Amidst recent terror attacks in the country spreading a new wave of fear and insecurity amongst the citizens, the new Economic Freedom report published by the Heritage Foundation came as a pleasant surprise for the people of Pakistan. As per the new report, “Pakistan is getting ahead of India, again” in another indicator, economic freedom ranking.
Forbes recently cited the Economic Freedom report, which measures important factors such as trade freedom, business freedom, investment freedom, and the degree of property rights protection in 186 countries.
Pakistan acquired 141st position, two notches above India at 143rd , according to the same report. Also, despite the fact that both nations are shown at the bottom of the list, the report mentions that Pakistan has consistently been outshining India, attracting the attention of quite many investors of the equity market.
Bloomberg also recently published an article mentioning that the country’s stock market is making huge strides and has outperformed the equity market of India since 2000. It also mentioned that over the past 16 years, the MSCI index of the country has soared up to over 14% in dollar terms on a compounded annual growth basis. In contrast, MSCI index of India surged only 8.39% annually during the same time frame.
Moreover, Forbes published an article in September 2016, which mentions that Pakistan is ahead, keeping in mind that it is a frontier economy and not an emerging market. Therefore, it is less exposed to global uncertainties compared to its neighboring nations like India and China.
The performance of both the countries in exchange traded funds (ETFs) also portrays a major difference of almost 15%. The country’s stock market has been making huge strides, considering the fact how it crossed the 50,000- point mark by the end of January 2017. Also, the country registered a growth of 46% in last fiscal year, which is significantly higher than other peer markets in South Asia.
Analysts believe that the concerned authorities, like Ministry of Finance and Planning Commission, are making efforts to allow business owners and private ventures to take more control to push advancement. Nevertheless, it is safe to say that it is a small but an important win for the country.