Corruption most problematic for business in Pakistan: WEF

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Corruption most problematic for business in Pakistan: WEF

Dawn.com Published September 30, 2015

Pakistan jumped three spots to number 126 out of 140 economies on the World Economic Forum's (WEF) Global Competitiveness Index (GCI) for the year 2015-2016.

The country ranked 129 out of 144 economies during the previous year's ranking. This is the second consecutive year that Pakistan's ranking has risen.

The GCI is a comprehensive assessment of the competitiveness landscape of economies, providing insight into drivers of productivity and prosperity.

However, the previous year's report cited inadequate supply of infrastructure as the most problematic factor, followed by corruption, insufficient government bureaucracy, policy instability and access to financing.

Corruption was also considered the most problematic factor for dong business in Pakistan in 2013-2014.

Pakistan is placed at the factor driven stage of development. This is the lowest level of development along a three-stage spectrum of development which includes an efficiency driven stage at second place and an innovation driven stage ─ the most advanced stage.

Furthermore, a heatmap created by the WEF shows Pakistan placing amongst the 'worst' countries on the GCI. It is followed by Mali, Swazliand, Liberia, Madagascar, Haiti and Sierra Leone, among others.

The GCI scores out of seven Pakistan's competitiveness across 12 'pillars' or dimensions, of which Pakistan figures highest on Market size' with a score of 5 out of 7.

According to the WEF's Global Competitiveness Report 2015-2016, no South Asian Association for Regional Cooperation (Saarc) country featured in the top 50. India, however, is close at number 55, followed by Sri Lanka (68) and Nepal (100).

List of Saarc countries and their rankings:

India 55
Sri Lanka 68
Nepal 100
Bhutan 105
Bangladesh 107
Pakistan 126
Afghanistan (not featured)
Maldives (not featured)

Among all Saarc countries, Nepal is the greatest gainer since 2007, jumping 14 places during the period, while Pakistan is the greatest loser, falling 24 places.

Also read: IMF announces immediate disbursement of $504m to Pakistan

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Shams

Sep 30, 2015 03:27pm

Most of factors of GCI pertain to bureaucracy and government departments. Prime minister please call all federal secretaries and show them this global mirror

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Harmony-1

Sep 30, 2015 03:32pm

Our rulers are the best in corruption, now with proven record. Congratulations to them!

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irfan

Sep 30, 2015 03:33pm

The people ruling for the last 3 decades are responsible for mega corruption but who will make them accountable as they are the ruling elite, we appeal to army & other concerned institution for God sack eliminate corruption & Pakistan will become a tiger in Asia, Please rid this country of these corrupt thugs plz

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Dr.Arshad

Sep 30, 2015 03:39pm

Another gigantic task for Ge.Raheel Sharif, it's hoped he will wage another Zarb e Azb operation against corruption,nepotism and incompetence besetting this hapless society.

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Kashif Syed

Sep 30, 2015 03:40pm

Then on what basis does Nawaz Sharif claim that he has no corruption in his government? Pakistan has the lowest ranking in all of the featured SAARC nations. Extremely shameful.

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Irfan

Sep 30, 2015 03:44pm

The latest example of corruption is Euro Bond which is cumulated on above 8 percent, no where in the world Dollar or Euro has that high rate of interest, it is remain between 2 and 3 percent.

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pure ind

Sep 30, 2015 03:56pm

Its very strange as to why Pakistan dint grow the way it could, looking at all the advantages it had compared to India.. 1. Geographically smaller size leads to ease in planning, management & Governance. 2. Smaller population & mouths to feed. 3. Common religion as Islam & being an Islamic country, unlike India where every political party has a different agenda be it on caste, region or Religion. 4. Geographically & Politically closer to the oil rich gulf nations. After Independence many would have bet that a nation with more common factors like Pakistan would achieve lots of success & at faster rate than its culturally diverse neighbour!!

