steps taken by government of Pakistan for ease of doing business
Starting a new business is often considered to be a complex process. There are several regulations and procedures that need to be followed which can be intimidating, especially for small businesses. However, the Government of Pakistan has been taking innovative steps in order to facilitate and encourage entrepreneurship by simplifying procedures and introducing various initiatives. In this blog post, we will explore these efforts taken by the Pakistani government geared towards ease of doing business and their impact on local businesses.
Overview of the Government of Pakistan’s efforts to improve ease of doing business
Pakistan has been working diligently to improve its economy and attract foreign investors. One way that the government is doing this is by making it easier to do business in the country. In recent years, Pakistan has implemented various reforms that have streamlined administrative processes and increased transparency for businesses. These efforts have not gone unnoticed, as Pakistan has risen significantly in the World Bank’s Ease of Doing Business Index. The government’s initiatives include digitalizing procedures, simplifying regulations, and establishing a one-stop-shop for business registration, and introducing Pakistan single windows (PSW) for simplifying cross-border trade These changes have not only made it easier for local entrepreneurs to start and run their businesses but also for foreign investors to enter the market. Pakistan’s commitment to improving business conditions highlights its desire to grow and prosper on a global level. Despite of the steps taken by the Government of Pakistan for ease of doing business, still there are many things that need to be done to achieve the desired results.Some of the important factors in this regard are elaborated below.
Elimination of unnecessary regulatory compliance requirements
Regulatory compliance can often feel like an endless maze of rules and regulations that businesses must navigate through in order to avoid legal penalties. But what if some of these requirements were removed? For example, Although Pakistan has a centralized income tax system and the Federal Board of Revenue (FBR) is the regulator for income tax matters. But sales tax on services is decentralized and a business has to register with four different provincial revenue authorities for complying with sales tax on services laws and every authority has a different sales tax on service laws. The elimination of such unnecessary regulatory compliance requirements could result in a more streamlined and efficient process for businesses, ultimately saving time and money. This would allow companies to focus more on productivity and growth rather than constantly worrying about compliance. It is essential, however, to ensure that the necessary regulations remain intact in order to guarantee the safety of employees and the general public. Nevertheless, by cutting back on unnecessary requirements, the business world could see a much-needed boost in innovation and progress.
Streamlining of administrative procedures to reduce paperwork and processing time
In today’s fast-paced world, time is of the essence. Streamlining administrative procedures can save us precious time and resources. By focusing on reducing paperwork and processing time, organizations can allocate resources to other important areas that drive growth and productivity. Imagine the convenience of having fewer forms to fill out, faster processing times, and more efficient communication channels. Not only does this make life easier for those managing administrative tasks, it also fosters a positive work environment that inspires productivity and collaboration. A streamlined administrative process can certainly make a world of difference.
Development of a digital platform that allows businesses to access all necessary approvals online
In today’s fast-paced digital age, businesses increasingly need faster and more efficient solutions for meeting their administrative needs. That’s where the development of a new digital platform comes in. This platform promises to streamline the process of accessing all necessary approvals online, saving businesses time and money. With just a few clicks, companies will be able to access everything they need through the platform, making it easier than ever to manage their operations.
Although many departments of the Government of Pakistan have digitalized their registration and compliance processes like SECP has fully digitalized the Company incorporation process and FBR and provincial revenue authorities have digitized the registration and filling for income and sales taxes. Further PSW is a fully automated system for import and export. But still, there is a need for a comprehensive digital platform that ensures all the business-related registrations and compliances at a single surface.
That platform is set to revolutionize the way that businesses operate, ensuring that they can stay agile and responsive to the ever-changing regulatory landscape. This is a game-changing innovation that is sure to propel businesses forward in the years to come.
Incentives for foreign investments and tax breaks for small businesses
In today’s global economy, countries are constantly competing for foreign investments to drive their economic growth. Providing incentives for foreign investors is a common strategy that many governments use to attract these investments. From tax breaks to expedited processes for permits and licenses, a wide range of incentives can be offered to foreign investors. On the other hand, small businesses often struggle to keep up with larger corporations due to factors such as lack of finances and resources. This is why tax breaks for small businesses can be a game-changer. These incentives can provide much-needed relief to small business owners, allowing them to grow and succeed in today’s competitive market. By offering both incentives for foreign investments and tax breaks for small businesses, governments can create an environment that fosters economic growth and development for all.
Supportive policies for women entrepreneurs and SMEs
Women entrepreneurs and small and medium-sized enterprises (SMEs) play a crucial role in boosting economic growth and creating employment opportunities. However, they are often disadvantaged compared to their male counterparts due to various barriers. That’s why implementing supportive policies for women entrepreneurs and SMEs is essential. These policies can include access to finance, training and mentorship programs, government contracts, and supportive regulatory frameworks.Women entrepreneurs and SMEs are necessary for creating a diverse and vibrant entrepreneurial ecosystem. Small and Medium Enterprise Development Authority (SMEDA) is an institute of the government of Pakistan to encourage and facilitate the development and growth of small and medium enterprises in the country by providing both financial and technical support to the small and medium businesses
The government of Pakistan is clearly committed to improving ease of doing business in the country and, in their pursuit of this goal, have implemented a number of different initiatives that are designed to simplify processes, reduce paperwork and create a more welcoming environment for foreign investments. By removing unnecessary regulatory compliance requirements, streamlining administrative procedures and providing special incentives for women entrepreneurs and SMEs, they are paving the way for business growth and sustainability. Furthermore, by hosting all relevant approvals online on a digital platform, it will be easier for companies to access the information they need quickly and conveniently. It is hoped that these changes will bring about long-term positive effects for investors and businesses in Pakistan alike.
Usman Rasheed & Co Chartered Accountants is a leading financial advisory and audit firm in Pakistan, having offices in Islamabad, Quetta, Lahore, Karachi, Peshawar & Gilgit. The firm is providing Audit, Tax, Corporate, Financial, Business, Legal & Secretarial Advisory services and other related assistance to local and foreign private, public and other organizations working in Pakistan