Pakistan’s global competitiveness ranking has fallen by a further six notches: the country is now ranked among the bottom 20 of the 144 economies surveyed, according to the World Economic Forum Global Competitiveness Report 2012-2013.
Countries including Uganda, Ghana and Ethiopia; and regional peers like Sri Lanka (ranked 68), Bangladesh and India (ranked 59); enjoy a higher rating than Pakistan. Pakistan, meanwhile, is placed at number 124 in a list of 144.
For the ranking, the World Economic Forum ranks countries on more than 100 economic indicators, and compares 144 countries. According to the Global Competitiveness Report, Pakistan lacks a long-term view of competitiveness. High levels of corruption and poor governance are some additional factors slowing down Pakistan’s economic growth. On indicators likes public trust on politicians, irregular payments and bribes, favouritism in government decision making, wastefulness of government spending, business costs of terrorism, and business costs of crimes and violence, the country has been ranked among the worst.
On the index of business costs of terrorism, Pakistan scored the 143rd position. However, on the judicial independence index, Pakistan came in at a healthy 57. On the macroeconomic environment indicator, the country was clubbed with the bottom six countries in the index – and ranked at 139. On budget balancing, the country has been ranked at 125, on gross national savings 107, on the inflation index at 132, and on country credit rating, it has been ranked at 116 among the 144 nations.
The WEF gauged the performance of the country on the basis of 12 broad pillars. Pakistan’s position on the 12 pillars is: on institutions 115, infrastructure 116, macroeconomic environment 139, health and primary education 117, higher education and training 124, goods market efficiency 97, labour market efficiency 130, financial market development 73, technological readiness 118, market size 30, business sophistication 78, and innovation 77.
“Pakistan has lost its competitive advantage on almost all the pillars of the competitiveness index, except for in health, primary education and labour market efficiency,” remarked Amir Jahangir, CEO of Mishal Pakistan – country partner of the Center of Global Competitiveness and Performance at the World Economic Forum.
The Pakistani business community identifies corruption as the most problematic factor for doing business in the country. The report indicates that Pakistan has failed to come up with effective regulations on intellectual property protection, where the country lost its position at 93 and slipped to 108 from 2011 to 2012.
Law and order problems have been a serious threat to economic activities; with the war on terror and targeted killings impacting business throughout the year. This reflects in the ranking, as the reliability of police service indicator has plunged to 127 in the current year, as compared to 116 in the previous one.
All is not bad, though. Pakistan has also progressed in some areas, such as in government regulation, where it improved from 76 in 2011, to 62 this year. Similarly, transparency in government policy making has also improved from 119 to 109.
The economy has shown flexibility in hiring and firing practices, and improved in the index from 33 last year to 21 this year. The pay and productivity index has also shown gains, wherein Pakistan has improved 13 points and now ranks at 73.
The report also indicates significant improvements on the performance of the Securities and Exchange Commission: Pakistan has improved on regulation of securities exchanges and is now ranked at 55, as compared to 70 last year.
Published in The Express Tribune, September 6th, 2012.
COMMENTS (21)
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America will make a comeback when it comes to competitiveness. However, it will take We the consumer to make some changes. We must stop buying crap from China and start investing in manufacturers that produce products here in the USA Search and find Made in USA products when shopping, ask retailers to carry more made in USA products, encourage family and friends to buy made in the USA as well. When enough of us do this we can create jobs and improve the economy of the Untied States.
Now India must not sign any agreements with Pakistan as deals are made between equals. India at 59 and Pakistan at 124 are no match. Oh yes, India can as a much more developed power can give alms to its poorer and unequal neighbor. Its written in our faith that we have to help our starving neighbor and India will sure will help Pakistan. The famous saying is true "UPAR SHERWANI, ANDAR PARESHANI".
@Adnan: Yawn is what letting you not get up from your deep slumber. Wakeup before Pakistan reaches the mark of 144.
Not surpirsed, last year it was ranked 120 and this year 124 and few years it will be 144.
Rankings of some south asian countries:
India : 59 Srilanka : 68 Bangladesh : 118
Uganda :123 Pakistan :124 Nepal :125
Good, now Pakistan is competing with Uganda and Nepal.
@vasan: You Indians are obsessed with this theory- time to think outside of your little box and come up with something new (Yawn)....
hmm thats rock bottom. @ Riaz Khan A request please do give a hint when you comment sarcastically, some people take it seriously
Havent heard yet that this is yet another conspiracy to malign the land of the pure. Conspiracy by the famous triplet RAW,MOSSAD and CIA ofcourse, Riaz Khan, you came close.
We are the most competitive nation on this planet! It's RAW+MOSSAD Propaganda against Ummah & Pakistan
@Mard-e-Haq:
:)
Good one.
Islam is actually being followed by the humane section of the Western hemisphere.
Here we have tribal culture well rooted in IGNORANCE ie jihaliya
Pakistan still upholds Islam. Isn't that enough for the population?
@Cool Dude: You mean the possibility of MFN status being granted to India by this year end. Pakistan is yet to grant MFN to India while India granted MFN to Pakistan way back in 1996.
@Cool Dude Have u come across the thing like MFN status granted to India by Pakistan?
No I havent. Have you?
I have only come across **announcements** to grant MFN status to India
Do these statistics surprise anyone? I certainly don't think so. This Government has been the most corrupt, inept and incompetent in the history of Pakistan!
Another Milestone achieved under our DEMOCRATIC GOVT.
Corruption & worst law enforcement destroying everything
@Cool Dude: "@Gratgy: Have u come across the thing like MFN status granted to India by Pakistan?"
Buddyall countries who are member of WTO are supposed o automatically and withouyt exception grant MFN status to all other member countries of WTO.India granted this to Pakistan in 1996. Pakistan SAID it would grant this to India but has so far not done so. IT manages to confuse Pakistanis by pointing to 'non-tarriff-barriers' in India. The fact is that those barriers are across the board for all countries and not Pakistan specific. Thus India IS WTO compliant and has been for 16 years. Pakistan continues to be non-compliant with WTO requirements and it is Indian decency that they have not been dragged to WTO on this issue.
@Gratgy: Have u come across the thing like MFN status granted to India by Pakistan?
How can Pakistan be competitive when it asks for concessions for trade from all other countries. It cannot even compete in its own market and blocks access to India while allowing China to destroy its local economy
this country has lost its meaning, its future. Why not sell this out as another province of US or China? Anyways, all decisions here are controlled in beijing and washington, and they control 100% of economy too. If we are a client subservient state of US, China, why not make it official? atleast our ranking will improve.