ISLAMABAD — Pakistan scored 5.95 out of 10 in economic freedom and fell 9 places to 142 out of 165 countries, according to the Fraser Institute’s 2021 World Economic Freedom Index.
The Vancouver-based think tank’s report showed the South Asian country scored 5.95 out of 10 on economic freedom and placed in the bottom quartile.
Experts said an illustration depicts that Pakistan is not economically free. The country has been on a downward trend since 2016 and was ranked 133rd last year.
The country scored 3.6 out of 10 in the legal and property rights category, 5.7 in freedom to trade internationally, and 6.0 in regulation. It scored 6.9 in credit market regulation, 5.1 in labor market regulation, and 6.2 in business regulation.
“Due to higher taxes and increased regulation in Pakistan, people are less economically free, which means slower economic growth and less investment in the country,” said Fred McMahon, chair of Dr. Michael A Walker research on economic freedom at the Fraser Institute.
In contrast, Hong Kong tops the list, followed by Singapore, New Zealand, Switzerland, Georgia, United States, Ireland, Lithuania, Australia and Denmark. .
India is ranked 108th, Brazil 109th, Japan 18th, Germany 22nd, Italy 47th, France 53rd, Mexico 75th, Russia 100th and China 116th.
The report is based on several indicators, including regulation, freedom to trade internationally, size of government, property rights, government spending and taxation.
He highlighted the capacity of individuals to make their own economic decisions by analyzing the policies and institutions of 165 countries and territories.