WHAT THE RESOLVING INSOLVENCY

INDICATORS MEASURE Time required to recover debt (years) Measured in calendar years Appeals and requests for extension are included

 Cost required to recover debt (% of debtors estate) Measured as percentage of estate value Court fees Fees of insolvency administrators Lawyers fees Assessors and auctioneers fees Other related fees s

 Recovery rate for creditors (cents on the dollar) Measures the cents on the dollar recovered by creditors Present value of debt recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Outcome for the business (survival or not) affects the maximum value that can be recovered

 What are the changes over time? While the most recent Doing Business data reflect the efficiency of insolvency proceedings in Pakistan today, data over time show where the efficiency has changedand where it has not (table 11.1). That can help identify where the potential for improvement is greatest

 RESOLVING INSOLVENCY Equally helpful may be the benchmarks provided by the economies that today have the best performance regionally or globally on the time or cost of insolvency proceedings or on the recovery rate (figure 11.2). These economies may provide a model for Pakistan on ways to improve the efficiency of insolvency proceedings. And changes in regional averages can show where Pakistan is keeping upand where it is falling behind.

 The Doing Business data are collected in a standardized way. To start, the Doing Business team, with academic advisers, designs a questionnaire. The questionnaire uses a simple business case to ensure comparability across economies and over timewith assumptions about the legal form of the business, its size, its location and the nature of its operations. Questionnaires are administered through more than 9,028 local experts, including lawyers, business consultants, accountants, freight forwarders, government officials and other professionals routinely administering or advising on legal and regulatory requirements. These experts have several rounds of interaction with the Doing Business team, involving conference calls, written correspondence and visits by the team. For Doing Business 2012 team members visited 40 economies to verify data and recruit respondents. The data from questionnaires are subjected to numerous rounds of verification, leading to revisions or expansions of the information collected