The Washington DC-based Heritage Foundation recently published a report pertaining to the economic freedom around the globe, wherein Pakistan, albeit being quite low in ranking, beat India in what is its second victory against the West-side neighbour. The country earlier triumphed over India in terms of equity market performance.
The Index, which is published annually, measures “the principles of economic freedom that have fueled this monumental progress” and gauges “advancement in economic freedom, prosperity, and opportunity and promote[s] these ideas in their homes, schools, and communities,” according to the Heritage Foundation website.
Heritage Foundation says that the Index “covers 12 freedoms – from property rights to financial freedom – in 186 countries.”
Source: Heritage Foundation website
These elements are categorised in 4 main headings: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets.
This means that in societies that are labeled economically free, the state does not hamper or hinder any transactions related to capital, consumer goods, and labour.