ISLAMABAD: Pakistan lacks economic freedom, Pakistan is ranked 147th out of 184 countries in the Index of Economic Freedom, and Pakistan’s economy is the worst in the Heritage Index of Economic Freedom released in 2023 with a score of 49.5. Below is the category of backward economy.
Various parameters have been established to define economic freedom, including size of government, legal and inheritance rights, strong currency, freedom of international trade and business rules and regulations. These include property rights, government strength, effective justice system, tax burden, government spending, fiscal health, business freedom, labor freedom, monetary freedom, trade freedom, investment and financing freedom.
Excessive government spending, debt and the effects of debt limit economic freedom, the vast public sector undermines the freedom of the private sector, and risks bankruptcy, and threatens national security. .
The government should introduce a simple and integrated tax policy to enable economic freedom in the country, declare bankruptcy of all government-owned enterprises which are continuously running at loss, immediate privatization of profit-making government enterprises. , Reforms in the Planning Commission, Income Support Program and Power Subsidies should be transferred to the provinces, corporate subsidies and concessions should be abolished, government expenditure should be reduced for economic freedom and government should focus on reducing the size of the government instead of increasing taxes.
