The World Economic Forum lists a weakening judiciary as one of the issues holding back economic reform in Pakistan. (Photo: Pakistan Today)
In Pakistan, the process of economic reforms has been painfully slow – a fact underlined by stalled or slipping progress on several international indices. On the World Bank’s 2015 Doing Business, Pakistan fell from 107th out of 185 countries to 128th. The World Economic Forum’s Global Competitiveness Index brought Pakistan down to 129th in 2014-15 from 124th in 2012-13. And the Fraser’s Institute report kept Pakistan at 124th out of 167 countries — the same spot it earned in 2013.
The World Economic Forum published its Global Competitiveness report this week, showing similarly weak progress. Three large South Asia Countries were ranked – India at 55th, Bangladesh at 107th and Pakistan at 126th. As compared to the last report, India jumped 16 places, Bangladesh by 5 and Pakistan slipped by one.
Pakistan collects far less tax (as a percentage of GDP) than most countries. So far the PML(N) government has not been able to significantly increase the tax ratio. (Chart: Dawn)
The Pakistan Muslim League (Nawaz) (PML (N)) government is completing its second year in power on May 11, 2015. It is astonishing to observe that the accountability process for democratically elected government has improved significantly.
Under a CIPE grant, the first such public accountability process was initiated by Policy Research Institute for Market Economy (PRIME), an independent think tank based in Islamabad. PRIME started a simple exercise by taking concrete promises from PMLN’s economic platform and, through a scientifically designed scoring process, monitoring the government’s performance under three key sections: Economic Revival, Energy Security, and Social Protection. These sections were further divided into 82 sub-categories.
The report is widely accepted as an unbiased measure of the government’s performance. The report received significant coverage in local media, both print and television. PRIME Executive Director Ali Salman suggests that “IMF Staff Mission assessment of Pakistan’s economic situation and reforms have many agreements with PRIME’s Tracking Report.”
The accountability process has recently moved to the next level, as the government’s Standing Committee on Finance publically accused the PML (N) government of making decisions on taxation measures in isolation, without taking the Standing Committee in confidence.
A recent World Bank report suggests that the country will not meet the Millennium Development Goals of universal primary education by 2015. The report ranks Pakistan 113th out of 120 countries in the “Education for All Index.” With seven million out-of-school kids, the challenge is snowballing with each passing year.
“The recent workshop by CIPE on the 19th of May 2014 in Port Moresby in Papua New Guinea is important as firstly puts our vision into action but most importantly it gave a boost for those women to take a bold step towards starting a business or “enterprise”. The women learnt how to transform their ideas or hobbies into a business. They learnt the importance of innovation, implementation, ability to market products and to understand numbers in a business environment. The breakaway discussions and activities were not only fun but useful in emphasis important business skills like to know how to negotiate pricing in a business time management and knowing specifications before you start dealing with suppliers. So many positive feedback from the participants. Can’t wait for the next one.” – Janet Sios, Interim Vice President PNGWCCI
CIPE is working with a newly established women’s chamber of commerce in Papua New Guinea (PNG) to become a strong voice of women-owned businesses a country that is known for its unequal treatment of women.
According to the World Bank’s Doing Business 2014 report, PNG is getting worse in areas such as Starting a Business (101st in the world, down 9 places from 2013) and Getting Credit at 86th in the world (down 4 spots from 2013). In such an environment, it is extremely challenging for women to start an entrepreneurial initiative. This forces many women to remain in the informal sector.
During the course of recent capacity building sessions held in May 2014, CIPE organized a workshop for Papua New Guinea Women Chamber of Commerce members titled “Starting Your Own Enterprise.” CIPE Deputy Country Director for Pakistan, Hammad Siddiqui led the session that covered basic concepts of starting a business, challenges for small businesses, analyzing market opportunities, etc.
In 2013, Pakistan experienced its first peaceful transition between two elected, democratic governments. In another first, several parties, including the winning PML-N, produced a concrete manifesto outlining their planned economic policies. But citizens have no mechanism to regularly track what governments are doing towards achieving their election promises.
With CIPE support, the Policy Research Institute of Market Economy (PRIME), an independent economic think tank, has been monitoring progress on the government’s economic manifesto via a carefully designed scorecard. The results show that while the new government has made some progress, implementation of its election promises remains slow.