Region Pro le of South Asia (SA) Doing Business 2018 Indicators Doing Business 2018 SOUTH ASIA (SA) Region Pro le of South Asia (SA) 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 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 year’s 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 Page 2   second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework Doing Business 2018 SOUTH ASIA (SA) for insolvency 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 year’s 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. More about Doing Business (PDF, 5MB) The Business Environment For policy makers, knowing where their economy stands in the aggregate ranking on the ease of doing business is useful. Also useful is to know how it ranks compared with other economies in the region and compared with the regional average. Another perspective is provided by the regional average rankings on the topics included in the ease of doing business ranking and the distance to frontier scores. How economies in South Asia (SA) rank on the ease of doing business Bhutan (Rank 75) 66.27 India (Rank 100) 60.76 Nepal (Rank 105) 59.95 Page 3   world. More Doingabout 2018 (PDF, Doing Business Business 5MB) SOUTH ASIA (SA) The Business Environment For policy makers, knowing where their economy stands in the aggregate ranking on the ease of doing business is useful. Also useful is to know how it ranks compared with other economies in the region and compared with the regional average. Another perspective is provided by the regional average rankings on the topics included in the ease of doing business ranking and the distance to frontier scores. How economies in South Asia (SA) rank on the ease of doing business Bhutan (Rank 75) 66.27 India (Rank 100) 60.76 Nepal (Rank 105) 59.95 Sri Lanka (Rank 111) 58.86 Maldives (Rank 136) 54.42 Pakistan (Rank 147) 51.65 Bangladesh (Rank 177) 40.99 Afghanistan (Rank 183) 36.19 Regional Average (Rank 129) 53.64 0 20 40 60 80 100 Distance to frontier score Note: Economies are ranked on their ease of doing business, from 1–190. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2017. 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 economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. Source: Doing Business database Page 4   Rankings on Doing Business topics - South Asia (SA) lowest performance and 100 represents the frontier. Doing Source: Business Doing 2018 Business SOUTH database ASIA (SA) Rankings on Doing Business topics - South Asia (SA) Starting a Business (110) Resolving Insolvency (121) 0 Dealing with Construction Permits (126) 38 76 114 Enforcing Contracts (142) Getting Electricity (121) 152 190 Trading across Borders (126) Registering Property (146) Paying Taxes (132) Getting Credit (103) Protecting Minority Investors (81) Regional average ranking (Scale: Rank 190 center, Rank 1 outer edge) Source: Doing Business database. Distance to frontier scores on Doing Business topics - South Asia (SA) Starting a Business (83.27) Resolving Insolvency (33.04) 100 Dealing with Construction Permits (56.21) 80 60 40 Enforcing Contracts (43.48) Getting Electricity (56.52) 20 0 Trading across Borders (58.32) Registering Property (45.97) Paying Taxes (59.55) Getting Credit (46.25) Protecting Minority Investors (53.75) (Scale: Score 0 center, Score 100 outer edge) Note: Economies are ranked on their ease of doing business, from 1–190. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2017. 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 economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. Source: Doing Business database 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 economy’s largest business city. Page 5   lowest performance and 100 represents the frontier. Doing Source: Business Doing 2018 Business SOUTH database ASIA (SA) Rankings on Doing Business topics - South Asia (SA) Starting a Business (110) Resolving Insolvency (121) 0 Dealing with Construction Permits (126) 38 76 114 Enforcing Contracts (142) Getting Electricity (121) 152 190 Trading across Borders (126) Registering Property (146) Paying Taxes (132) Getting Credit (103) Protecting Minority Investors (81) Regional average ranking (Scale: Rank 190 center, Rank 1 outer edge) Source: Doing Business database. Distance to frontier scores on Doing Business topics - South Asia (SA) Starting a Business (83.27) Resolving Insolvency (33.04) 100 Dealing with Construction Permits (56.21) 80 60 40 Enforcing Contracts (43.48) Getting Electricity (56.52) 20 0 Trading across Borders (58.32) Registering Property (45.97) Paying Taxes (59.55) Getting Credit (46.25) Protecting Minority Investors (53.75) (Scale: Score 0 center, Score 100 outer edge) Note: Economies are ranked on their ease of doing business, from 1–190. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2017. 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 economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. Source: Doing Business database 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 economy’s largest business city. Page 6   best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. Source: Doing Business 2018 SOUTH ASIA (SA) Doing database Business 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 economy’s 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 Pre-registration (for example, name verification or pay no bribes. reservation, notarization) Registration in economy’s largest business city The business: Post-registration (for example, social security - Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the most registration, company seal) common among domestic rms is chosen. Information on the most Obtaining approval from spouse to start business common form is obtained from incorporation lawyers or the statistical or leave home to register company o ce. Obtaining any gender-specific permission that can - Operates in the economy’s largest business city and the entire o ce impact company registration, company operations space is approximately 929 square meters (10,000 square feet). For 11 and process of getting national identity card economies the data are also collected for the second largest business Time required to complete each procedure city. (calendar days) - Is 100% domestically owned and has ve owners, none of whom is a Does not include time spent gathering information legal entity; and has a start-up capital of 10 times income per capita and Each procedure starts on a separate day (2 has a turnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as the procedures cannot start on the same day) production or sale of goods or services to the public. The business does Procedures fully completed online are recorded as not perform foreign trade activities and does not handle products ½ day subject to a special tax regime, for example, liquor or tobacco. It does not Procedure is considered completed once final use heavily polluting production processes. document is received - Leases the commercial plant or o ces and is not a proprietor of real No prior contact with officials estate and the amount of the annual lease for the o ce space is Cost required to complete each procedure (% equivalent to 1 times income per capita. of income per capita) - Does not qualify for investment incentives or any special bene ts. Official costs only, no bribes - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No professional fees unless services required by - Has a company deed 10 pages long. law or commonly used in practice Paid-in minimum capital (% of income per The owners: capita) - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. Funds deposited in a bank or with third party - Are sane, competent, in good health and have no criminal record. before registration or up to 3 months after - Are married and the marriage is monogamous and registered with the incorporation authorities. - Where the answer di ers according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population. Starting a Business Page 7   there is legal plurality), the answer used will be the one that applies to Doing Business 2018 SOUTH ASIA (SA) the majority of the population. Starting a Business Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in South Asia (SA) to start a business? The global rankings of these economies on the ease of starting a business suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of starting a business Maldives (Rank 68) 89.06 Sri Lanka (Rank 77) 87.74 Bhutan (Rank 88) 86.33 Afghanistan (Rank 107) 84.28 Nepal (Rank 109) 84.04 Bangladesh (Rank 131) 80.67 Pakistan (Rank 142) 78.61 India (Rank 156) 75.40 Regional Average (Rank 110) 83.27 65 70 75 80 85 90 95 100 105 110 Distance to frontier score Source: Doing Business database. Starting a Business The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to start a business in each economy in the region: the number of procedures, the time, the cost and the paid-in minimum capital requirement. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 8   65 70 75 80 85 90 95 100 105 110 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Starting a Business The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to start a business in each economy in the region: the number of procedures, the time, the cost and the paid-in minimum capital requirement. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to start a business in economies in South Asia (SA) Procedure – Men (number) Latin America and Caribbean (LAC) 8.4 Regional Average 7.9 Middle East and North Africa (MENA) 7.7 East Asia and the Pacific (EAP) 7.0 Europe and Central Asia (ECA) 5.2 OECD High Income 4.9 Pakistan 12.0 India 11.5 Bangladesh 9.0 Bhutan 8.0 Nepal 7.0 Sri Lanka 7.0 Maldives 6.0 Afghanistan 3.0 0 2 4 6 8 10 12 14 Source: Doing Business database. Starting a Business Page 9   Time – Men (days) 0 2 4 6 8 10 12 14 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Starting a Business Time – Men (days) Latin America and Caribbean (LAC) 31.7 East Asia and the Pacific (EAP) 22.7 Middle East and North Africa (MENA) 18.6 Regional Average 15.4 Europe and Central Asia (ECA) 10.1 OECD High Income 8.5 India 29.8 Bangladesh 19.5 Pakistan 17.5 Nepal 16.5 Bhutan 12.0 Maldives 12.0 Sri Lanka 9.0 Afghanistan 7.0 0 5 10 15 20 25 30 35 Source: Doing Business database. Starting a Business Cost – Men (% of income per capita) Latin America and Caribbean (LAC) 37.5 Regional Average 21.4 Page 10   0 5 10 15 20 25 30 35 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Starting a Business Cost – Men (% of income per capita) Latin America and Caribbean (LAC) 37.5 Regional Average 21.4 Middle East and North Africa (MENA) 18.7 East Asia and the Pacific (EAP) 18.4 Europe and Central Asia (ECA) 4.4 OECD High Income 3.1 Afghanistan 82.3 Nepal 24.9 Bangladesh 22.3 India 14.8 Sri Lanka 10.4 Pakistan 7.6 Maldives 4.7 Bhutan 3.9 0 10 20 30 40 50 60 70 80 90 Source: Doing Business database. Starting a Business Paid-in min. capital (% of income per capita) East Asia and the Pacific (EAP) 15.1 Middle East and North Africa (MENA) 9.9 Page 11   0 10 20 30 40 50 60 70 80 90 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Starting a Business Paid-in min. capital (% of income per capita) East Asia and the Pacific (EAP) 15.1 Middle East and North Africa (MENA) 9.9 OECD High Income 8.7 Europe and Central Asia (ECA) 3.4 Latin America and Caribbean (LAC) 2.1 Regional Average 0.2 Maldives 1.7 Afghanistan 0.0 Bangladesh 0.0 Bhutan 0.0 India 0.0 Nepal 0.0 Pakistan 0.0 Sri Lanka 0.0 0 2 4 6 8 10 12 14 16 Source: Doing Business database. