigureResolvingInsolvencyinLahoreTimeandCost

Time Cost

4.5 4.3 25
4.0 22.0
4

3.5 20
Cost (% of estate)

3
Time (years)

2.6
15
2.5 2.3

2 1.7 1.7 9.1 9.9

9.0 10
8.0
1.5

1 4.0 5
0.5

0 0

Bangladesh China India Lahore OECD high income South Asia

FigureResolvingInsolvencyinLahoreandcomparatoreconomiesMeasureofQuality
Page112
 0 0

Bangladesh China India Lahore OECD high income South Asia

Doing Business 2018 Pakistan

FigureResolvingInsolvencyinLahoreandcomparatoreconomiesMeasureofQuality

Lahore 3 2 2 0

Bangladesh 2 2 0

China 5 3 1 2.5

India 4.5 2 1 1

OECD high income 5.4 2.8 2.3 1.9

South Asia 2.6 2 0.9 0.4

0 2 4 6 8 10 12 14
Sub-Indicator Score

Managementofdebtor'sassetsindex(06) Commencementofproceedingsindex(03) Creditorparticipationindex(04)

Reorganizationproceedingsindex(03)

FigureResolvingInsolvencyinLahoreandcomparatoreconomiesRecoveryRate
Recovery Rate (cents on the dollar)

50 46.5
45
40 36.9
35 32.7
28.3
30 26.4
25
20
15
10
5
0

Lahore Bangladesh China India South Asia

DetailsResolvingInsolvencyinLahore

Indicator Answer Explanation

Proceeding foreclosure 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.

Outcome piecemeal sale 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.

Time (in years) 2.3 Recovery law is a specialized law and provides a restricted time frame of ninety days to
conclude the foreclosure procedure. However, in practice, it may extend to about 28
months. The time consumed in obtaining a judgement before the Banking Court is year and
Page113
some additional months. The time for the successful execution and enforcement of decree
 Lahore Bangladesh China India South Asia

Doing Business 2018 Pakistan

DetailsResolvingInsolvencyinLahore

Indicator Answer Explanation

Proceeding foreclosure 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.

Outcome piecemeal sale 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.

Time (in years) 2.3 Recovery law is a specialized law and provides a restricted time frame of ninety days to
conclude the foreclosure procedure. However, in practice, it may extend to about 28
months. The time consumed in obtaining a judgement before the Banking Court is year and
some additional months. The time for the successful execution and enforcement of decree
also takes approximately an additional a year

Cost (% of 4.0 The costs associated with the case would amount to approximately 4% of the value of the
estate) 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%).

Recovery rate (cents on the 46.5

dollar)

DetailsResolvingInsolvencyinLahoreMeasureofQuality

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 (b) Debtor may 0.5
proceedings? le for
liquidation only

Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only

What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature

Management of debtor's assets index (0-6) 3.0

Does the insolvency framework allow the continuation of contracts supplying essential No 0.0
goods and services to the debtor?

Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0
contracts? Page114
dollar)

Doing Business 2018 Pakistan

DetailsResolvingInsolvencyinLahoreMeasureofQuality

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 (b) Debtor may 0.5
proceedings? le for
liquidation only

Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only

What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature

Management of debtor's assets index (0-6) 3.0

Does the insolvency framework allow the continuation of contracts supplying essential No 0.0
goods and services to the debtor?

Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0
contracts?

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 No 0.0
after commencement of insolvency proceedings?

Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors

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 No 0.0
receive at least as much as what they would obtain in a liquidation?

Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0
plan, does each class vote separately and are creditors in the same class treated
equally?

Creditor participation index (0-4) 2.0

Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment of the insolvency representative?

Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0
assets of the debtor? Page115
 Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment
Doing Businessof the
2018insolvency representative?
Pakistan

Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0
assets of the debtor?

Does the insolvency framework provide that a creditor has the right to request No 0.0
information from the insolvency representative?

Does the insolvency framework provide that a creditor has the right to object to Yes 1.0
decisions accepting or rejecting creditors' claims?

Note: Even if the economys 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.

Labor Market Regulation

Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of
economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business. Detailed data collected on labor market regulation are available on the Doing Business website
(http://www.doingbusiness.org/data/exploretopics/labor-market-regulation).

The most recent round of data collection was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Hiring To make the data comparable across economies, several assumptions

(i) whether xed-term contracts are prohibited for about the worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of xed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of
work experience.
Working hours
- Is a full-time employee.
(i) maximum number of working days allowed per
- Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economys largest
and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second
as men; (v) length of paid annual leave. largest business city.
- Has 60 employees.
Redundancy rules
- Is subject to collective bargaining agreements if such agreements cover
(i) whether redundancy can be basis for terminating
more than 50% of the food retail sector and they apply even to rms that
workers; (ii) whether employer needs to notify
are not party to them.
and/or get approval from third party to terminate 1
- Abides by every law and regulation but does not grant workers more
redundant worker and a group of 9 redundant
bene ts than those mandated by law, regulation or (if applicable) collective
workers; (iii) whether law requires employer to
bargaining agreements.
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.

Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.

Job quality
(i) whether law mandates equal remuneration for
work of equal value and nondiscrimination based on
gender in hiring; (ii) whether law mandates paid or
unpaid maternity leave; (iii) length of paid maternity Page116
leave; (iv) whether employees on maternity leave
the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as
no practice.
Doing Business 2018 Pakistan

Labor Market Regulation

Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of
economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business. Detailed data collected on labor market regulation are available on the Doing Business website
(http://www.doingbusiness.org/data/exploretopics/labor-market-regulation).

The most recent round of data collection was completed in June 2017. See the methodology for more information.

What the indicators measure Case study assumptions

Hiring To make the data comparable across economies, several assumptions

(i) whether xed-term contracts are prohibited for about the worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of xed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of
work experience.
Working hours
- Is a full-time employee.
(i) maximum number of working days allowed per
- Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economys largest
and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second
as men; (v) length of paid annual leave. largest business city.
- Has 60 employees.
Redundancy rules
- Is subject to collective bargaining agreements if such agreements cover
(i) whether redundancy can be basis for terminating
more than 50% of the food retail sector and they apply even to rms that
workers; (ii) whether employer needs to notify
are not party to them.
and/or get approval from third party to terminate 1
- Abides by every law and regulation but does not grant workers more
redundant worker and a group of 9 redundant
bene ts than those mandated by law, regulation or (if applicable) collective
workers; (iii) whether law requires employer to
bargaining agreements.
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.

Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.

Job quality
(i) whether law mandates equal remuneration for
work of equal value and nondiscrimination based on
gender in hiring; (ii) whether law mandates paid or
unpaid maternity leave; (iii) length of paid maternity
leave; (iv) whether employees on maternity leave
receive 100% of wages; (v) availability of ve fully paid
days of sick leave a year; (vi) eligibility requirements
for unemployment protection.

Labor Market Regulation - Karachi

DetailsLaborMarketRegulationinKarachi

Answer
Page117
days of sick leave a year; (vi) eligibility requirements
for unemployment protection.
Doing Business 2018 Pakistan

Labor Market Regulation - Karachi

DetailsLaborMarketRegulationinKarachi

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? Yes

Maximum length of a single xed-term contract (months) 9.0

Maximum length of xed-term contracts, including renewals (months) 9.0

Minimum wage applicable to the worker assumed in the case study (US$/month) 129.8

Ratio of minimum wage to value added per worker 0.6

Maximum length of probationary period (months) 3.0

Working hours

Standard workday 9.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 0.0

Premium for work on weekly rest day (% of hourly pay) 100.0

Premium for overtime work (% of hourly pay) 100.0

Restrictions on night work? Yes

Whether nonpregnant and nonnursing women can work the same night hours as men No

Restrictions on weekly holiday? Yes

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 14.0

Paid annual leave for a worker with 5 years of tenure (working days) 14.0

Paid annual leave for a worker with 10 years of tenure (working days) 14.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 14.0

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party noti cation if one worker is dismissed? No

Third-party approval if one worker is dismissed? No

Third-party noti cation if nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No Page118

 Third-party
Doing noti 2018
Business cation if Pakistan
nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? No

Priority rules for redundancies? Yes

Priority rules for reemployment? Yes

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3

Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3

Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3

Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.3

Severance pay for redundancy dismissal for a worker with 5 years of tenure 21.4

Severance pay for redundancy dismissal for a worker with 10 years of tenure 42.9

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 22.9

Job quality

Equal remuneration for work of equal value? No

Gender nondiscrimination in hiring? No

Paid or unpaid maternity leave mandated by law? Yes

Minimum length of maternity leave (calendar days)? 84.0

Receive 100% of wages on maternity leave? Yes

Five fully paid days of sick leave a year? Yes

Unemployment protection after one year of employment? No

Minimum contribution period for unemployment protection (months)? n.a.

