Pakistan’s competitiveness has surged by seven ranks to 115th, according to the latest Global Competitiveness Report (2017-18) of the World Economic Forum. Therefore, it wouldn’t be wrong to say that some macroeconomic indicators of the country have improved during the past year. In the 2016-17 report, Pakistan’s competitiveness rose by four places.
As per the report, this year among 114 global competitiveness indicators, Pakistan has demonstrated improvements on 82 key indices, whereas on 20 indices the country lost its previous spot. The report also states that corruption is the biggest problem in Pakistan when it comes to doing business, followed by tax rates, political instability, crime and thefts. Adding to that, almost similar problems were highlighted in last year’s report. This very fact depicts that Pakistan has failed to introduce any meaningful reforms to solve the corruption problem.
Many analysts believe that corruption is the biggest hurdle for the country as it is adversely impacting the country’s economy and hampering foreign investors’ confidence. On the Institutions pillar, Pakistan improved 21 ranks and stands at 90 from 111 last year. Infrastructure improved from 116 to 110, whereas on the Macroeconomic Stability pillar Pakistan improved 10 ranks and stands at 106.
Retaining the regional competitiveness edge Pakistan ranks at 28 on the pillar of Market Size. Also, demonstrating improvement on Business Sophistication the rank changed from 95 last year to 81 this year, while on the Innovation pillar the country climbed 15 points and is currently at 60th rank on the global competitiveness index.
Chief Executive Officer of Mishal Pakistan, the Country Partner Institute of the Global Competitiveness and Benchmarking Network of the World Economic Forum Amir Jahangir, said, “Pakistan is classified as a factor driven economy, which primarily depends on improving its institutions, infrastructure, macroeconomic stability, health and primary education indicators.
Pakistan has managed to resist the global crisis and has shown resilience for economic recovery. Globally countries that are competitive have shown resilience to crisis. However, the reforms agenda still remains an unfinished business.”