Pakistan scores low in Global Economic Freedom 2021 report

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ISLAMABAD: The Fraser Institute’s annual report on World Economic Freedom 2021 showed that Pakistan scored 5.95 out of 10 in terms of economic freedom and was in the bottom quartile, an illustration of the fact that the country was not economically free.

This year, Pakistan ranked 142nd based on 2019 data, the most recent comprehensive data.

The country has shown a downward trend since 2016. Last year, Pakistan ranked 133rd with a score of 6.07, according to the report.

Fred McMahon, Dr Michael A Walker Research Chair in Economic Freedom at the Fraser Institute, said: “Due to rising taxes and increased regulation in Pakistan, people are less economically free, which means economic growth. slower and less investment in the country.

PRIME Institute Executive Director Ali Salman said: “Pakistan is not economically free.

It’s not a secret. There is a possible relationship between our economic constraints and the restrictions we place on our individuals and businesses. Fraser’s report highlights some of these restrictions.

The report, which was first launched in 1996, measures economic freedom – the ability of individuals to make their own economic decisions – by analyzing the policies and institutions of 165 countries and territories. Indicators include regulation, freedom to trade internationally, size of government, property rights, government spending, and taxation.

People living in countries with a high level of economic freedom enjoy greater prosperity, more political and civil freedoms, and longer lives.

For example, countries in the top quartile of economic freedom had an average GDP per capita of $ 50,619 in 2019, compared to $ 5,911 for countries in the bottom quartile and $ 1,284 for Pakistan.

And the poverty rates were lower. In the top quartile, 0.9 percent of the population experienced extreme poverty ($ 1.90 per day) compared to 34.1 percent in the bottom quartile.

Finally, life expectancy is 81.1 years in the top quartile of countries against 65.9 years in the bottom quartile and 67 years in Pakistan.

Pakistan has achieved physical security by investing in nuclear capacity. We need economic security by investing in our people and our institutions and by divesting the state from areas where it is not needed. This is the essence of economic freedom.

The Fraser Institute produces the annual Economic Freedom of the world report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 countries and territories, including the PRIME Institute in Pakistan. It is the first global measure of economic freedom.


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