Government should provide business-friendly environment by making regulations simpler which would ultimately encourage more businesses to register and become part of the formal economy.

Pakistan was ranked as a leading reformer by the World Bank in preceding years, having implemented several reforms that improved the government’s efficiency and made life easier for businesses. The Government has now slowed its pace of reforms, which was negatively affecting businesses. Government should move towards more business friendly environment by practicing good governance, Mahfooz Elahi, President, Islamabad Chamber of Commerce & Industry (ICCI) has said in a statement.

While referring to the report published by the International Finance Corporation, he observed that Pakistan lost eight points in a world ranking and dropped from 75th position in 2010 to 83rd in 2011 in Ease of Doing Business. However, Pakistan was still ahead of some South Asian countries including India, Bangladesh, Bhutan and Sri Lanka. Government should improve business environment through consistent policies and single-minded focus on economic development, he emphasized.

He said that despite tax reforms during the last decade, `Ease of Paying Taxes’ situation in Pakistan has worsened and the country’s ranking has fallen from 139 in 2010 to 145 in 2011, while the Ease in Trading across borders, the ranking of Pakistan has dropped by three points to 81 in 2011.

ICCI President was of the view that businesses were required to pay innumerable federal, provincial and local taxes under a complex taxation system. Government should evolve an equitable and simplest taxation policy, which would ultimately increase the confidence of businessmen, he opinioned.