2. Assessing National Competitiveness The Global Competitiveness Report September Amir Jahangir Chief Executive Officer Mishal Pakistan A Country Partner Institute of the Global Competitiveness and Benchmarking Network, World Economic Forum

3. Credibility Lab @ Mishal:
Mishal Pakistan through its Credibility Lab’s initiative is working with policy makers, researchers, academia media and industry professionals on creating new industry benchmarks.
The Credibility Lab undertakes the following initiatives in Pakistan:
As a Country Partner Institute of the World Economic Forum, works on the following:
The Global Competitiveness Report
The Travel and Tourism Competitiveness Report
The Global Enabling Trade Report
The Global Gender Gap Report
The Human Capital Report
The Financial Development Index Report
The Global Information Technology Report
The Global Risks Reports
EOS serves as the basis for Corruption Perception Index by TI
The AGAHI Awards – First Journalism Awards in Pakistan – Framework for Ethical Journalism
Media Development Trust
Trust Gold Medal Recognition for Public Interest Communication
Ethical Audit of News Media (Framework)
Media Credibility Index

4. “ ” The Global Competitiveness Index (GCI)
The set of institutions, policies, and factors that determine the level of productivity of a country.
The level of productivity,
in turn, sets the level of prosperity that can be
earned by an economy. ”

5. The Global Competitiveness Index
The Global Competitiveness Index (GCI)
Basic requirements
1.Institutions
2.Infrastructure
3.Macroeconomic environment
4.Health and primary education
Efficiency enhancers
5.Higher education and training
6. Goods market efficiency
7. Labor market efficiency
8. Financial market development
9. Technological readiness
10. Market size
Innovation and sophistication factors
11. Business sophistication
12. Innovation
The Global Competitiveness Index

6. The Global Competitiveness Report 2016-2017

7. The Global Competitiveness Report 2016-2017
Country Coverage
Following a year of non-inclusion, Tajikistan is reinstated in the 2014 edition, although no new economy is added this year. In addition, the Survey was not completed to minimum requirements in Benin, Brunei Darussalam, or Liberia, and therefore those countries could not be included this year. Furthermore, Bosnia and Herzegovina and Ecuador are not included in this edition of the Report because of data quality concernsFollowing a year of non-inclusion, Tajikistan is reinstated in the 2014 edition, although no new economy is added this year. In addition, the Survey was not completed to minimum requirements in Benin, Brunei Darussalam, or Liberia, and therefore those countries could not be included this year. Furthermore, Bosnia and Herzegovina and Ecuador are not included in this edition of the Report because of data quality concerns

8. Top 20 Bottom 20 The Global Competitiveness Report 2016-2017
09/11/2018

9. The Global Competitiveness Report 2016-2017
South Asia
South Asia continues its upward trend as competitiveness improves in most
countries in the region. India is the best performer, climbing to 39th from 55th last year. Over the past decade, the subcontinent has focused on
improving overall health and primary education levels and upgrading available infrastructure, areas of particular importance given the resource-driven nature of its economy. However, the latter remains the second weakest spot in the region, just after technological readiness.
09/11/2018

10. The Global Competitiveness Report 2016-2017
Improving Pakistan’s Competitiveness
Sustained Economic Growth
Poverty Reduction
Improved Competitiveness
Globalization is a reality that countries
can no longer escape
Competitiveness is the only way to benefit from globalization and not become a victim

11. The Global Competitiveness Report 2016-2017
Sustained Economic Growth
Poverty Reduction
Improved Competitiveness
The World Economic Forum’s Global Competitiveness Report is the Most Influential Ranking of a Country’s Competitiveness and it Effects Pakistan's Image in the World Among Business, Government and Financial Leaders
Understanding and Monitoring the Rankings is Important
Improved Competitiveness Leads to Sustained Economic Growth Which Has Proven to Be Effective in Poverty Reduction and Employment Generation

12. The Global Competitiveness Report 2016-2017
TOTAL COUNTRIES: 138
Global Competitiveness Index (GCI)
Basic Requirements (60%)
Institutions
Infrastructure
Macroeconomic Stability
Health and Primary Education
Efficiency Enhancers (35%)
5. Higher Education and Training
6. Goods Market Efficiency
7. Labor Market Efficiency
8. Financial Market Sophistication
9. Technological Readiness
10. Market Size
Innovation and Sophistication (5%)
11. Business Sophistication
12. Innovation
Pakistan Sri Lanka India Bangladesh

13. The Global Competitiveness Report 2016-2017
2014/ / /17 Change
Basic Requirements (60%)
1. Institutions
Infrastructure
Macroeconomic Stability
Health and Primary Education
Efficiency Enhancers (35%)
5. Higher Education and Training
6. Goods Market Efficiency
7. Labor Market Efficiency
8. Financial Market Sophistication
9. Technological Readiness
10. Market Size
Innovation and Sophistication (5%)
11. Business Sophistication
12. Innovation