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including 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 Page 12   What the indicators measure Case study assumptions 0 2 4 6 8 10 12 14 16 Doing Business 2018 Source: Doing Business database. SOUTH ASIA (SA) Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including 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 To make the data comparable across economies, several assumptions (number) about the construction company, the warehouse project and the utility connections are used. Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and The construction company (BuildCo): certificates - Is a limited liability company (or its legal equivalent) and operates in the Submitting all required notifications and receiving economy’s largest business city. For 11 economies the data are also collected for the second largest business city. all necessary inspections - Is 100% domestically and privately owned; has ve owners, none of Obtaining utility connections for water and whom is a legal entity. Has a licensed architect and a licensed engineer, sewerage both registered with the local association of architects or engineers. Registering and selling the warehouse after its BuildCo is not assumed to have any other employees who are technical completion or licensed experts, such as geological or topographical experts. Time required to complete each procedure - Owns the land on which the warehouse will be built and will sell the (calendar days) warehouse upon its completion. Does not include time spent gathering information Each procedure starts on a separate day—though The warehouse: procedures that can be fully completed online are - Will be used for general storage activities, such as storage of books or stationery. an exception to this rule - Will have two stories, both above ground, with a total constructed area Procedure is considered completed once final of approximately 1,300.6 square meters (14,000 square feet). Each oor document is received will be 3 meters (9 feet, 10 inches) high and will be located on a land plot No prior contact with officials of approximately 929 square meters (10,000 square feet) that is 100% Cost required to complete each procedure (% owned by BuildCo, and the warehouse is valued at 50 times income per of warehouse value) capita. Official costs only, no bribes - Will have complete architectural and technical plans prepared by a Building quality control index (0-15) licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external Sum of the scores of six component indices: agencies, these are counted as procedures. Quality of building regulations (0-2) - Will take 30 weeks to construct (excluding all delays due to Quality control before construction (0-1) administrative and regulatory requirements). Quality control during construction (0-3) The water and sewerage connections: Quality control after construction (0-3) - Will be 150 meters (492 feet) from the existing water source and sewer Liability and insurance regimes (0-2) tap. If there is no water delivery infrastructure in the economy, a Professional certifications (0-4) borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and an 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 Where do the region’s economies stand today? Page 13   How easy it is for entrepreneurs in economies in South Asia (SA) to legally build a warehouse? The global rankings of these throughout the year; will be 1 inch in diameter for the water connection Doing Business 2018 SOUTH ASIA (SA) and 4 inches in diameter for the sewerage connection. Dealing with Construction Permits Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in South Asia (SA) to legally build a warehouse? The global rankings of these economies on the ease of dealing with construction permits suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of dealing with construction permits Maldives (Rank 54) 72.87 Sri Lanka (Rank 76) 69.33 Bhutan (Rank 82) 68.69 Bangladesh (Rank 130) 61.97 Pakistan (Rank 141) 59.72 Nepal (Rank 157) 55.74 India (Rank 181) 38.80 Afghanistan (Rank 185) 22.54 Regional Average (Rank 126) 56.21 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Dealing with Construction Permits The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with formalities to build a warehouse in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 14   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Dealing with Construction Permits The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with formalities to build a warehouse in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to comply with formalities to build a warehouse in economies in South Asia (SA) Time (days) Regional Average 193.9 Latin America and Caribbean (LAC) 191.8 Europe and Central Asia (ECA) 168.3 OECD High Income 154.6 East Asia and the Pacific (EAP) 138.2 Middle East and North Africa (MENA) 132.1 Afghanistan 354.0 Bangladesh 269.0 Pakistan 262.1 Bhutan 150.0 India 143.9 Maldives 140.0 Nepal 117.0 Sri Lanka 115.0 0 50 100 150 200 250 300 350 400 Source: Doing Business database. Dealing with Construction Permits Page 15   Cost (% of warehouse value) 0 50 100 150 200 250 300 350 400 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Dealing with Construction Permits Cost (% of warehouse value) Regional Average 17.6 Middle East and North Africa (MENA) 4.3 Europe and Central Asia (ECA) 4.0 Latin America and Caribbean (LAC) 3.2 East Asia and the Pacific (EAP) 2.2 OECD High Income 1.6 Afghanistan 89.8 India 23.2 Nepal 16.6 Pakistan 6.6 Bangladesh 2.4 Bhutan 1.1 Maldives 0.5 Sri Lanka 0.3 0 20 40 60 80 100 Source: Doing Business database. Dealing with Construction Permits Building quality control index (0-15) Middle East and North Africa (MENA) 11.8 OECD High Income 11.4 Page 16   0 20 40 60 80 100 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Dealing with Construction Permits Building quality control index (0-15) Middle East and North Africa (MENA) 11.8 OECD High Income 11.4 Europe and Central Asia (ECA) 11.3 East Asia and the Pacific (EAP) 8.9 Latin America and Caribbean (LAC) 8.8 Regional Average 8.7 Bhutan 12.0 Pakistan 12.0 India 11.5 Bangladesh 10.0 Nepal 9.0 Maldives 7.0 Sri Lanka 5.5 Afghanistan 2.5 0 3 6 9 12 15 Source: Doing Business database. Getting Electricity This topic tracks the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. In addition to assessing e ciency of connection process, Reliability of supply and transparency of tari index measures reliability of power supply and 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 Page 17   To make the data comparable across economies, several assumptions 0 3 6 9 12 15 Doing Business 2018 Source: Doing Business database. SOUTH ASIA (SA) Getting Electricity This topic tracks the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. In addition to assessing e ciency of connection process, Reliability of supply and transparency of tari index measures reliability of power supply and 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 (number) are used. Submitting all relevant documents and obtaining all The warehouse: necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and receiving - Is located in the economy’s largest business city. For 11 economies the 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 purchasing material for these works is in an area with no physical constraints. For example, the property is Concluding any necessary supply contract and not near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst Time required to complete each procedure time. (calendar days) - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is Is at least 1 calendar day 929 square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering information The electricity connection: Reflects the time spent in practice, with little follow- - Is a permanent one with a three-phase, four-wire Y connection with a up and no prior contact with officials subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of Cost required to complete each procedure (% 1, when 1 kVA = 1 kilowatt (kW). of income per capita) - Has a length of 150 meters. The connection is to either the low- or Official costs only, no bribes medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the Value added tax excluded warehouse is located and requires works that involve the crossing of a The reliability of supply and transparency of 10- meter road (such as by excavation or overhead lines) but are all tari s index (0-8) carried out on public land. There is no crossing of other owners’ private Duration and frequency of power outages (0–3) property because the warehouse has access to a road. Tools to monitor power outages (0–1) - Does not require work to install the internal wiring of the warehouse. Tools to restore power supply (0–1) This has already been completed up to and including the customer’s Regulatory monitoring of utilities’ performance (0– service panel or switchboard and the meter base. 1) Financial deterrents limiting outages (0–1) The monthly consumption: Transparency and accessibility of tariffs (0–1) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of Price of electricity (cents per kilowatt-hour)* capacity on average and that there are no electricity cuts (assumed for Price based on monthly bill for commercial simplicity reasons) and the monthly energy consumption is 26,880 warehouse in case study kilowatt-hours (kWh); hourly consumption is 112 kWh. *Note: Doing Business measures the price of - If multiple electricity suppliers exist, the warehouse is served by the electricity, but it is not included in the distance to cheapest supplier. frontier score nor the ranking on the ease of - Tari s e ective in March of the current year are used for calculation of getting electricity. the price of electricity for the warehouse. Although March has 31 days, for calculation purposes only 30 days are used. Getting Electricity Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in South Asia (SA) to connect a warehouse to electricity? The global rankings of these economies on the ease of getting electricity suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. Page 18   getting electricity. the price of electricity for the warehouse. Although March has 