Labor Market Regulation - Lahore

DetailsLaborMarketRegulationinLahore

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? Yes

Maximum length of a single xed-term contract (months) 9.0

Maximum length of xed-term contracts, including renewals (months) 9.0

Page119
Minimum wage applicable to the worker assumed in the case study (US$/month) 129.8
 Minimum contribution period for unemployment protection (months)? n.a.
Doing Business 2018 Pakistan

Labor Market Regulation - Lahore

DetailsLaborMarketRegulationinLahore

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? Yes

Maximum length of a single xed-term contract (months) 9.0

Maximum length of xed-term contracts, including renewals (months) 9.0

Minimum wage applicable to the worker assumed in the case study (US$/month) 129.8

Ratio of minimum wage to value added per worker 0.6

Maximum length of probationary period (months) 3.0

Working hours

Standard workday 9.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 0.0

Premium for work on weekly rest day (% of hourly pay) 100.0

Premium for overtime work (% of hourly pay) 100.0

Restrictions on night work? Yes

Whether nonpregnant and nonnursing women can work the same night hours as men No

Restrictions on weekly holiday? Yes

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 14.0

Paid annual leave for a worker with 5 years of tenure (working days) 14.0

Paid annual leave for a worker with 10 years of tenure (working days) 14.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 14.0

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party noti cation if one worker is dismissed? No

Third-party approval if one worker is dismissed? No

Third-party noti cation if nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No Page120

 Third-party
Doing noti 2018
Business cation if Pakistan
nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? No

Priority rules for redundancies? Yes

Priority rules for reemployment? Yes

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3

Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3

Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3

Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.3

Severance pay for redundancy dismissal for a worker with 5 years of tenure 21.4

Severance pay for redundancy dismissal for a worker with 10 years of tenure 42.9

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 22.9

Job quality

Equal remuneration for work of equal value? No

Gender nondiscrimination in hiring? No

Paid or unpaid maternity leave mandated by law? Yes

Minimum length of maternity leave (calendar days)? 84.0

Receive 100% of wages on maternity leave? Yes

Five fully paid days of sick leave a year? Yes

Unemployment protection after one year of employment? No

Minimum contribution period for unemployment protection (months)? n.a.

Business Reforms in Pakistan

In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing
Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms
inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Pakistan
implemented since Doing Business 2008.

= Doing Business reform making it easier to do business. = Change making it more di cult to do business.

DB2018
Starting a Business: Pakistan made starting a business easier by replacing the need to obtain a digital signature for company
incorporation with a less costly personal identi cation number. This change applies to both Karachi and Lahore.

Registering Property: Pakistan, Karachi improved the transparency of the land registration process by publishing online the fee
schedule and the list of documents necessary to complete any property registration.
Page121
Protecting Minority Investors: Pakistan increased minority investor protections by making it easier to sue directors in case of
 Minimum contribution period for unemployment protection (months)? n.a.
Doing Business 2018 Pakistan

Business Reforms in Pakistan

In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing
Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms
inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Pakistan
implemented since Doing Business 2008.

= Doing Business reform making it easier to do business. = Change making it more di cult to do business.

DB2018
Starting a Business: Pakistan made starting a business easier by replacing the need to obtain a digital signature for company
incorporation with a less costly personal identi cation number. This change applies to both Karachi and Lahore.

Registering Property: Pakistan, Karachi improved the transparency of the land registration process by publishing online the fee
schedule and the list of documents necessary to complete any property registration.

Protecting Minority Investors: Pakistan increased minority investor protections by making it easier to sue directors in case of
prejudicial transactions with interested parties. This reform applies to both Karachi and Lahore.

Trading across Borders: Pakistan made importing and exporting easier by developing a new container terminal and enhancing
its customs platform for electronic document submission. These changes apply to both Karachi and Lahore.

DB2017
Registering Property: Pakistan improved the quality of land administration by digitizing ownership and land records. This reform
applies to Lahore.

Getting Credit: Pakistan improved access to credit information guaranteeing by law borrowers rights to inspect their own data.
The credit bureau also expanded its borrower coverage. This reform applies to both Lahore and Karachi.

Trading across Borders: Pakistan made exporting and importing easier by enhancing its electronic "Web Based One Customs
Platform".

DB2015
Trading across Borders: Pakistan made trading across borders easier by introducing a fully automated, computerized system
(the Web-Based One Customs system) for the submission and processing of export and import documents. This reform applies to
both Lahore and Karachi.

DB2012
Paying Taxes: Pakistan increased the pro t tax rate for small rms.

DB2011
Registering Property: Pakistan made property transfer more a ordable by reducing the stamp duty rate.

Trading across Borders: Pakistan reduced the time to export by improving electronic communication between the Karachi Port
authorities and the private terminals, which have also boosted e ciency by introducing new equipment.

DB2010
Starting a Business: Pakistan made starting a business easier by introducing an electronic registration system, allowing online
registration for sales tax and eliminating the requirement to make the declaration of compliance on a stamped paper.

DB2008
Registering Property: Pakistan made registering property more expensive by increasing the capital value tax.

Getting Credit: Pakistans private credit bureau began distributing positive as well as negative credit information, and its public
credit registry eliminated the minimum threshold for loans included in its database.

Page122
 Getting Credit: Pakistans private credit bureau began distributing positive as well as negative credit information, and its public
credit
Doing registry eliminated
Business 2018the Pakistan
minimum threshold for loans included in its database.

Page123