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Timeto stopthis

Sep 30, 2015 04:07pm

Apart from being corrupt, Pakistan is also the least competitive in the region, behind even countries like Sri Lanka, Nepal and Bangladesh. Time for people to wake up and see whats wrong with this country.

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irfan

Sep 30, 2015 04:08pm

I am sure the people still supporting these corrupt politicians will open there eyes Pakistan ranks 129 out of 140 in 2014-2015 & 133 in 2013-2014, if we look at this statistics this PML-N govt is amazingly more corrupt then previous PPP govt, what a shame we still say these corrupt experienced team will make Pakistan Asian Tiger, Nothing can be said... bravo PML-N & its supporters plz read it you .......

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Aziz bhoi

Sep 30, 2015 04:08pm

@Dr.Arshad I appreciate&strongly endorse your Analysis

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irfan

Sep 30, 2015 04:14pm

@Timeto stopthis nothing is wrong with this country sir, its the people who are ruling us they need to be changed rather need to be put behind bars where they belong

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Harmony-1

Sep 30, 2015 04:22pm

@Timeto stopthis - "Time for people to wake up and see whats wrong with this country." Thank you for telling us. We wouldn't have known otherwise!

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ilyas UK

Sep 30, 2015 04:30pm

MashaAllah, this is the result of democracy in Pakistan. What a sad place and the (sleepy) nation.."while Pakistan is the greatest loser, falling 24 places" . Shame on you all so called democracy savers..

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Saleem USA

Sep 30, 2015 04:53pm

PM NS and his brother SS are too busy minding their personal business ventures and the expense of Pakistan. No time for Pakistan.

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NAC Paris

Sep 30, 2015 05:00pm

Congratulation to both former PPP and current government of Nawaz. The analysis show how corrupt Pakistani leaders are. They have developed Dubai by pumping billions and finding a place to hide. Comparison versus the poorest and most messed up countries in Africa is shame for all Pakistanis.

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Iqbal Khan

Sep 30, 2015 05:05pm

How the pm business index flourishes. It needs determination to at least curb corruption expediently, but who will dare if the country's billionaires give tax in thousands how they have moral stand to ask others to be abide by law.

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Iqbal Khan

Sep 30, 2015 05:07pm

If three ranks high Pakistan gained may be because of the KPK government's struggle against this menace.

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sri

Sep 30, 2015 05:09pm

simple solution for govt..raise kashmir issue...all these will be forgotten..:)

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M Jamal

Sep 30, 2015 05:16pm

We cannot progress unless we root out corruption.All tall claims by the PMLN,PPP and PTI supporters are ridiculous.We must immediately make small administration provinces so that common people could manage their affairs,otherwise,these mega central corruption syndicates will ruin Pakistan.

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Bitter truth

Sep 30, 2015 05:29pm

@pure ind you're absolutely correct! Pakistan has all the physical ingredients for a success recipe but just like in cooking, more crucial than material elements, it's always the mentality of the nation that's paramount, which Pakistan lacks drastically.

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santosh

Sep 30, 2015 05:31pm

I think greatest gainer India due to previous year 71 and now 55.In one year 16 point

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anwar saeed USA

Sep 30, 2015 05:33pm

Nothing was new in this report except the ranking has changed a little. Corruption is spread in almost all Federal government departments, more or less Pakistan Customs is on the top of the list. Every department working in the Pakistan sea ports is involved in corruption. This is so unfortunate, but it is very true and no body care about it, because it is a part of their job. Nothing will move forward when not paid.

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pure ind

Sep 30, 2015 05:50pm

@Bitter truth honestly Pakistan lost focus mid way, it even today feels that Kashmir is the start & end of the world, Yes undoubtedly Kashmir is a major issue but it cannot be made the only issue, forgetting about education, & development for its people, For India to terrorism & Kashmir Corruption poverty are still an issue, but we never neglected but ensured parallel growth of our IITs IIMs, space & reseach programs IT growth.