31 days, Doing Business 2018 SOUTH ASIA (SA) for calculation purposes only 30 days are used. Getting Electricity Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in South Asia (SA) to connect a warehouse to electricity? The global rankings of these economies on the ease of getting electricity suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of getting electricity India (Rank 29) 85.21 Bhutan (Rank 56) 80.36 Sri Lanka (Rank 93) 70.98 Nepal (Rank 133) 57.95 Maldives (Rank 143) 53.69 Afghanistan (Rank 163) 44.58 Pakistan (Rank 167) 42.39 Bangladesh (Rank 185) 16.97 Regional Average (Rank 121) 56.52 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Getting Electricity The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to get a new electricity connection in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 19   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Electricity The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to get a new electricity connection in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to get an electricity connection in economies in South Asia (SA) Procedures (number) Regional Average 5.7 Latin America and Caribbean (LAC) 5.5 Europe and Central Asia (ECA) 5.4 Middle East and North Africa (MENA) 4.8 OECD High Income 4.7 East Asia and the Pacific (EAP) 4.5 Bangladesh 9.0 Afghanistan 6.0 Maldives 6.0 Pakistan 5.4 India 5.0 Nepal 5.0 Sri Lanka 5.0 Bhutan 4.0 0 2 4 6 8 10 Source: Doing Business database. Getting Electricity Time (days) Page 20   0 2 4 6 8 10 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Electricity Time (days) Regional Average 136.4 Europe and Central Asia (ECA) 113.7 Middle East and North Africa (MENA) 81.4 OECD High Income 79.1 East Asia and the Pacific (EAP) 71.6 Latin America and Caribbean (LAC) 66.0 Bangladesh 428.9 Pakistan 180.7 Afghanistan 114.0 Sri Lanka 100.0 Maldives 91.0 Nepal 70.0 Bhutan 61.0 India 45.9 0 50 100 150 200 250 300 350 400 450 Source: Doing Business database. Getting Electricity Cost (% of income per capita) Regional Average 1163.2 Latin America and Caribbean (LAC) 927.4 Page 21   0 50 100 150 200 250 300 350 400 450 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Electricity Cost (% of income per capita) Regional Average 1163.2 Latin America and Caribbean (LAC) 927.4 Middle East and North Africa (MENA) 780.3 East Asia and the Pacific (EAP) 712.0 Europe and Central Asia (ECA) 344.3 OECD High Income 63.0 Bangladesh 2602.9 Afghanistan 2426.7 Pakistan 1663.7 Nepal 993.7 Sri Lanka 777.0 Bhutan 461.4 Maldives 283.5 India 96.7 0 500 1000 1500 2000 2500 3000 Source: Doing Business database. Getting Electricity Reliability of supply and transparency of tariff index (0-8) OECD High Income 7.4 Europe and Central Asia (ECA) 5.3 Page 22   0 500 1000 1500 2000 2500 3000 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Electricity Reliability of supply and transparency of tariff index (0-8) OECD High Income 7.4 Europe and Central Asia (ECA) 5.3 Latin America and Caribbean (LAC) 4.2 Middle East and North Africa (MENA) 4.2 East Asia and the Pacific (EAP) 3.7 Regional Average 2.1 India 7.0 Bhutan 5.0 Sri Lanka 5.0 Afghanistan 0.0 Bangladesh 0.0 Maldives 0.0 Nepal 0.0 Pakistan 0.0 0 1 2 3 4 5 6 7 8 Source: Doing Business database. 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. Page 23   What the indicators measure Case study assumptions 0 1 2 3 4 5 6 7 8 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. 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 To make the data comparable across economies, several assumptions immovable 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, paying The parties (buyer and seller): 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 economy’s largest business business citya. city. 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 Each procedure starts on a separate day - though The property (fully owned by the seller): procedures that can be fully completed online are - Has a value of 50 times income per capita, which equals the sale price. - Is fully owned by the seller. an exception to this rule - Has no mortgages attached and has been under the same ownership for Procedure is considered completed once final the past 10 years. document is received - Is registered in the land registry or cadastre, or both, and is free of title No prior contact with officials disputes. Cost required to complete each procedure (% - Is located in a periurban commercial zone, and no rezoning is required. of property value) - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story warehouse of 929 square meters (10,000 Official costs only (such as administrative fees, square feet) is located on the land. The warehouse is 10 years old, is in duties and taxes). good condition, has no heating system and complies with all safety Value Added Tax, Capital Gains Tax and illicit standards, building codes and legal requirements. The property, payments are excluded consisting of land and building, will be transferred in its entirety. Quality of land administration index (0-30) - Will not be subject to renovations or additional construction following the purchase. Reliability of infrastructure index (0-8) - Has no trees, natural water sources, natural reserves or historical Transparency of information index (0–6) monuments of any kind. Geographic coverage index (0–8) - Will not be used for special purposes, and no special permits, such as for Land dispute resolution index (0–8) residential use, industrial plants, waste storage or certain types of Equal access to property rights index (-2–0) agricultural activities, are required. - Has no occupants, and no other party holds a legal interest in it. Registering Property Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in South Asia (SA) to transfer property? The global rankings of these economies on the ease of registering property suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of registering property Page 24   Doing Business 2018 SOUTH ASIA (SA) Registering Property Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in South Asia (SA) to transfer property? The global rankings of these economies on the ease of registering property suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of registering property Bhutan (Rank 56) 73.41 Nepal (Rank 84) 64.82 India (Rank 154) 47.08 Sri Lanka (Rank 157) 45.92 Pakistan (Rank 170) 41.41 Maldives (Rank 174) 39.97 Bangladesh (Rank 185) 27.67 Afghanistan (Rank 186) 27.50 Regional Average (Rank 146) 45.97 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Registering Property The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to complete a property transfer in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 25   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Registering Property The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to complete a property transfer in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to register property in economies in South Asia (SA) Procedures (number) Latin America and Caribbean (LAC) 7.2 Regional Average 6.8 Middle East and North Africa (MENA) 5.7 East Asia and the Pacific (EAP) 5.5 Europe and Central Asia (ECA) 5.3 OECD High Income 4.7 Afghanistan 9.0 Sri Lanka 9.0 Bangladesh 8.0 India 8.0 Pakistan 7.7 Maldives 6.0 Nepal 4.0 Bhutan 3.0 0 2 4 6 8 10 Source: Doing Business database. Registering Property Time (days) Page 26   0 2 4 6 8 10 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Registering Property Time (days) Regional Average 111.6 East Asia and the Pacific (EAP) 74.5 Latin America and Caribbean (LAC) 63.3 Middle East and North Africa (MENA) 30.3 OECD High Income 22.3 Europe and Central Asia (ECA) 20.4 Afghanistan 250.0 Bangladesh 244.0 Pakistan 154.8 Bhutan 77.0 Maldives 57.0 India 53.0 Sri Lanka 51.0 Nepal 6.0 0 50 100 150 200 250 300 Source: Doing Business database. Registering Property Cost (% of property value) Regional Average 7.0 Middle East and North Africa (MENA) 6.0 Page 27   0 50 100 150 200 250 300 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Registering Property Cost (% of property value) Regional Average 7.0 Middle East and North Africa (MENA) 6.0 Latin America and Caribbean (LAC) 5.8 East Asia and the Pacific (EAP) 4.3 OECD High Income 4.2 Europe and Central Asia (ECA) 2.5 Maldives 15.8 India 8.4 Bangladesh 6.9 Sri Lanka 5.1 Afghanistan 5.0 Bhutan 5.0 Nepal 4.8 Pakistan 4.6 0 2 4 6 8 10 12 14 16 18 Source: Doing Business database. Registering Property Quality of the land administration index (0-30) OECD High Income 22.7 Europe and Central Asia (ECA) 19.8 Page 28   0 2 4 6 8 10 12 14 16 18 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Registering Property Quality of the land administration index (0-30) OECD High Income 22.7 Europe and Central Asia (ECA) 19.8 East Asia and the Pacific (EAP) 15.8 Middle East and North Africa (MENA) 13.4 Latin America and Caribbean (LAC) 12.0 Regional Average 8.0 Bhutan 24.0 Maldives 8.5 India 8.2 Pakistan 7.6 Nepal 5.5 Bangladesh 4.5 Afghanistan 3.0 Sri Lanka 2.5 0 5 10 15 20 25 30 Source: Doing Business database. Getting Credit This topic explores two sets of issues—the 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 (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Page 29   Rights of borrowers and lenders through collateral through 2 sets of indicators. The depth of credit information index 0 5 10 15 20 25 30 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Credit This topic explores two sets of issues—the 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 (0–12) 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 collateral through 2 sets of indicators. The depth of credit information index 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 (0–8) which collateral and bankruptcy laws protect the rights of borrowers and Scope and accessibility of credit information lenders and thus facilitate lending. For each economy it is first distributed by credit bureaus and credit registries determined whether a unitary secured transactions system exists. Then (0-8) two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced Credit bureau coverage (% of adults) according to the law. Special emphasis is given to how the collateral Number of individuals and firms listed in largest registry operates (if registration of security interests is possible). The credit bureau as a percentage of adult population case scenarios involve a secured borrower, company ABC, and a secured Credit registry coverage (% of adults) lender, BizBank. Number of individuals and firms listed in credit In some economies the legal framework for secured transactions will registry as a percentage of adult population allow only case A or case B (not both) to apply. Both cases examine the same set 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 economy’s 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 fiduciary