The deteriorating macroeconomic conditions, particularly the ministry of finance’s poor budget management pulled the country down. ILLUSTRATION: JAMAL KHURSHID
Pakistan has been clubbed among the bottom 15 nations out of 148 surveyed for competitiveness, slipping down to number 133– nine notches below last year’s ranking.
Rampant corruption, the cost of terrorism, crime and violence greatly affected the country’s global standing. The deteriorating macroeconomic conditions, particularly the ministry of finance’s poor budget management pulled the country down.
According to the Global Competiveness Index (GCI) report of 2013-14 by World Economic Forum (WEF), Pakistan was ranked at 133 out of 148 nations. Last year its position was 124. The report has included views from more than 14,000 business leaders globally to measure each country’s competitiveness. The GCI places Switzerland at the top of the ranking for the fifth year running. Singapore and Finland remained in second and third place respectively.
The gradual slipping of Pakistan’s rank shows the weakening of its institutions and the capacity of the economy to create space for innovation, said Amir Jahangir, chief executive officer of Mishal Pakistan, a partner organisation of the WEF.
Areas for public and private partnerships to improve competitiveness are also diminishing as well. Jahangir said Pakistan needs to focus on competitiveness or the economy may slide into a dangerous downward spiral.
More than 200 business leaders in Pakistan identified corruption as the most problematic factor for doing business, followed by policy instability, access to financing, inadequate supply of infrastructure, inefficient government bureaucracy and high inflation.
Pakistan has lost ground on almost all indicators. The biggest impact has been due to deteriorating law and order as a result Pakistan’s fight in the war on terror, where Pakistan ranked among the bottom 10 in the world. On business cost of terrorism the country stood at 144, business cost of crime and violence 138, and organised crime 141, among 148 countries. Pakistan showed some improvement on judicial independence.
The country showed poor performance on the government’s use of public funds, falling from 76 in 2012 to 103 in 2013. Wastefulness in government spending has also increased and the rankings have dropped from 96 last year to 116 this year. Similarly, on government regulation, Pakistan fell from 62 in 2012 to 82 in 2013, highlighting the fallouts of Statutory Regulatory Orders.
Even private businesses could not show progress, as the ranking on the efficacy of corporate boards fell to 123 in 2013 from 111 in 2012. However, equity market regulators showed some progress and the country performed well on the index for protecting minority shareholders’ interest. The overall infrastructure in the country has deteriorated from last year.
Pakistan showed improvements in tertiary education enrolment, where it moved to 121 this year from 125 in the last year. While the quality of Math and Science education dropped to 104 in 2013 from 88 in 2012, the extent of staff training has gone from bad to worst this year falling to 128.
The intensity of local competition has improved ranking from 85 to 79 this year, in addition to improving prevalence of trade barriers from 114 from 92 this year. However the country was successful in improving rules and regulations to encourage, thus improving the business impact of rules on FDI, and was ranked at 75 this year compared to 96 last year.
Pakistan showed significant gains in the technical readiness criteria with the availability of latest technologies, ranking at 79, and firm-level technology absorption ranking at 81. Pakistan also showed improvements on capacity for innovation by improving 11 points and securing regional competitiveness advantage at 49.
Pakistan’s ranking in university-industry collaboration for research and development declined from 81 to 98, making industry depend on replicating instead of creating new products and services.
Published in The Express Tribune, September 5th, 2013.
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COMMENTS (21)
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What is wilth all the scorn people?
@siddiqui Ji : . Thanks to Alann Ji I give below the following 2013-2014 Report : . CORRECTION - Here is the “Latest” of the “Latest” from the World Economic Forum : . The Global Competitiveness Report 2013–2014 : . http://www3.weforum.org/docs/WEFGlobalCompetitivenessReport2013-14.pdf . Please compare India with Pakistan as per the 104 Tables and then form a “Judgement”! . Cheers
@siddiqui: Agreed. let the trollers troll. don't even bother!!
siddiqui: "This ranking is flawed. The World Bank and International finance corporation placed Pakistan at 107 rank, ahead of India’s 132 and Bangladesh at 129. One report can not be substantiated. http://www.doingbusiness.org/rankings"
1) Re-read this article; 2) Re-read your own link; 3) Google the term "Ease of Doing Business"; 4) Think.
