Daily Times

Pakistan has slipped by three spots on the global competitiveness index released by the World Economic Forum (WEF), ranking 110 out of 141 countries.

The report has adopted a new methodology for measuring Competitiveness 4.0, by including indices which represents more knowledge and digital-based ecosystems. The Global Competitiveness Index (GCI) 4.0 provides a detailed map of the factors and attributes that drive productivity, growth and human development in the era of the Fourth Industrial Revolution. The 2019 edition covers 141 economies, which account for 99% of the world’s GDP.

On the Competitiveness 4.0, Pakistan has been ranked at 110th among 141 economies, slipping three positions below from last year’s 107. Pakistan has been ranked 107 in institutions as compared to 109 last year. It has been ranked 105 in infrastructure against 93 in 2018. The ICT adoption has slipped to 131 from 127 from a year earlier. With a loss of 13 ranks, the macroeconomic stability at 116 has greatly impacted country’s competitiveness rankings. The health pillars at 115 in 2019 have slipped from 109 the last year. The skills pillar has retained its position as last year at 125. Pakistan has also lost four ranks on the product market pillar with global ranking at 126, but improved its labor market efficiency with one point by securing 120th position among 141 economies. While the financial systems pillar lost 10 ranks and rests at 99 this year, compared to 89 the last year, the country improved its competitiveness advantage by securing an impressive 29th position compared to 31st in 2018. Pakistan showed its best performance on the business dynamism by improving 15 points and securing 52nd position among 141 economies. The country scored 79 on the innovation capability pillar compared to 75 in 2018.

In South Asia, India, in 68th position, lost ground in the rankings despite a relatively stable score, mostly due to faster improvements of several countries previously ranked lower. It is followed by Sri Lanka (the most improved country in the region at 84th), Bangladesh (105th), Nepal (108th) and Pakistan (110th).

The Global Competitiveness Index 4.0 provides a compass for thriving in the new economy of the Fourth Industrial Revolution. In the present context of economic uncertainty, trade tensions, and social and environmental challenges, it is even more critical that policymakers use the comprehensive tools of competitiveness to put the world economy on a path of growing productivity, inclusion and sustainability. “The report shows this win-win combination is possible, but we will need bolder, visionary leadership and multi-stakeholder collaboration to achieve it,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

“The greatest concern today is the reduced ability of governments and central banks to use monetary policy to stimulate economic growth. This makes it all the more important that competitiveness enhancing polices are adopted that are able to boost productivity, encourage social mobility and reduce income inequality,” said Saadia Zahidi, Head of Centre for New Economy and Society at the World Economic Forum.

Singapore is the world’s most competitive economy in 2019, overtaking the United States, which falls to second place. Hong Kong SAR (3rd), Netherlands (4th) and Switzerland (5th) round up the top five. The average across the 141 economies covered is 61 points, almost 40 points to the frontier. Some of this year’s better performers in the GCI appear to be benefiting from the trade feud through trade diversion, including Singapore (1st) and Vietnam (67th), the most improved country in this year’s index.