transfer- of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Getting Credit Where do the region’s economies stand today? How well do the credit information systems and collateral and bankruptcy laws in economies in South Asia (SA) facilitate access to credit? The global rankings of these economies on the ease of getting credit suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of getting credit Page 30   ABC’s combined movable assets (or as much of ABC’s movable assets as Doing Business 2018 SOUTH ASIA (SA) possible). ABC keeps ownership and possession of the assets. Getting Credit Where do the region’s economies stand today? How well do the credit information systems and collateral and bankruptcy laws in economies in South Asia (SA) facilitate access to credit? The global rankings of these economies on the ease of getting credit suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of getting credit India (Rank 29) 75.00 Bhutan (Rank 77) 55.00 Nepal (Rank 90) 50.00 Pakistan (Rank 105) 45.00 Afghanistan (Rank 105) 45.00 Sri Lanka (Rank 122) 40.00 Maldives (Rank 133) 35.00 Bangladesh (Rank 159) 25.00 Regional Average (Rank 103) 46.25 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Getting Credit Another way to assess how well regulations and institutions support lending and borrowing in the region is to see where the region stands in the distribution of scores across regions. The rst gure highlights the score on the strength of legal rights index in South Asia (SA) and comparator regions. The second gure shows the same thing for the depth of credit information index. Page 31   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Credit Another way to assess how well regulations and institutions support lending and borrowing in the region is to see where the region stands in the distribution of scores across regions. The rst gure highlights the score on the strength of legal rights index in South Asia (SA) and comparator regions. The second gure shows the same thing for the depth of credit information index. How strong are legal rights for borrowers and lenders Strength of legal rights index (0-12) East Asia and the Pacific (EAP) 7.2 Europe and Central Asia (ECA) 6.6 OECD High Income 6.0 Latin America and Caribbean (LAC) 5.3 Regional Average 5.3 Middle East and North Africa (MENA) 1.6 Nepal 10.0 Afghanistan 9.0 India 8.0 Bangladesh 5.0 Bhutan 4.0 Maldives 2.0 Pakistan 2.0 Sri Lanka 2.0 0 2 4 6 8 10 12 Source: Doing Business database. Getting Credit Depth of credit information index (0-8) Page 32   0 2 4 6 8 10 12 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Getting Credit Depth of credit information index (0-8) OECD High Income 6.6 Europe and Central Asia (ECA) 6.3 Latin America and Caribbean (LAC) 4.8 Middle East and North Africa (MENA) 4.8 East Asia and the Pacific (EAP) 4.2 Regional Average 4.0 Bhutan 7.0 India 7.0 Pakistan 7.0 Sri Lanka 6.0 Maldives 5.0 Afghanistan 0.0 Bangladesh 0.0 Nepal 0.0 0 1 2 3 4 5 6 7 8 Source: Doing Business database. 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 (0–10): Review and Page 33   To make the data comparable across economies, a case study uses 0 1 2 3 4 5 6 7 8 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. 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 (0–10): Review and To make the data comparable across economies, a case study uses approval requirements for related-party several assumptions about the business and the transaction. transactions; Disclosure requirements for related- party transactions The business (Buyer): - Is a publicly traded corporation listed on the economy’s most important Extent of director liability index (0–10): Ability of stock exchange. If the number of publicly traded companies listed on minority shareholders to sue and hold interested that exchange is less than 10, or if there is no stock exchange in the directors liable for prejudicial related-party economy, it is assumed that Buyer is a large private company with transactions; Available legal remedies (damages, multiple shareholders. disgorgement of profits, fines, imprisonment, - Has a board of directors and a chief executive o cer (CEO) who may rescission of the transaction) legally act on behalf of Buyer where permitted, even if this is not Ease of shareholder suits index (0–10): Access to speci cally required by law. internal corporate documents; Evidence obtainable - Has a supervisory board (applicable to economies with a two-tier board during trial and allocation of legal expenses system) on which 60% of the shareholder-elected members have been Extent of conflict of interest regulation index appointed by Mr. James, who is Buyer’s controlling shareholder and a (0–10): Simple average of the extent of disclosure, member of Buyer’s board of directors. extent of director liability and ease of shareholder - Has not adopted any bylaws or articles of association that di er from indices default minimum standards and does not follow any nonmandatory codes, 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 Buyer’s 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 compensation, audits and financial prospects stores. Extent of shareholder governance index (0–10): - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks Simple average of the extent of shareholders to expand Buyer’s distribution of its food products, a proposal to which rights, extent of ownership and control and extent Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value. of corporate transparency indices - The proposed transaction is part of the company’s ordinary course of Strength of minority investor protection index business and is not outside the authority of the company. (0–10): Simple average of the extent of conflict of - Buyer enters into the transaction. All required approvals are obtained, interest regulation and extent of shareholder and all required disclosures made (that is, the transaction is not governance indices fraudulent). - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Protecting Minority Investors Where do the region’s economies stand today? How strong are investor protections against self-dealing in economies in South Asia (SA)? The global rankings of these economies on the strength of investor protection index suggest an answer. While the indicator does not measure all aspects related to the protection of minority investors, a higher ranking does indicate that an economy’s regulations o er stronger investor protections against self-dealing in the areas measured. How economies in South Asia (SA) rank on the ease of protecting minority investors Page 34   - The transaction causes damages to Buyer. Shareholders sue Mr. James Doing Business 2018 SOUTH ASIA (SA) and the other parties that approved the transaction. Protecting Minority Investors Where do the region’s economies stand today? How strong are investor protections against self-dealing in economies in South Asia (SA)? The global rankings of these economies on the strength of investor protection index suggest an answer. While the indicator does not measure all aspects related to the protection of minority investors, a higher ranking does indicate that an economy’s regulations o er stronger investor protections against self-dealing in the areas measured. How economies in South Asia (SA) rank on the ease of protecting minority investors India (Rank 4) 80.00 Pakistan (Rank 20) 71.67 Sri Lanka (Rank 43) 63.33 Nepal (Rank 62) 58.33 Bangladesh (Rank 76) 56.67 Bhutan (Rank 124) 46.67 Maldives (Rank 132) 43.33 Afghanistan (Rank 189) 10.00 Regional Average (Rank 81) 53.75 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Protecting Minority Investors The strength of minority investor protection index is the average of the extent of con ict of interest regulation index and the extent of shareholder governance index. The index ranges from 0 to 10, rounded to the nearest decimal place, with higher Page 35   values indicating stronger minority investor protections. The following two gures highlight the scores on the various minority 0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Protecting Minority Investors The strength of minority investor protection index is the average of the extent of con ict of interest regulation index and the extent of shareholder governance index. The index ranges from 0 to 10, rounded to the nearest decimal place, with higher values indicating stronger minority investor protections. The following two gures highlight the scores on the various minority investor protection indices in South Asia (SA). Comparing the scores across the region and with averages both for the region and for comparator regions can provide useful insights. How extensive are con ict of interest regulations Extent of conflict of interest regulation index (0-10) OECD High Income 6.4 Europe and Central Asia (ECA) 6.3 East Asia and the Pacific (EAP) 5.7 Regional Average 5.5 Latin America and Caribbean (LAC) 5.3 Middle East and North Africa (MENA) 4.9 India 7.3 Sri Lanka 6.7 Bangladesh 6.3 Pakistan 6.3 Maldives 5.3 Nepal 5.3 Bhutan 4.7 Afghanistan 1.7 0 2 4 6 8 10 Source: Doing Business database. Protecting Minority Investors Page 36   0 2 4 6 8 10 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Protecting Minority Investors Extent of shareholder governance index (0-10) Europe and Central Asia (ECA) 6.6 OECD High Income 6.4 Regional Average 5.3 East Asia and the Pacific (EAP) 4.8 Middle East and North Africa (MENA) 4.7 Latin America and Caribbean (LAC) 4.1 India 8.7 Pakistan 8.0 Nepal 6.3 Sri Lanka 6.0 Bangladesh 5.0 Bhutan 4.7 Maldives 3.3 Afghanistan 0.3 0 2 4 6 8 10 Source: Doing Business database. 