Maybe you will find out where you went wrong.
Here is another link to IDA International which places Pakistan at a position of 107, ahead of India and Bangladesh. Though Pakistan economy is a bit down, but its not down and out. http://en.wikipedia.org/wiki/Easeofdoingbusinessindex
This ranking is flawed. The World Bank and International finance corporation placed Pakistan at 107 rank, ahead of India's 132 and Bangladesh at 129. One report can not be substantiated. http://www.doingbusiness.org/rankings
Who cares if we are the most corrupt country in the world, people and media are happy in bashing Imran Khan and the news like Jashaid Dasti has joined PTI or not....
I heard that when Tariq invaded Spain , the intellectuals were discussing how many angels could go through the neck of a needle, now same is the case in Pakistan. We are dooming in every sense and intellectuals are discussing what Imran Khan should do and what he doesn't and how he should run PTI and who should join PTI and who should not.
Corruption, Extremism, Terrorism, Inflation, Law and order, dooming economy, dooming social values, intolerance in society and what not but no one cares about such things and no one put the responsibility of these things on the Govt.(Past and recent) but what everyone is after , they are moral policing Imran Khan and PTI...
Trade with india and afghanistan must be improved and promoted to boost pakistani economy and peace.
bring back Musharraf...
Pakistan should stand close to Switzerland since Pakistan has played a significant role to bring them on top by transferings 30 trillion rupees.
This is why we needed Imran Khan to be the PM!
and yet, Zaradari is leaving Presidency as a "satisfied" man (http://bit.ly/14lrUf9)
Pakistan is not a viable state, sooner or later it is going to be a failed state.
This makes sad reading for a country which was once emulated by South Korea Malaysia and Thailand. Now even countries like Bangladesh and Vietnam are doing better. Where lies the difference primarily education which encompasses all and leadership in all its facets. Prime minister this is a wake up call for all. You also had your chance twice in the last twenty years, so stop blaming this situation on others. We are all mortals let us give back for a change to the country that has given so much to us. Let QA be proud of us.
Pakistan is a dump .............. Period
Investors invest based on expected safe return on there money. Decisions are made without consideration for emotions, religion or region. Even Russia some times does not get investors attention due to poor law and order because of acceptance of mafia. If it took ten years for Pakistani economy to go down than it will take more than ten years to bring it back. It takes time to change the culture in the system. Decisions made in Karachi today will show benefits in economy in ten years time. Economy can not be revived on one particular agenda one has to support lots of different programs. In certain countries Foreign Ministry is nothing but economic Ministry, Diplomatic activity equals to economic activity.
A fine analytical resume of the failure of the whole beaurucratic and adminitrative system in the country due to dirty political interference. Should we call it flourshing of democracy at the cost economic dooms. Just turn the page and see what were the statistics before the start of recent democracy - phobia, i.e. during the dictator's tenure from year 2000 to 2008. Now further turn back the pages and see what democracy gave us in the past. We will have to make choice feed ourselves or flourish democrtacy.
To trap the monkeys in the jungle, a hole is drilled at the bottom of a tree where monkeys are known to gather above. The hole just large enough for a monkey to stick its hand in, is filled with nuts that they love to eat. Smelling the nuts from the branches above, the monkey scampers down the tree and plunges its hand into the hole. Feeling the nuts at the back of the hole, it grabs them. Now the Monkey attempts to pull its hand out of the hole but cannot because its balled fist, which is now wrapped around the nuts, is too large to make it through.
The monkey cannot pull its hand out of the hole and at the same time, it will not let loose the nuts. The monkey has trapped itself. All that is required to be free is to let go of the nuts.
This metaphor of the Monkey is used to illustrate the human consciousness, which is trapped in illusion and suffering.
"It is your attachments that causes your suffering." -- Buddha
Pak still reeling from ppp incompetence!
As the Great Frank Zappa sang: "You can't run a country by a book of religion Not by a heap or a lump or a smidgeon of foolish rules of ancient date, designed to make you all feel great while you fold, spindle and mutilate those unbelievers from a neighbouring state............. " Perfect example of the causes of this mess in Pakistan.
Look on the bright side. We are still top in the League of failed states.