14. The Global Competitiveness Report 2016-2017
Executive Opinion Survey for = Total Sample Size - Global: 14, Pakistan: 350
Period Period 2
Survey edition No. of respondents Weight (%)* Survey edition No. of respondents Weight (%)
Detail of WEF’s Executive Opinion Survey for the Year

15. Areas where Pakistan has shown improvements
The Global Competitiveness Report
Areas where Pakistan has shown improvements
Indices
2015/16
2016/17
Intellectual Property Protection
112
109 +3
Diversion of Public Funds 85 79 +6
Public trust in Politicians 99
+14
Irregular Payment and Bribes
116
110
Favoritism in decisions of Government Officials 75 73 +2
Wastefulness of Government Spending
102 98 +4
Burden of Government Regulation 86
+11
Business Costs of Crime and Violence
130
125 +5
Organized Crime
132

16. Areas where Pakistan has shown improvements
The Global Competitiveness Report
Areas where Pakistan has shown improvements
Indices
2015/16
2016/17
Reliability of Police Services
126
118 +8
Ethical Behavior of Firms 98 90
Business Costs of Terrorism
139
134 +5
Protection of Minority Shareholders Interests
112
109 +3
Transparency of Government Policy Making
125
108
+17
Efficiency of Legal Framework in Challenging Regs.
101
100 +1
Quality of Railroad Infrastructure 72 60
+12
Quality of overall infrastructure 93
Quality of railroad Infrastructure 53 +7

17. Areas where Pakistan has shown improvements
The Global Competitiveness Report
Areas where Pakistan has shown improvements
Indices
2015/16
2016/17
Quality of Electricity Supply
129
121 +8
Available Airline Seat Km/week, million 48 46 +2
Gross National Savings, % GDP
115
107
Government Debt, % GDP
101 95 +6
Country Credit Rating pop*
114 +1
Inflation, annual % change
127 93
+34
Malaria Incidents, Cases/100,000 pop* 40
Business Impact of Malaria 49
Infant Mortality, deaths/1000 live births
134
131 +3

18. Areas where Pakistan has shown Improvements
The Global Competitiveness Report
Areas where Pakistan has shown Improvements
Indices
2015/16
2016/17
Primary Education enrollment, net % age
134
133 +1
Tuberculosis Cases/100,000 pop*
125
122 +3
Secondary education enrollment rate Gross %age
129
124 +5
Quality of education system 75 71 +4
Extent of Staff Training
120 +2
Agricultural policy costs
103 99
Trade tariff, % duty
137
Total Tax Rate, % Profits 50 48
Business Impact of Rules on FDI
111
106

19. Areas where Pakistan has shown improvements
The Global Competitiveness Report
Areas where Pakistan has shown improvements
Indices
2015/16
2016/17
Extent of Market Dominance
110 97
+13
Effectiveness of Anti Monopoly Policy
106 96
+10
Redundancy costs, weeks of salary
115 +5
Country capacity to attract talent 86
Female Participation in the labor force, ratio to men*
136
134 +2
Reliance on Professional Management
122
119 +3
+14
Venture Capital Availability 78 68
Mobile Broadband subscriptions/100 pop*
125
121 +4

20. Areas where Pakistan has shown improvements
The Global Competitiveness Report
Areas where Pakistan has shown improvements
Indices
2015/16
2016/17
Export %age GDP
137
135 +2
Control of international distribution 62 60
Production process sophistication 86 77 +9
Nature of competitive advantage 99 85
+14
Willingness to delegate Authority
115
114 +1
Company Spending on R&D 88 67
+11
Govt. Procurement of Advanced Tech Products 33
+29
University Industry Collaboration in R&D 95 68
+27
Quality of Scientific Research Institutions
104 87
+17

21. Areas where Pakistan has shown deterioration
The Global Competitiveness Report
Areas where Pakistan has shown deterioration
Indices
2015/16
2016/17
Judicial Independence 82 88 -6
Strength of Investor Protection 21 25 -4
Property Rights
118
122
Efficiency of Legal Framework in settling disputes
108
109 -1
Strength of Auditing and Reporting Standards
117
121
Efficacy of corporate boards
123 -2
Quality of port infrastructure 66 84
-18
Fixed Telephone lines/100 pop*
112 -5
Quality of Air Transport Structure 79 91
-12