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 Page 37   compliance cost 0 2 4 6 8 10 Doing Business 2018 Source: Doing Business database. SOUTH ASIA (SA) 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 contributions a medium size company must pay in a year, and measures and 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, sales with the requirements of post ling processes and time waiting. tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are Time required to comply with 3 major taxes used: (hours per year) - TaxpayerCo is a medium-size business that started operations on January 1, 2015. It produces ceramic flowerpots and sells them at Collecting information, computing tax payable retail. All taxes and contributions recorded are paid in the second year of Completing tax return, filing with agencies operation (calendar year 2016). Taxes and mandatory contributions are Arranging payment or withholding measured at all levels of government. Preparing separate tax accounting books, if required The VAT refund process: Total tax and contribution rate (% of pro t - In June 2016, TaxpayerCo. makes a large capital purchase: the value of before all taxes) the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) Profit or corporate income tax and cost of goods sold are equally expensed per month (875 times Social contributions, labor taxes paid by employer income per capita divided by 12). The machinery seller is registered for Property and property transfer taxes VAT and excess input VAT incurred in June will be fully recovered after Dividend, capital gains, financial transactions taxes four consecutive months if the VAT rate is the same for inputs, sales and Waste collection, vehicle, road and other taxes the machine and the tax reporting period is every month. Input VAT will Post ling Index exceed Output VAT in June 2016. Time to comply with a VAT refund The corporate income tax audit process: Time to receive a VAT refund - An error in calculation of income tax liability (for example, use of Time to comply with a corporate income tax audit incorrect tax depreciation rates, or incorrectly treating an expense as tax Time to complete a corporate income tax audit deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily noti ed the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. Paying Taxes Where do the region’s economies stand today? What is the administrative burden of complying with taxes in economies in South Asia (SA) —and how much do rms pay in taxes? The global rankings of these economies on the ease of paying taxes o er useful information for assessing the tax compliance burden for businesses. The average ranking of the region provides a useful benchmark. How economies in South Asia (SA) rank on the ease of paying taxes Page 38   submits corrected information after the deadline for submitting the Doing Business 2018 SOUTH ASIA (SA) annual tax return, but within the tax assessment period. Paying Taxes Where do the region’s economies stand today? What is the administrative burden of complying with taxes in economies in South Asia (SA) —and how much do rms pay in taxes? The global rankings of these economies on the ease of paying taxes o er useful information for assessing the tax compliance burden for businesses. The average ranking of the region provides a useful benchmark. How economies in South Asia (SA) rank on the ease of paying taxes Bhutan (Rank 17) 88.00 Maldives (Rank 118) 66.08 India (Rank 119) 66.06 Nepal (Rank 146) 58.01 Bangladesh (Rank 152) 56.13 Sri Lanka (Rank 158) 53.70 Pakistan (Rank 172) 46.43 Afghanistan (Rank 176) 41.97 Regional Average (Rank 132) 59.55 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Paying Taxes The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with tax regulations in each economy in the region—the number of payments per year and the time required to prepare, and le and pay taxes the 3 major taxes (corporate income tax, VAT or sales tax and labor taxes and mandatory contributions)—as well Page 39   as the total tax rate. Comparing these indicators across the region and with averages both for the region and for comparator 0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Paying Taxes The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with tax regulations in each economy in the region—the number of payments per year and the time required to prepare, and le and pay taxes the 3 major taxes (corporate income tax, VAT or sales tax and labor taxes and mandatory contributions)—as well as the total tax rate. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. How easy is it to pay taxes in economies in South Asia (SA) - and what are the total tax rates Payments (number per year) Regional Average 28.5 Latin America and Caribbean (LAC) 28.0 East Asia and the Pacific (EAP) 21.8 Middle East and North Africa (MENA) 17.9 Europe and Central Asia (ECA) 16.5 OECD High Income 10.9 Pakistan 47.0 Sri Lanka 47.0 Nepal 34.0 Bangladesh 33.0 Afghanistan 19.0 Bhutan 18.0 Maldives 17.0 India 13.0 0 10 20 30 40 50 Source: Doing Business database. Paying Taxes Page 40   0 10 20 30 40 50 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Paying Taxes Time (hours per year) Latin America and Caribbean (LAC) 332.1 Regional Average 277.3 Europe and Central Asia (ECA) 218.4 Middle East and North Africa (MENA) 203.3 East Asia and the Pacific (EAP) 189.2 OECD High Income 160.7 Bangladesh 435.0 Maldives 390.5 Nepal 339.0 Pakistan 311.5 Afghanistan 275.0 India 214.0 Sri Lanka 168.0 Bhutan 85.0 0 100 200 300 400 500 Source: Doing Business database. Paying Taxes Total tax and contribution rate (% of profit) Latin America and Caribbean (LAC) 46.6 Regional Average 43.0 Page 41   0 100 200 300 400 500 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Paying Taxes Total tax and contribution rate (% of profit) Latin America and Caribbean (LAC) 46.6 Regional Average 43.0 OECD High Income 40.1 East Asia and the Pacific (EAP) 33.6 Europe and Central Asia (ECA) 33.1 Middle East and North Africa (MENA) 32.5 Afghanistan 71.4 India 55.3 Sri Lanka 55.2 Bhutan 35.3 Pakistan 33.8 Bangladesh 33.4 Maldives 30.2 Nepal 29.6 0 10 20 30 40 50 60 70 80 Source: Doing Business database. Paying Taxes Postfiling index (0-100) OECD High Income 83.5 Europe and Central Asia (ECA) 65.2 Page 42   0 10 20 30 40 50 60 70 80 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Paying Taxes Postfiling index (0-100) OECD High Income 83.5 Europe and Central Asia (ECA) 65.2 East Asia and the Pacific (EAP) 56.5 Middle East and North Africa (MENA) 50.6 Latin America and Caribbean (LAC) 47.5 Regional Average 41.0 Bhutan 95.5 India 49.3 Sri Lanka 49.3 Maldives 46.1 Bangladesh 44.4 Nepal 33.4 Pakistan 10.5 Afghanistan 0.0 0 20 40 60 80 100 Source: Doing Business database. 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 procedures—documentary compliance, border compliance and domestic transport—within 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. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptionsPage 43   are made about the traded goods and the transactions: 0 20 40 60 80 100 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. 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 procedures—documentary compliance, border compliance and domestic transport—within 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. 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 or Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 border handling in origin economy days are recorded as 22×24=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 hours. practice, including electronic submissions of information as well as non-shipment-specific Cost: Insurance cost and informal payments for which no receipt is issued documents necessary to complete the trade are excluded from the costs recorded. Costs are reported in U.S. dollars. Border compliance Contributors are asked to convert local currency into U.S. dollars based on Customs clearance and inspections the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and Inspections by other agencies (if applied to more are informed about exchange rates. than 10% of shipments) Port or border handling Assumptions of the case study: - For all 190 economies covered by Doing Processing of documents during clearance, Business, it is assumed a shipment is in a warehouse in the largest inspections and port or border handling. business city of the exporting economy and travels to a warehouse in the Domestic transport largest business city of the importing economy. - It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) Loading and unloading of shipment at warehouse, from its natural import partner—the economy from which it imports the dry port or border largest value (price times quantity) of auto parts. It is assumed each Transport by most widely used mode between economy exports the product of its comparative advantage (defined by the warehouse and terminal or dry port largest export value) to its natural export partner—the economy that is the Traffic delays and road police checks while 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 shipment is en route 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. Trading across Borders Where do the region’s economies stand today? How easy it is for businesses in economies in South Asia (SA) to export and import goods? The global rankings of these economies on the ease of trading across borders suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of trading across borders Page 44   of agriculture or industry, national security agencies and any other government authorities. Doing Business 2018 SOUTH ASIA (SA) Trading across Borders Where do the region’s economies stand today? How easy it is for businesses in economies in South Asia (SA) to export and import goods? The global rankings of these economies on the ease of trading across borders suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of trading across borders Bhutan (Rank 26) 94.25 Nepal (Rank 76) 77.17 Sri Lanka (Rank 86) 73.29 India (Rank 146) 58.56 Maldives (Rank 152) 55.87 Pakistan (Rank 171) 41.94 Bangladesh (Rank 173) 34.86 Afghanistan (Rank 175) 30.63 Regional Average (Rank 126) 58.32 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Trading across Borders The indicators reported here are for trading a shipment of goods by the most widely used mode of transport (whether sea, land, air or some combination of these). The information on the time and cost to complete export and import is collected from local freight forwarders, customs brokers and traders. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 45   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders The indicators reported here are for trading a shipment of goods by the most widely used mode of transport (whether sea, land, air or some combination of these). The information on the time and cost to complete export and import is collected from local freight forwarders, customs brokers and traders. