Pakistan ends last in global competitiveness in South Asia: WEF

Corruption, crime, tax rates, access to finance and political instability are among major factors impeding business

Pakistan has been ranked at 122, last amongst its South Asian neighbours, in the Global Competitiveness Index (GCI) by the World Economic Forum (WEF).

The forum has ranked India at 39th spot, followed by Sri Lanka (71), Bhutan (97), Nepal (98) and Bangladesh at (106) at the GCI, reports the Business Reporter, a financial daily of Pakistan.

The Global Competitiveness Index (GCI), introduced by the WEF in 2005, is calculated by drawing together country-level data covering 12 categories that collectively make up a comprehensive picture of a country's competitiveness.

Competetiveness is defined as the set of institutions, policies and factors which determine the level of productivity of a country.

The 12 categories, or the pillars of competitiveness are-institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

Among the 114 global indicators of competition, Pakistan showed an improvement in 54 key indices this year, while relfecting a slump on 50 other indices. It, however, maintained its position on 10 indices.

According to the report, Pakistan has shown recovery on the economic front, where the country has been successful in improving its macroeconomic framework to improve its competitive capacities in the global market.

Pakistan improved moved up from 119 last year to 111 during 2016-17 on the institutions pillars, while infrastructure improved only one point and stands at 116 this year.

Corruption, followed by crime and theft, tax rates, access to finance and politcal instability and coups, have been identified as major factors impeding business in Pakistan.

The report also indicated that a ten-year delay in the opening of the country's economy posed a risk to its ability to grow and innovate.