1. Arthur Bayhan Chief Executive Officer Competitiveness Support Fund (CSF) INITIATIVE TO UPGRADE COMPETITIVENESS OF PAKISTAN’S ECONOMY

2. Competitiveness Support Fund – Pakistan 2 World Economic Forum - Global Competitiveness Report (GCR) Improving Pakistan’s 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 Sustained Economic Growth Poverty Reduction Improved Competitiveness

3. Competitiveness Support Fund – Pakistan 3 World Economic Forum - Global Competitiveness Report (GCR) Improving Pakistan’s Competitiveness The World Economic Forum’s Global Competitiveness Report Is the Most Influential Ranking of Country Competitiveness and 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 Sustained Economic Growth Poverty Reduction Improved Competitiveness

4. Competitiveness Support Fund – Pakistan 4 FINLAND - 2 PAKISTAN - 91 China - 54 TURKEY - 59 S. KOREA 24 THAILAND - 35 S. Africa - 45 JORDAN - 52 India - 43 KAZAKHSTAN - 56 USA - 6 World Competitiveness Ranking 2006 (Total 125 Countries)

5. Competitiveness Support Fund – Pakistan 5 Institutions= 79 Infrastructure = 67 Macro economy = 86 Market efficiency = 54 Technological readiness = 89 Innovation =60 Business sophistication = 66 Education = 104 Global Competitiveness Index Components for 2006: Pakistan

6. Competitiveness Support Fund – Pakistan 6 Global Competitiveness Index Components for 2006: Pakistan, India, Thailand Institutions= 793440 Infrastructure = 676238 Macro economy = 863188 Market efficiency = 542131 Technological readiness = 895548 Innovation = 602633 Business sophistication = 662540 Education = 1044942

7. Competitiveness Support Fund – Pakistan 7 Global Competitiveness Index (GCI) Global Competitiveness Report Has Two Indices Pakistan ranked 67 th on the Business Competitiveness Index of Michael Porter Pakistan ranked 91 st on the Global Competitiveness Index up from 94 th place in 2005 Lower rankings on the GCI reflect inclusion of low health and education indicators Rank 2006 2005 Business Competitiveness Index (BCI) Rank Source: World Economic Forum, Global Competitiveness Report, 2006-2007 0 20 40 60 80 100 120 IndiaChinaSri LankaPakistanBangladesh 31 27 64 57 65 72 67 0 20 40 60 80 100 120 IndiaChinaSri LankaPakistanBangladesh 108 100 43 45 54 48 79 80 91 94 99 98

8. Competitiveness Support Fund – Pakistan 8 CSF Action Plan to Improve Pakistan Ranking on Global Competitiveness Index Pakistan Can Improve by 6-8 Rankings Per Year Rankings Can Improve to 60-65 by 2010 20062007200820092010 YEARS RANKING 91 84 77 70 63 27% 33% 38% 44% 50%

9. Competitiveness Support Fund – Pakistan 9 CSF Action Plan to Improve Global Competitiveness Index Rankings Improving Pakistan’s Competitiveness CSF Action Plan: Next Steps 1. 1.Promote Broad Understanding and Support for Government’s Economic Reform Agenda Provincial Government Leadership Workshops Presentations on Competitiveness to Business Leaders Orientations for Local and International Press 2. 2.Communicate Priorities to Relevant Ministries and Institutions and Ensure Timely Provision of Data to International Sources 3. 3.Ensure Accurate Implementation of Executive Opinion Survey for Next Global Competitiveness Report – March 2007 4. 4.Focus CSF Activities on High Impact Areas

10. Competitiveness Support Fund – Pakistan 10 Competitiveness Support Fund Technical Assistance: Sectoral and Regulatory Matching Grants: Cluster Development Business Incubators/ Venture Capital Operational Windows of the CSF

11. Competitiveness Support Fund – Pakistan 11 1.Prepare and publish First Annual State of Pakistan’s Competitiveness Report 2.Carry out Competitiveness Analyses to Recommend Specific Actions with High Potential Impact Beginning with: –Motorcycle industry –Food processing sector –Fishery –Automotive industry –Gender contribution to economic growth 3.Increase Public Awareness of Innovation and Competitiveness by Better Preparing Journalists in Cooperation with Stanford University Innovation Journalism Fellowship Program Technical Assistance Window

12. Competitiveness Support Fund – Pakistan 12 HEC: Commercialize Research for Knowledge-based Enterprise Development PARC: Agribusiness Government of Sindh: Cluster Development World Economic Forum CSF Has Signed MOUs for Cooperation With: CSF PARTNER ORGANISATIONS

13. Competitiveness Support Fund – Pakistan 13 Main Criteria: –High potential to generate jobs, income, exports and investments –High potential to improve quality of products and services –Benefits a “cluster” of firms in an economic sector Amounts: US$20,000-US$125,000 (catalytic investments triggering large potential impacts) Co-Financing Requirement: 50% Participants: Private Sector, Government and Academia: “Triple Helix” Matching Grant Window

14. Competitiveness Support Fund – Pakistan 14 CSF Uses the "Triple Helix” Approach CSF Uses the “Triple Helix” Approach Matching Grant Window

15. Competitiveness Support Fund – Pakistan 15 Commercialize applied research and link private sector with university research – 20% private industry, 30% HEC and 50% CSF Promote knowledge-based enterprise sector by facilitating international patent registrations from Pakistanis and Pakistani institutions Organize for first time trade fairs highlighting science and technology-based projects developed at universities to attract private-sector investors looking for innovative products and systems to commercialize CSF-HEC Joint Initiatives

16. Competitiveness Support Fund – Pakistan 16 Incubator Set-up Business Incubator Window Concept

17. Competitiveness Support Fund – Pakistan 17 Business Incubator Window: Operations