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to trade across borders in economies in South Asia (SA) Time to export: Border compliance (hours) Middle East and North Africa (MENA) 62.6 Latin America and Caribbean (LAC) 62.5 Regional Average 59.4 East Asia and the Pacific (EAP) 55.9 Europe and Central Asia (ECA) 28.0 OECD High Income 12.7 India 106.1 Bangladesh 99.7 Pakistan 75.0 Nepal 56.0 Afghanistan 48.0 Sri Lanka 43.0 Maldives 42.0 Bhutan 5.0 0 20 40 60 80 100 120 Source: Doing Business database. Trading across Borders Page 46   Cost to export: Border compliance (USD) 0 20 40 60 80 100 120 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Cost to export: Border compliance (USD) Latin America and Caribbean (LAC) 526.6 Middle East and North Africa (MENA) 464.5 East Asia and the Pacific (EAP) 387.6 Regional Average 369.8 Europe and Central Asia (ECA) 191.4 OECD High Income 149.9 Maldives 596.0 Afghanistan 453.0 Bangladesh 408.2 Pakistan 406.0 India 382.4 Sri Lanka 366.0 Nepal 288.0 Bhutan 59.0 0 100 200 300 400 500 600 700 Source: Doing Business database. Trading across Borders Time to export: Documentary compliance (hours) Regional Average 77.0 Middle East and North Africa (MENA) 74.3 Page 47   0 100 200 300 400 500 600 700 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Time to export: Documentary compliance (hours) Regional Average 77.0 Middle East and North Africa (MENA) 74.3 East Asia and the Pacific (EAP) 68.1 Latin America and Caribbean (LAC) 53.3 Europe and Central Asia (ECA) 28.0 OECD High Income 2.6 Afghanistan 228.0 Bangladesh 147.0 Pakistan 55.0 Maldives 48.0 Sri Lanka 48.0 Nepal 43.0 India 38.4 Bhutan 9.0 0 50 100 150 200 250 Source: Doing Business database. Trading across Borders Cost to export: Documentary compliance (USD) Middle East and North Africa (MENA) 243.6 Regional Average 179.5 Page 48   0 50 100 150 200 250 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Cost to export: Documentary compliance (USD) Middle East and North Africa (MENA) 243.6 Regional Average 179.5 Europe and Central Asia (ECA) 113.9 East Asia and the Pacific (EAP) 112.1 Latin America and Caribbean (LAC) 110.5 OECD High Income 35.5 Afghanistan 344.0 Maldives 300.0 Pakistan 257.0 Bangladesh 225.0 Nepal 110.0 India 91.9 Sri Lanka 58.0 Bhutan 50.0 0 50 100 150 200 250 300 350 400 Source: Doing Business database. Trading across Borders Time to import: Border compliance (hours) Regional Average 113.8 Middle East and North Africa (MENA) 112.3 Page 49   0 50 100 150 200 250 300 350 400 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Time to import: Border compliance (hours) Regional Average 113.8 Middle East and North Africa (MENA) 112.3 East Asia and the Pacific (EAP) 70.5 Latin America and Caribbean (LAC) 64.4 Europe and Central Asia (ECA) 25.9 OECD High Income 8.7 India 264.5 Bangladesh 183.0 Pakistan 129.3 Maldives 100.0 Afghanistan 96.0 Sri Lanka 72.0 Nepal 61.0 Bhutan 5.0 0 50 100 150 200 250 300 Source: Doing Business database. Trading across Borders Cost to import: Border compliance (USD) Latin America and Caribbean (LAC) 684.0 Regional Average 638.1 Page 50   0 50 100 150 200 250 300 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Cost to import: Border compliance (USD) Latin America and Caribbean (LAC) 684.0 Regional Average 638.1 Middle East and North Africa (MENA) 540.8 East Asia and the Pacific (EAP) 431.1 Europe and Central Asia (ECA) 185.1 OECD High Income 111.6 Bangladesh 1293.8 Maldives 981.0 Pakistan 936.6 Afghanistan 750.0 India 543.2 Sri Lanka 300.0 Nepal 190.0 Bhutan 110.0 0 200 400 600 800 1000 1200 1400 Source: Doing Business database. Trading across Borders Time to import: Documentary compliance (hours) Regional Average 104.7 Middle East and North Africa (MENA) 94.5 Page 51   0 200 400 600 800 1000 1200 1400 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Time to import: Documentary compliance (hours) Regional Average 104.7 Middle East and North Africa (MENA) 94.5 Latin America and Caribbean (LAC) 79.9 East Asia and the Pacific (EAP) 65.6 Europe and Central Asia (ECA) 27.4 OECD High Income 3.9 Afghanistan 324.0 Bangladesh 144.0 Pakistan 143.0 India 61.3 Maldives 61.0 Nepal 48.0 Sri Lanka 48.0 Bhutan 8.0 0 50 100 150 200 250 300 350 Source: Doing Business database. Trading across Borders Cost to import: Documentary compliance (USD) Regional Average 341.6 Middle East and North Africa (MENA) 266.2 Page 52   0 50 100 150 200 250 300 350 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Trading across Borders Cost to import: Documentary compliance (USD) Regional Average 341.6 Middle East and North Africa (MENA) 266.2 Latin America and Caribbean (LAC) 119.6 East Asia and the Pacific (EAP) 111.5 Europe and Central Asia (ECA) 94.7 OECD High Income 25.7 Afghanistan 900.0 Pakistan 735.0 Bangladesh 370.0 Sri Lanka 283.0 Maldives 180.0 India 134.8 Nepal 80.0 Bhutan 50.0 0 200 400 600 800 1000 Source: Doing Business database. 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 Page 53   The dispute in the case study involves the breach of a sales contract 0 200 400 600 800 1000 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. 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 dispute in the case study involves the breach of a sales contract the 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 Time to enforce the judgment To make the data comparable across economies, Doing Business uses Cost required to enforce a contract through several assumptions about the case: the courts (% of claim) - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. Attorney fees For 11 economies the data are also collected for the second largest Court fees business city. Enforcement fees - The buyer orders custom-made goods, then fails to pay. Quality of judicial processes index (0-18) - The value of the dispute is 200% of the income per capita or the Court structure and proceedings (-1-5) equivalent in local currency of USD 5,000, whichever is greater. - The seller sues the buyer before the court with jurisdiction over Case management (0-6) commercial cases worth 200% of income per capita or $5,000. Court automation (0-4) - The seller requests a pretrial attachment to secure the claim. Alternative dispute resolution (0-3) - The dispute on the quality of the goods requires an expert opinion. - The judge decides in favor of the seller; there is no appeal. - The seller enforces the judgment through a public sale of the buyer’s movable assets. Enforcing Contracts Where do the region’s economies stand today? How e cient is the process of resolving a commercial dispute through the courts in economies in South Asia (SA)? The global rankings of these economies on the ease of enforcing contracts suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of enforcing contracts Bhutan (Rank 25) 69.99 Maldives (Rank 106) 55.07 Nepal (Rank 153) 45.26 Pakistan (Rank 156) 43.49 Page 54   - The seller enforces the judgment through a public sale of the buyer’s Doing Business 2018 SOUTH ASIA (SA) movable assets. Enforcing Contracts Where do the region’s economies stand today? How e cient is the process of resolving a commercial dispute through the courts in economies in South Asia (SA)? The global rankings of these economies on the ease of enforcing contracts suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in South Asia (SA) rank on the ease of enforcing contracts Bhutan (Rank 25) 69.99 Maldives (Rank 106) 55.07 Nepal (Rank 153) 45.26 Pakistan (Rank 156) 43.49 India (Rank 164) 40.76 Sri Lanka (Rank 165) 39.31 Afghanistan (Rank 181) 31.76 Bangladesh (Rank 189) 22.21 Regional Average (Rank 142) 43.48 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Enforcing Contracts The indicators underlying the rankings may also be revealing. Data collected by Doing Business show what it takes to enforce a contract through the courts in each economy in the region: the time, the cost and quality of judicial processes index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 55   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Enforcing Contracts The indicators underlying the rankings may also be revealing. Data collected by Doing Business show what it takes to enforce a contract through the courts in each economy in the region: the time, the cost and quality of judicial processes index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to enforce a contract through the courts in economies in South Asia (SA) Time (days) Regional Average 1101.7 Latin America and Caribbean (LAC) 767.2 Middle East and North Africa (MENA) 638.5 OECD High Income 577.8 East Asia and the Pacific (EAP) 565.7 Europe and Central Asia (ECA) 489.9 Afghanistan 1642.0 India 1445.0 Bangladesh 1442.0 Sri Lanka 1318.0 Pakistan 1071.2 Nepal 910.0 Maldives 760.0 Bhutan 225.0 0 200 400 600 800 1000 1200 1400 1600 1800 Source: Doing Business database. Enforcing Contracts Cost (% of claim value) Page 56   0 200 400 600 800 1000 1200 1400 1600 1800 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Enforcing Contracts Cost (% of claim value) East Asia and the Pacific (EAP) 47.3 Latin America and Caribbean (LAC) 31.4 Regional Average 29.6 Europe and Central Asia (ECA) 26.2 Middle East and North Africa (MENA) 24.4 OECD High Income 21.6 Bangladesh 66.8 India 31.0 Afghanistan 29.0 Nepal 26.8 Bhutan 23.1 Sri Lanka 22.8 Pakistan 20.5 Maldives 16.5 0 10 20 30 40 50 60 70 80 Source: Doing Business database. Enforcing Contracts Quality of judicial processes index (0-18) OECD High Income 11.0 Europe and Central Asia (ECA) 10.0 Page 57   0 10 20 30 40 50 60 70 80 Doing Business 2018 Source: Doing Business database. SOUTH ASIA (SA) Enforcing Contracts Quality of judicial processes index (0-18) OECD High Income 11.0 Europe and Central Asia (ECA) 10.0 Latin America and Caribbean (LAC) 8.4 East Asia and the Pacific (EAP) 7.9 Regional Average 7.0 Middle East and North Africa (MENA) 5.8 India 10.3 Bhutan 8.0 Bangladesh 7.5 Sri Lanka 7.5 Maldives 6.5 Pakistan 5.7 Nepal 5.5 Afghanistan 5.0 0 2 4 6 8 10 12 14 16 18 Source: Doing Business database. 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. Page 58   0 2 4 6 8 10 12 14 16 18 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. 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 Cost required to recover debt (% of debtor’s - A hotel located in the largest city (or cities) has 201 employees and 50 estate) suppliers. The hotel experiences nancial di culties. - The value of the hotel is 100% of the income per capita or the Measured as percentage of estate value equivalent in local currency of USD 200,000, whichever is greater. Court fees - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s 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 Whether business continues operating as a going index tests whether economies adopted internationally accepted good concern or business assets are sold piecemeal practices in four areas: commencement of proceedings, management of Recovery rate for creditors debtor’s assets, reorganization proceedings and creditor participation. 