In a landmark achievement for the nation's economic landscape, Pakistan has made a historic leap forward in global business rankings. The country's comprehensive push for regulatory reform has been officially recognized with a dramatic improvement in its standing.
A Historic Leap in Global Rankings
The most tangible evidence of this progress is Pakistan's remarkable ascent in the World Bank's influential Doing Business 2020 report. The nation's ranking surged by an impressive 47 places, moving from 136th to 108th position among 190 economies evaluated worldwide. This represents one of the most significant single-year improvements recorded by any country, signaling a powerful shift in the operational environment for both local entrepreneurs and foreign investors.
The Pillars of Reform: Key Areas of Improvement
This dramatic climb was not accidental but the result of targeted, coordinated efforts across several critical fronts. The government, in collaboration with provincial authorities, implemented a series of concrete measures designed to slash red tape and simplify processes.
Starting a business became significantly easier, with the time and cost associated with launching a new enterprise substantially reduced. Reforms in dealing with construction permits streamlined approval processes, making it faster to get projects off the ground. Perhaps most notably, major strides were made in facilitating trade across borders.
Customs procedures at ports, particularly in Karachi, were modernized and digitized. This led to a drastic cut in the time required for importing and exporting goods. For instance, the border compliance time for exports was reduced by a massive 71 hours, while import compliance time fell by 48 hours. Such changes directly lower costs for businesses and enhance Pakistan's competitiveness in international markets.
Foundations and Future Implications
The reform agenda was spearheaded by a high-level body known as the Regulatory Reform Steering Committee (RRSC). Chaired by the Advisor to the Prime Minister on Commerce, Textile, Industry and Production, and Investment, Abdul Razak Dawood, this committee provided the strategic direction. The operational work was driven by the Regulatory Reform Unit (RRU) within the Ministry of Commerce, which coordinated with over 40 different government departments and agencies to implement changes.
The positive repercussions of this improved ranking are multifaceted. A better score on the Doing Business index acts as a powerful signal to the international investment community, enhancing Pakistan's credibility and attractiveness as a destination for capital. It reduces the perceived risk and cost of operating in the country, potentially leading to increased Foreign Direct Investment (FDI). Domestically, it empowers small and medium-sized enterprises (SMEs) by lowering the bureaucratic hurdles they face daily, fostering innovation and job creation.
While celebrating this achievement, officials and analysts alike view it as a foundational step rather than an end goal. The challenge now is to maintain the reform momentum, ensure the consistent implementation of new procedures across all provinces, and tackle remaining complex areas such as contract enforcement and property registration. Sustained improvement in these rankings is crucial for building long-term economic resilience and unlocking Pakistan's full entrepreneurial potential.
