Opening a business? Pindi may not be the best choice

World Bank report ranks city 10th of 13 cities nationwide for start-up businesses.

RAWALPINDI:

Things may have changed ever since, but according to a two-year report the most populous city in northern Pakistan is also among the least ideal cities to set up a business and run it. A World Bank report prepared in 2010 ranked Rawalpindi 10th out of 13 Pakistani cities in terms of ease of establishing and running a business.

In preparing recommendations for facilitating businesses in different cities, the WB cited 13 indicators ranging from tax collection to obtaining permits. Although 10th overall, Rawalpindi was ranked 5th with regards to obtaining construction permits.

A four-member WB team met with the District Coordination Officer (DCO) on Wednesday. Members of Rawalpindi Chamber of Commerce and Industry (RCCI) along with district government officials and Rawalpindi Development Authority (RDA) representatives were also present at the occasion.

RCCI Vice President Raja Aamir Iqbal suggested the process of obtaining construction permits should be given to different departments to minimise the risk of bribery.

The three-step process for construction permits first requires obtaining a building map. Then the concerned department inspects the construction work, and finally a no objection certificate is issued. At present, all three steps are in the domain of the RDA, leaving no room for interdepartmental oversight.

They also hoped the process of obtaining land ownership documents from revenue officers would be made easier. An RCCI representative suggested to combat bribery, revenue officers should be given a share of fees collected in a formula similar to that employed by the Motorway police.

“Computerisation of all land records would further ease starting up business activities,” Aamir Iqbal said.

DCO Saqib Zaffar told The Express Tribune that the WB report was compiled two years ago and things had changed since then.

The WB ranked Rawalpindi 10th using indicators that mostly fall in the domain of either the federal (income tax) or the Punjab government (provision of different utilities), the DCO added.

He said the meeting was to get feedback from stakeholders and the concerned departments of district government.

The DCO also said computerisation would be completed this year and further steps would be taken to minimise difficulties in acquiring construction materials.

The district government’s top bureaucrat opined that there should be a liaison officer at district level to facilitate business request processing.

Published In The Express Tribune, June 14^th, 2012.