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Bar Graph of Pakistan Economic Freedom Scores Over a Time Period
Quick Facts
  • Population:
      182.6 million
  • GDP (PPP):
      $575.0 billion 3.6% growth 2.9% 5-year compound annual growth $3,149 per capita
  • Unemployment:
  • Inflation (CPI):
  • FDI Inflow:
      $1.3 billion
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Pakistan’s economic freedom score is 55.6, making its economy the 121st freest in the 2015 Index. Its score has increased by 0.4 point since last year, reflecting improvements in investment freedom and freedom from corruption that are largely counterbalanced by deteriorations in labor freedom and business freedom. Pakistan is ranked 25th out of 42 countries in the Asia–Pacific region, and its overall score is below the world and regional averages.

Pakistan’s economic freedom has advanced modestly in recent years. Since 2011, economic freedom in Pakistan has increased by 0.5 point,

led by advances in investment freedom, monetary freedom, and freedom from corruption. However, gains have been outnumbered by losses among the 10 economic freedoms.

Large sections of the population live in poverty and survive through subsistence agriculture. Inefficient regulatory agencies inhibit business formation. Access to bank credit also undermines entrepreneurship, and the financial sector’s seclusion from the outside world has slowed innovation and growth.


Prime Minister Nawaz Sharif took office in June 2013 and has had to contend with terrorism, sectarian violence, and a well-organized insurgency along the border with Afghanistan. The army stepped up its military operations in North Waziristan in June 2014 following a major attack on the Karachi airport that killed nearly 36 people. Sustained street demonstrations in August and September 2014 led by Tehreek-e-Insaf party chief Imran Khan and religious leader Tahir ul-Qadri have weakened Sharif and increased civil–military tensions. Pakistan has privatized some state-run industries, but the economy is still heavily regulated, and poor security discourages foreign investment.

Category: Bank

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