Islamabad: The Economic Freedom Index 2019 – compiled by the Washington-based Heritage Foundation – has notified Pakistan’s ascent by 0.6 points from its 2018 position in terms of the scale’s overall economic freedom measures, according to news sources. The thinks tank has given the country a score of 55.0 (on a 0-100 scale), ranking Pakistan as the 131st freest economy out of a total 186 list entries.
The report associated this improved economic freedom to improved judicial effectiveness and property rights implementation; offsetting the country’s parallel declines in monetary freedom and fiscal health. Pakistan achieved the same index ranking in 2018 with a score of 54.4 – with an overall increase of 1.6 points from its 2017 position.
The Economic Freedom Index measures a country’s economic freedom by analysing its rule of law, regulatory effectiveness, government size, and open market access profiles. The research data compiled for its tabulation is later shared with investors, financiers, businesspersons, policymakers, academics, journalists, students, and teachers.
This latest Heritage Foundation
report approximates Pakistan’s population to 197.3 million people and estimates
its gross domestic product based on purchasing power parity (GDP-PPP) at USD
1.1 trillion (with a 5.3% growth and a 4.3% 5-year compound annual growth
reading). Further, it records the country’s per capita income at USD 5,358 and
inflation at 4.1%; while calculating Pakistan’s Foreign Direct Investment (FDI)
inflow at USD 2.8 billion.
The report further notes that Pakistan’s tax regulations are still complex despite the government’s implemented reforms; although some aspects of economic freedom have shown growth in recent years. It goes on to comment how decades of mismanaged governance and low foreign investments have caused underdevelopment and erratic growth.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