22. Areas where Pakistan has shown deterioration
The Global Competitiveness Report
Areas where Pakistan has shown deterioration
Indices
2015/16
2016/17
Mobile Telephone Subscription/100 pop.
124
130 -6
Life Expectancy Years
106
108 -2
Quality of Primary Education
112
115 -3
Business Impact of HIV/AIDS 94 95 -1
Internet Access in Schools
103
105
Quality of Management Schools 70 84
-14
Quality of Math and Science Education 89 98 -9
Local Availability of Specialized Training Services 97
Prevalence of Non Tariff Barriers

23. Areas where Pakistan has shown deterioration
The Global Competitiveness Report
Areas where Pakistan has shown deterioration
Indices
2015/16
2016/17
Prevalence of Foreign Ownership
116
117 -1
Burden of Customs Procedures
111
113 -2
Degree of Customer Orientation
106
114 -8
Intensity of Local Competition 98
118
-20
Effect of Taxation on Incentive to Invest 66 85
-19
No. of Days to Start a Business 94 -4
Imports as a Percentage of GDP
132
133
Cooperation in Labor Employment Relations
131
134 -3
Pay & Productivity 95 97
Flexibility of Wage Determination
120 -6

24. Areas where Pakistan has shown deterioration
The Global Competitiveness Report
Areas where Pakistan has shown deterioration
Indices
2015/16
2016/17
Hiring and Firing Practices 48 63
-15
Country Capacity to Retain Talent 70 78 -8
Financing through local Equity Market 69 73 -4
Soundness of Banks 99
101 -2
Regulation of Securities Exchanges 93
106
-13
Legal Rights Index (0-10) best 97
Financial Services Meeting Business Needs 80
102
-22
Affordability of Financial Services 83 88 -5
Ease of Access to Loans 90
103

25. Areas where Pakistan has shown deterioration
The Global Competitiveness Report
Areas where Pakistan has shown deterioration
Indices
2015/16
2016/17
Availability of Latest Technologies 79 99
-20
Firm Level Technology Absorption 82
114
-28
FDI and Technology Transfer 77 86 -9
Fixed Broadband Internet Subscription/100 pop.
107
110 -3
Foreign market size index 55 59 -4
Local supplier quality 98
111
-13
Extent of marketing
100
Local supplier quantity 63
102
-39

26. Areas where Pakistan has shown deterioration
The Global Competitiveness Report
Areas where Pakistan has shown deterioration
Indices
2015/16
2016/17
State of Cluster Development 68 76 -8
Value Chain Breadth 64 77
-13
Availability of Scientists and Engineers 44 66
-22
PCT patents, application/million pop
109
111 -2

27. Areas where Pakistan has maintained its position
The Global Competitiveness Report
Areas where Pakistan has maintained its position
Indices
2015/16
Quality of Roads 77 -
Government Budget Balance % GDP
106
Mobile Telephone Subscriptions/100 pop.
124
Business Impact of Tuberclusis
104
Tertiary education enrollment, gross %
115
No. of Procedure to Start a Business
116
Effect of Taxation on Incentives to Work 84
Internet Users % of Population
119
Domestic Market Size Index 23
Capacity for Innovation 95

28. Global Rankings of Various Institutions
Intellectual Property Organization
106
117
112
109
Judicial Independence 57 67 82 88
Police Services
127
128
118
AGPR 86 90
121
NHA 73 75 77
Railways 66 72 60 53
CAA 78 92 79 91
NEPRA
126
133
129
HEC
125
115
NAVTEC
102
101 94 97
CCP 71 85 96
Customs 93 87
111
113
SBP 99
SECP 55 51
TDAP X
141
137
135
NAB
139
Not available as yet

29. The Global Competitiveness Report 2016-2017
Public-Private Partnership is the only way to improve Pakistan’s Competitiveness
Goal should be to Involve Public Private Partnerships and Act as a catalyst to:
Improve Competitiveness
Increase Productivity
Enhance prosperity

30. The Way Forward – Steps to be Taken to Improve Competitiveness
National Competitiveness Council
The Annual State of Competitiveness Report
Institutional Effort to Update the Data
Regional Competitiveness Councils
Provincial Competitiveness Reports
Industry Academia Linkages
Get Out of “The Narrative Trap”
Narrative Building Strategy
Inward Looking
Outward Looking

31. Pakistan Made Improvements on number of indices 63 54
The Narrative Trap
2015/ /17
Pakistan Made Improvements on number of indices
Pakistan Deteriorated on number of indices
Pakistan Retained its Position
TOTAL

