US Conservative Think Tank Increases Pakistan’s Economic Freedom Rating
Pakistan is now the 131st most free economy out of 186 in the world according to the Heritage Foundation’s report released this weekend. The Foundation’s Economic Freedom Index for 2019 gave Pakistan as score of 55 on a scale from 0 to 100 – reflecting a 0.6-point increase from before.
According to the report, in Pakistan’s case, “some aspects of economic freedom have advanced modestly in Pakistan in recent years, decades of internal political disputes and low levels of foreign investment have led to erratic growth and underdevelopment.”
The Heritage Foundation is a conservative think tank whose ideas are described as having greatly influenced US President Donald Trump’s administration. Economic freedom, for the Heritage Foundation, consists of the ability to do business unimpeded by state intervention.
It traditionally advocates low taxes and pro-business fiscal policies. The Foundation is also generally hostile to social welfare spending to assist poor citizens.
In compiling its report, the Foundation considers factors such as the rule of law, government size, regulatory efficiency and access to the open market.