Is the economy suffocating under red tape?

Pakistan ranked 136 out of 167 in the Legatum Prosperity Index 2023. In the Index, Pakistan ranked 96 in Investment Environment and 102 in Enterprise Conditions, indicating that investors face barriers to starting and scaling industries. Legatum places Pakistan at 129 on Economic Quality, reflecting low industrial productivity and limited export diversification - evidence that our manufacturing base still depends on low-value goods. These rankings are generally consistent with other such reports, and we hope that in future editions of the Index, the government's efforts are reflected in higher ranks. One of the key indicators of Pakistan's underperformance and low growth is low investment. Pakistan's investment-to-GDP ratio stood at 12.9% in 2024, compared to around 30% in India, Bangladesh and Vietnam. This is symptomatic of a deeper problem.