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 debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Resolving Insolvency Where do the region’s economies stand today? How e cient are insolvency proceedings in economies in South Asia (SA)? The global rankings of these economies on the ease of resolving insolvency suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark for assessing the e ciency of insolvency proceedings. Speed, low costs and continuation of viable businesses characterize the top performing economies. How economies in South Asia (SA) rank on the ease of resolving insolvency Page 59   Reorganization proceedings index (0-3) Doing Business Creditor 2018 participation SOUTH ASIA (SA) index (0-4) Resolving Insolvency Where do the region’s economies stand today? How e cient are insolvency proceedings in economies in South Asia (SA)? The global rankings of these economies on the ease of resolving insolvency suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark for assessing the e ciency of insolvency proceedings. Speed, low costs and continuation of viable businesses characterize the top performing economies. How economies in South Asia (SA) rank on the ease of resolving insolvency Nepal (Rank 76) 48.15 Pakistan (Rank 82) 45.83 Sri Lanka (Rank 88) 44.99 India (Rank 103) 40.75 Maldives (Rank 139) 33.26 Bangladesh (Rank 152) 27.71 Afghanistan (Rank 161) 23.62 Bhutan (Rank 168) 0.00 Regional Average (Rank 121) 33.04 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Resolving Insolvency The indicators underlying the rankings may be more revealing. Data collected by Doing Business show the average recovery rate and the average strength of insolvency framework index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 60   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Resolving Insolvency The indicators underlying the rankings may be more revealing. Data collected by Doing Business show the average recovery rate and the average strength of insolvency framework index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. How e cient is the insolvency process in economies in South Asia (SA) Recovery rate (cents on the dollar) OECD High Income 71.2 Europe and Central Asia (ECA) 38.0 East Asia and the Pacific (EAP) 35.4 Regional Average 32.7 Latin America and Caribbean (LAC) 30.8 Middle East and North Africa (MENA) 25.5 Maldives 50.2 Pakistan 44.5 Nepal 43.0 Sri Lanka 42.9 Bangladesh 28.3 Afghanistan 26.5 India 26.4 Bhutan 0.0 0 20 40 60 80 100 Source: Doing Business database. Business Reforms Starting a Business Page 61   In the year ending June 1, 2017, 137 economies implemented 283 total reforms across the di erent areas measured by Doing 0 20 40 60 80 100 Doing Business 2018 SOUTH ASIA (SA) Source: Doing Business database. Business Reforms Starting a Business In the year ending June 1, 2017, 137 economies implemented 283 total reforms across the di erent areas measured by Doing Business, an increase of over 20% from last year. 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 implemented in South Asia (SA) since Doing Business 2008. DB Year Economy Reform Afghanistan made starting a business more costly by requiring that DB2018 Afghanistan entrepreneurs pay the business license fee for three years at the time of incorporation. Bangladesh made starting a business more expensive by increasing the cost of DB2018 Bangladesh business registration at the Registrar of Joint Stock Companies and Firms. This reform applies to both Chittagong and Dhaka. Bhutan made starting a business easier by reducing the time for obtaining a DB2018 Bhutan Security Clearance Certificate, registering at the Office of the Registrar and registering for taxes. India made starting a business faster by merging the applications for the Permanent Account Number (PAN) and the Tax Account Number (TAN), and by DB2018 India improving the online application system. This reform applies to both Delhi and Mumbai. Mumbai also made starting a business faster by merging the applications for the value-added tax and the profession tax. Pakistan made starting a business easier by replacing the need to obtain a digital DB2018 Pakistan signature for company incorporation with a less costly personal identification number. This change applies to both Karachi and Lahore. Sri Lanka made starting a business easier by removing the stamp duty on newly DB2017 Sri Lanka issued shares. Afghanistan made starting a business more costly by increasing the registration DB2016 Afghanistan and publication fees. India made starting a business easier by eliminating the minimum capital DB2016 India requirement and the need to obtain a certificate to commence business operations. This reform applies to both Delhi and Mumbai. Sri Lanka made starting a business easier by eliminating the requirement to DB2016 Sri Lanka notify the Registrar of Companies of the payment of stamp duty for the initial issuance of shares. India made starting a business easier by considerably reducing the registration fees, but also made it more difficult by introducing a requirement to file a DB2015 India declaration before the commencement of business operations. These changes apply to both Delhi and Mumbai. Afghanistan made starting a business more difficult by increasing the publication DB2015 Afghanistan fees and prolonging the time required for registration. Afghanistan made starting a business easier by reducing the time and cost to DB2014 Afghanistan obtain a business license and by eliminating the inspection of the premises of newly registered companies. Page 62   Bangladesh made starting a business easier by automating the registration apply to both Delhi and Mumbai. Doing Business 2018 SOUTH ASIA (SA) Afghanistan made starting a business more difficult by increasing the publication DB2015 Afghanistan fees and prolonging the time required for registration. Afghanistan made starting a business easier by reducing the time and cost to DB2014 Afghanistan obtain a business license and by eliminating the inspection of the premises of newly registered companies. Bangladesh made starting a business easier by automating the registration DB2014 Bangladesh process and reducing the time required to obtain a trading license and to complete the tax and value added tax registration. Bhutan made starting a business easier by reducing the time required to obtain DB2014 Bhutan the security clearance certificate. Nepal made starting a business easier by reducing the administrative processing DB2014 Nepal time at the company registrar and by establishing a data link between agencies involved in the incorporation process. Sri Lanka made starting a business easier by computerizing and expediting the DB2013 Sri Lanka process of obtaining a registration number for the Employees Provident Fund and Employees Trust Fund. Bhutan eased the process of starting a business by making its criminal records DB2012 Bhutan search electronic and making the rubber company stamps available on the local market. India eased business start-up by establishing an online VAT registration system DB2011 India and replacing the physical stamp previously required with an online version. Bangladesh made business start-up easier by eliminating the requirement to buy DB2011 Bangladesh adhesive stamps and further enhancing the online registration system. Dealing with Construction Permits DB Year Economy Reform India made dealing with construction permits less cumbersome by implementing an online system that has streamlined the process at the Municipality of New DB2018 India Delhi and Municipality of Greater Mumbai. The online system has streamlined the process of obtaining a building permit, thereby reducing the number of procedures and time required to obtain a building permit in India. Nepal made dealing with construction permits more difficult by increasing the DB2017 Nepal cost of obtaining a building permit. The Maldives made dealing with construction permits more difficult by requiring DB2016 Maldives that building plans be stamped and approved by private structural and architectural checkers prior to requesting a building permit. Sri Lanka made dealing with construction permits less time-consuming by DB2016 Sri Lanka streamlining the internal review process for building permit applications. Nepal made dealing with construction permits easier by implementing a new DB2015 Nepal electronic building permit system. Sri Lanka made dealing with construction permits easier by eliminating the DB2014 Sri Lanka requirement to obtain a tax clearance and by reducing building permit fees. India reduced the time required to obtain a building permit by establishing strict DB2013 India time limits for preconstruction approvals. Page 63   Getting Electricity electronic building permit system. Doing Business 2018 SOUTH ASIA (SA) Sri Lanka made dealing with construction permits easier by eliminating the DB2014 Sri Lanka requirement to obtain a tax clearance and by reducing building permit fees. India reduced the time required to obtain a building permit by establishing strict DB2013 India time limits for preconstruction approvals. Getting Electricity DB Year Economy Reform India made getting electricity faster and cheaper by streamlining the process of DB2017 India getting a new commercial electricity connection. This reform impacts Delhi. Bhutan made getting electricity easier by speeding up the process for obtaining a DB2016 Bhutan new connection. The utility in Delhi made the process for getting an electricity connection simpler and faster by eliminating the internal wiring inspection by the Electrical DB2016 India Inspectorate. The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination. In India the utility in Mumbai made getting electricity less costly by reducing the DB2015 India security deposit for a new connection. Sri Lanka made getting electricity easier by improving the utility’s internal DB2014 Sri Lanka workflow and by reducing the time required to process new applications for connections. Bangladesh made getting electricity more difficult by requiring all customers to DB2013 Bangladesh meet 7% of their electricity needs through solar energy, making it necessary to install solar panels. Afghanistan made getting electricity easier by improving the efficiency of the DB2012 Afghanistan electricity department in Kabul and introducing a new fee schedule for connections. Bangladesh made getting electricity more difficult by imposing a moratorium on new electricity connections from April 2010 to March 2011 because of an DB2012 Bangladesh electricity supply shortage. This moratorium has led to long delays for customers and has increased the time to obtain an electricity connection. Registering Property DB Year Economy Reform Pakistan, Karachi improved the transparency of the land registration process by DB2018 Pakistan publishing online the fee schedule and the list of documents necessary to complete any property registration. Pakistan improved the quality of land administration by digitizing ownership and DB2017 Pakistan land records. This reform applies to Lahore. Bhutan made transferring property easier by introducing a computerized land DB2016 Bhutan information system. Sri Lanka made registering property faster by introducing an electronic system at DB2013 Sri Lanka the Land Registry in Colombo. Pakistan made property transfer more affordable by reducing the stamp duty DB2011 Pakistan rate. Page 64   Maldives now allows registered companies to own land as long as all company DB2011 Maldives information system. Doing Business 2018 SOUTH ASIA (SA) Sri Lanka made registering property faster by introducing an electronic system at DB2013 Sri Lanka the Land Registry in Colombo. Pakistan made property transfer more affordable by reducing the stamp duty DB2011 Pakistan rate. Maldives now allows registered companies to own land as long as all company DB2011 Maldives shares are owned by Maldivians. DB2011 Bangladesh Bangladesh reduced the property transfer tax to 6.7% of the property value. Getting