*LAHORE: World Economic Freedom report has surfaced and Pakistan has notperformed well even this year. *
Pakistan has achieved an economic freedom score of 54.4 in the “EconomicFreedom Index” 2018 conducted by the Heritage Foundation.
Pakistan’s economy was ranked the 131stfreest in the 2018 index and itsoverall score rose by 1.6 points with a major improvement in fiscal healthoffsetting falls in government integrity and business freedom.
In the Asia-Pacific region, Pakistan’s economy was ranked at 31st amongstforty-three countries. The overall score of 54.4 remains below the worldand regional averages which stood at 61.1 and 61.0 respectively.
In the last few years, some elements of economic freedom have proceededtimidly in Pakistan according to the “Economic Freedom Index” but years ofinternal political rows and low levels of foreign investment contributed tounpredictable growth and underdevelopment.
The immense meddling of the state in the economic affairs of the countryand the inefficient but pre-eminent regulatory agencies discourage privatebusiness formation, the report said.
It added that a lack of access to bank credit threatened entrepreneurshipand innovation had slowed down due to the isolation of the financial sectorfrom the outside world.
Also, the “Economic Freedom Index” 2018 report said the judicial system wasseverely affected by a serious backlog and poor security and corruptionkeeps on tarnishing the civil service and judiciary.
In the rule of law section, property rights score stood at 36.0, down 0.4from the previous year. Judicial effectiveness score was 34.0, down 0.1 andgovernment integrity at 27.3, recording a fall of 3.2.
The report said “Pakistan’s legal system provides incomplete protection forthe acquisition and disposition of property rights. Although technicallyindependent, the justice system is marred by such endemic problems ascorruption, intimidation, a large backlog of cases, and insecurity.Corruption is pervasive. Many public officials face allegations of bribery,extortion, cronyism, nepotism, patronage, graft, and embezzlement.”
In the government size section, tax burden recorded a score of 78.5, down0.4 from the previous year. Government spending stood at 88.2, recording anincrease of 0.9 and fiscal health saw the biggest up of 23.2 points,touching 54.0.
The regulatory efficiency section saw a score of 55.3 in the businessfreedom benchmark, down 5.9 points. Labour freedom benchmark saw a score of40.6 points, up 2.8 points and monetary freedom benchmark posted a score of40.6, registering a rise of 2.9 points.
The report highlighted business freedom was lagging in the country, withentrepreneurs facing major licensing and other bureaucratic hiccups. Also,legal protections for laborers was cited as very weak.
In the open market section of the report, the country scored 65.9 in tradefreedom benchmark, registering a 1.3-point fall from the previous year,with investment freedom benchmark remaining unchanged at 55.0. Financialfreedom benchmark score stood unchanged at 40.0