32. Key Messages

36. Backup Slides

37. Pillar 1 Institutions Improvements 2015-16  2016-17 Weakening
Intellectual Property Protection 109
Diversion of Public Funds  79
Public Trust in Politicians  85
Irregular payment and Bribes 110
Favouritism in decisions of Government Officials  73
Wastefulness of Government Spending  98
Burden of Government Regulation  75
Business Costs of Crime and Violence 125
Organized Crime 130
Reliability of Police Services 118
Ethical Behaviour of Firms  90
Business Costs of Terrorism 134
Protection of Minority Shareholders Interests 109
Transparency of Government Policy Making 108
Efficiency of Legal Framework in Challenging Regs 100
Weakening
Judicial Independence  88
Strength of Investor Protection  25
Property Rights 122
Efficiency of Legal Framework in settling disputes 109
Strength of Auditing and Reporting Standards 121
Efficacy of Corporate Boards 123

38. Pillar 2 Infrastructure
Improvements 
Quality of overall infrastructure  93
Quality of railroad Infrastructure  53
Quality of Electricity Supply 121
Available Airline Seat Km/week, million  46
Quality of roads  77
Weakening
Quality of port infrastructure  84
Fixed Telephone lines/100 pop* 117
Quality of Air transport Structure  91
Mobile Telephone Subscriptions/100 pop 130

39. Pillar 3 Macroeconomic environment
Improvements 
Government budget balance, % GDP 106
Gross National Savings, % GDP 107
Government Debt, % GDP  95
Country Credit Rating pop* 114
Inflation, annual % change  93
Weakening

40. Pillar 4 Health and Primary Education
Improvements 
Malaria Incidents, Cases/100,000 Pop  40
Business Impact of Malaria  48
Business Impact of Tuberculosis 104
Infant mortality, deaths/1,000 live births 131
HIV Prevalence, % adult pop  1
Primary Education enrollment, net % 133
Tuberculosis Cases/100,000 pop* 122
Weakening
Live Expectancy Years 108
Quality of primary education  115
Business Impact of HIV/AIDS  95

41. Pillar 5 Higher Education and Training
Improvements 
Secondary education enrollment rate Gross %age 124
Quality of education system  71
Tertiary Education Enrollment Rate Gross %age 115115
Extent of Staff Training 120
Weakening
Internet Access in Schools 105
Quality of management schools  84
Quality of math and science education  98
Local availability of Specialized Training Services  97

42. Pillar 6 Goods Market Efficiency
Improvements 
No. of procedures required to start a business 116
Agricultural policy costs  99
Trade tariff, % duty 134
Buyer sophistication  86
Total Tax Rate, % Profits  48
Business Impact of Rules on FDI 106
Extent of Market Dominance  97
Effectiveness of Anti Monopoly Policy  96
Weakening
Prevalence of Non Tariff Barriers 112
Prevalence of Foreign Ownership 117
Burden of Customs Procedures 113
Degree of Customer Orientation 114
Intensity of Local Competition 118
Effect of Taxation on Incentive to Invest  85
No. of days to start a business  98
Imports as a percentage of GDP 133

43. Pillar 7 Labor Market Efficiency
Improvements 
Redundancy costs, weeks of salary 110
Country capacity to attract Talent  86
Female Participation in the labor force, ratio to men* 134
Effect of Taxation on Incentives to Work  84
Reliance on Professional Management 119
Weakening
Cooperation in labor employment relations 134
Flexibility of Wage Determination 120
Pay and productivity  97
Hiring and firing practices  63
Country capacity to retain Talent  78

44. Pillar 8 Financial Market Development
Improvements 
Venture Capital Availability 68
Weakening
Financing through local Equity Market  73
Soundness of Banks 101
Regulation of securities exchanges 106
Legal rights index  97
Financial Services meeting Business Needs 102
Affordability of financial services  88
Ease of access to Loans 103

45. Pillar 9 Technological Readiness
Improvements 
Internet Users %age Pop 119
Internet bandwidth, kb/s user 115
Mobile Broadband subscriptions/100 Pop 121
Weakening
Availability of latest technologies  99
Firm Level Technology Absorption 114
FDI and Technology Transfer  86
Fixed Broadband Internet subscription/100 Pop 110

46. Pillar 10 Market Size Improvements 2015-16  2016-17 Weakening
Domestic market size index  23
GDP ( PPP$ Billions)  26
Weakening
Export %age GDP 135
Foreign market size index  59

47. Pillar 11 Business Sophistication
Improvements 
Control of international distribution  60
Production process sophistication  77
Nature of competitive advantage  85
Willingness to delegate Authority 114
Weakening
Local supplier quality 111
Extent of marketing 114
Local supplier quantity 102
State of Cluster Development  76
Value Chain Breadth  77

48. Pillar 12 Innovation Improvements 2015-16  2016-17 Weakening
Company Spending on R&D  67
Govt. Procurement of Advanced Tech Products  33
University Industry Collaboration in R&D  68
Capacity for Innovation  95
Quality of Scientific Research Institutions  87
Weakening
Availability of Scientists and Engineers  66
PCT patents, application/million pop  111

49. Thank you!