Credit DB Year Economy Reform Bhutan improved access to credit information by beginning to distribute DB2018 Bhutan payment data from two utility companies. India strengthened access to credit by amending the rules on priority of secured creditors outside reorganization proceedings and by adopting a new law on DB2018 India insolvency that provides a time limit and clear grounds for relief to the automatic stay for secured creditors during reorganization proceedings. This reform applies to both Delhi and Mumbai. Nepal strengthened access to credit by operationalizing the existing law on DB2018 Nepal secured transactions that implements a functional secured transactions system and establishes a centralized, notice-based, modern collateral registry. Pakistan improved access to credit information guaranteeing by law borrowers’ DB2017 Pakistan rights to inspect their own data. The credit bureau also expanded its borrower coverage. This reform applies to both Lahore and Karachi. DB2016 Afghanistan Afghanistan improved access to credit information by launching a credit registry. Afghanistan strengthened its secured transactions system by implementing a DB2014 Afghanistan unified collateral registry. Bhutan improved access to credit information through new regulations DB2014 Bhutan governing the licensing and functioning of the credit bureau and guaranteeing borrowers’ right to access their data. Sri Lanka strengthened its secured transactions system by establishing an DB2013 Sri Lanka electronic, searchable collateral registry and issuing regulations for its operation. Bangladesh improved access to credit information by establishing an online DB2013 Bangladesh platform for sharing such information. Bhutan improved its credit information system by launching the operation of a DB2012 Bhutan public credit registry. Protecting Minority Investors DB Year Economy Reform Bhutan strengthened minority investor protections by clarifying ownership and DB2018 Bhutan control structures but weakened minority investor protections by reducing shareholder rights. India strengthened minority investor protections by increasing the remedies DB2018 India available in cases of prejudicial transactions between interested parties. This reform applies to both Delhi and Mumbai. Page 65   Bhutan strengthened minority investor protections by clarifying ownership and Doing DB2018 Bhutan SOUTH ASIA (SA) Business 2018 control structures but weakened minority investor protections by reducing shareholder rights. India strengthened minority investor protections by increasing the remedies DB2018 India available in cases of prejudicial transactions between interested parties. This reform applies to both Delhi and Mumbai. Nepal strengthened minority investor protections by requiring greater corporate DB2018 Nepal transparency. Pakistan increased minority investor protections by making it easier to sue DB2018 Pakistan directors in case of prejudicial transactions with interested parties. This reform applies to both Karachi and Lahore. Sri Lanka strengthened minority investor protections by requiring board and in DB2017 Sri Lanka some cases shareholder approval of related-party transactions and by requiring that such transactions undergo external review. India strengthened minority investor protections by requiring greater disclosure of conflicts of interest by board members, increasing the remedies available in DB2015 India case of prejudicial related-party transactions and introducing additional safeguards for shareholders of privately held companies. This reform applies to both Delhi and Mumbai. Sri Lanka strengthened investor protections by requiring greater corporate DB2012 Sri Lanka disclosure in case of transactions between interested parties. Paying Taxes DB Year Economy Reform India made paying taxes easier by making payment of EPF mandatory electronically and introducing a set of administrative measures easing DB2018 India compliance with corporate income tax. This reform applies to both Delhi and Mumbai. Maldives made paying taxes easier by introducing an online system for filing and DB2018 Maldives paying taxes. India made paying taxes easier by introducing an electronic system for paying DB2017 India employee state insurance contributions. This reform applies to both Mumbai and Delhi. Bangladesh made paying taxes more complicated for companies by increasing DB2017 Bangladesh the time it takes to prepare VAT and corporate income tax returns. This reform applies to both Chittagong and Dhaka. Afghanistan made paying taxes more costly by increasing the business receipts DB2017 Afghanistan tax rate. Bangladesh made paying taxes less costly for companies by reducing the DB2016 Bangladesh corporate income tax rate. This reform applies to both Chittagong and Dhaka. Maldives made paying taxes easier for companies by introducing more payment counters at the tax authority and express counters at peak periods. At the same DB2016 Maldives time, Maldives introduced additional disclosure requirements for filing corporate income tax returns. Sri Lanka made paying taxes more costly for companies by increasing the DB2015 Sri Lanka reduced corporate income tax rate for qualifying small and medium-size enterprises. Page 66   counters at the tax authority and express counters at peak periods. At the same DB2016 Maldives Doing Business 2018 SOUTH ASIA (SA) time, Maldives introduced additional disclosure requirements for filing corporate income tax returns. Sri Lanka made paying taxes more costly for companies by increasing the DB2015 Sri Lanka reduced corporate income tax rate for qualifying small and medium-size enterprises. Maldives made paying taxes easier for companies by introducing electronic filing DB2014 Maldives systems for corporate income tax, sales tax and pension contributions. Sri Lanka made paying taxes easier for companies by introducing an electronic DB2014 Sri Lanka filing system for social security contributions. Maldives introduced a goods and service tax, a business profit tax and additional DB2013 Maldives social contributions. India eased the administrative burden of paying taxes for firms by introducing DB2012 India mandatory electronic filing and payment for value added tax. DB2012 Pakistan Pakistan increased the profit tax rate for small firms. Sri Lanka made paying taxes less costly for businesses by abolishing the turnover DB2012 Sri Lanka tax and social security contribution and by reducing corporate income tax, value added tax and national building tax rates. DB2011 Sri Lanka India reduced the administrative burden of paying taxes by abolishing the fringe DB2011 India benefit tax and improving electronic payment. Trading across Borders DB Year Economy Reform India reduced import border compliance time in Mumbai by improving infrastructure at the Nhava Sheva Port. Export and import border compliance DB2018 India cost were also reduced in both Delhi and Mumbai by eliminating merchant overtime fees and through the increased use of electronic and mobile platforms. Pakistan made importing and exporting easier by developing a new container DB2018 Pakistan terminal and enhancing its customs platform for electronic document submission. These changes apply to both Karachi and Lahore. Sri Lanka made exporting and importing easier by developing a customs single DB2018 Sri Lanka window. Pakistan made exporting and importing easier by enhancing its electronic "Web DB2017 Pakistan Based One Customs Platform". Exporting in Nepal became more difficult due to an increase in the time and cost for documentary compliance following the introduction of a special vehicle DB2017 Nepal permit requirement. At the same time, Nepal implemented the ASYCUDA World data management system, which expedited the customs clearance process. India made exporting and importing easier by launching Customs Electronic DB2017 India Commerce Interchange Gateway portal and simplifying border and documentary compliance procedures. This reform applies to both New Delhi and Mumbai. Afghanistan made exporting and importing easier by enhancing the usage of DB2017 Afghanistan different modules of the ASYCUDA World customs processing system. Page 67   Pakistan made trading across borders easier by introducing a fully automated, India made exporting and importing easier by launching Customs Electronic Doing DB2017Business 2018 India SOUTH ASIA (SA) Commerce Interchange Gateway portal and simplifying border and documentary compliance procedures. This reform applies to both New Delhi and Mumbai. Afghanistan made exporting and importing easier by enhancing the usage of DB2017 Afghanistan different modules of the ASYCUDA World customs processing system. Pakistan made trading across borders easier by introducing a fully automated, computerized system (the Web-Based One Customs system) for the submission DB2015 Pakistan and processing of export and import documents. This reform applies to both Lahore and Karachi. Bangladesh made trading across borders easier by introducing a fully automated, computerized customs data management system, ASYCUDA (Automated DB2015 Bangladesh System for Customs Data) World. This reform applies to both Chittagong and Dhaka. Sri Lanka made trading across borders easier by introducing an electronic DB2014 Sri Lanka payment system for port services. Sri Lanka reduced the time to export by implementing the ASYCUDA World DB2013 Sri Lanka electronic data interchange system. Pakistan reduced the time to export by improving electronic communication DB2011 Pakistan between the Karachi Port authorities and the private terminals, which have also boosted efficiency by introducing new equipment. Enforcing Contracts DB Year Economy Reform Bhutan made enforcing contracts easier by creating a dedicated bench to resolve DB2018 Bhutan commercial cases. India made enforcing contracts easier by introducing the National Judicial Data DB2018 India Grid, which makes it possible to generate case measurement reports on local courts. This reform applies to both Delhi and Mumbai. India made enforcing contracts easier by creating dedicated divisions to resolve DB2017 India commercial cases. This reform applies to both Mumbai and Delhi. Nepal improved oversight and monitoring in the court, speeding up the process DB2012 Nepal for filing claims. Resolving Insolvency DB Year Economy Reform India made resolving insolvency easier by adopting a new insolvency and bankruptcy code that introduced a reorganization procedure for corporate DB2018 India debtors and facilitated continuation of the debtor’s business during insolvency proceedings. This reform applies to both Delhi and Mumbai. Page 68   bankruptcy code that introduced a reorganization procedure for corporate DB2018 India Doing Business 2018 SOUTH ASIA (SA) debtors and facilitated continuation of the debtor’s business during insolvency proceedings. This reform applies to both Delhi and Mumbai. Page 69