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Cyrus

Sep 30, 2015 05:58pm

That number says it all.

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khan

Sep 30, 2015 06:04pm

what other data point is needed by our govt clean up this corruption menace top down investors confidence would jump exponential

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Rajeev Velagapudi

Sep 30, 2015 06:05pm

Well done Mr.Modi. Your actions are yielding results. I am sure by End of his 5 year term India will stand at 5th position compared to current 55th position.

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aamir

Sep 30, 2015 06:06pm

@Irfan I cannot say much about 8 percent rate of return on Pakistani Euro bonds, but no one will buy Pakistani govt. euro bonds at 2 or 3 percent that you are mentioning. That is because of the lack of credibility of Pakistani government and the risk of default (as calculated by the credit agencies). Pakistani govt will have to offer higher rate of return for investors to buy Pakistani issued dollar/euro bonds then say issued by US/German govt. Think about it, if you as international investor, are interested in buying $1 billion bonds, would you prefer ones issued and backed by the US Govt or ones issued by the Pakistani govt? Pakistani govt will have to offer higher rate of return to sweeten the deal so that some investor buys their bond.

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Syed Ahmed

Sep 30, 2015 06:09pm

Corruption is the root of all evil in Pakistan and unless this problem is sorted out shortly it's going to be curtains for Pakistan.

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M. Asghar

Sep 30, 2015 06:10pm

A country without a well-focussed vision of leadership is bound to drift into disorder and chaos as is now with Pakistan.

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Baba

Sep 30, 2015 06:17pm

Dont lose heart, Pakistan is still among the top 10 nations in nuclear weapons capability and set to rise even higher.

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Shahid

Sep 30, 2015 06:20pm

And still all the politicians and government functionaries would tell you that there is no corruption in Pakistan and when ever any scandal is unearthed it is called politically motivated exercise .I think in addition to corruption other main factor hindering business in Pakistan is hypocrisy

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Khalid

Sep 30, 2015 06:25pm

Pakistan and Pakistanis are still living in dark ages. I know there is no comparison between Pakistan and India and I won't even talk about it but being behind Nepal, Bhutan, Bangladesh and Sri Lanka is nothing but shameful. Pakistan is ranked 126th!. What I really don't understand is what are we proud of?. What gives us Pakistanis the right to be so arrogant?.

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Naeem

Sep 30, 2015 06:26pm

The present government has proven to be corrupt interested in mega projects like metro bus so they can skip large amounts of money. There is little interest in education. An educated person is less likely to pay for corruption as he will know his rights.

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Cyrus

Sep 30, 2015 06:26pm

@Timeto stopthis ... Time for Pakistanis to respect each other. Mexicans do not respect the police. They come to the United States and do not respect our police.

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turbo

Sep 30, 2015 06:40pm

@Harmony-1 not only rulers my friend...our people too are corrupt!

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Syed M. Nazim

Sep 30, 2015 06:57pm

I don't agree with the analyses. Law and order and infrastructure are major factors beside corruption. Overseas citizens are first foreign investment in any country. Pakistanis are scared to visit their country less talk about investment.Every body knows about power shortage in the country, local industry is either closed down or working at lesser capacity. Because of power shortage electronic communication and software business is also suffering. There is shortage of water in the biggest industrial city Karachi.In spite of ideal location these factors are driving out investors.

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Burjor Rustomji

Sep 30, 2015 07:13pm

This is not only about corruption, it is a reflection of this nation as a whole, our values, our culture, our law and order, our accountability, our education system, our family system, our society, our religious interpretations, this is a very correct picture of Pakistan, what we really are, and not what we think we are.

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Sep 30, 2015 07:14pm

First enact law that no politician can leave country when they are out of power and make them accountable to their deeds when in power.

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Mohit

Sep 30, 2015 07:18pm

An eye opener for those who think NS is in any way, better than modi

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Gul

Sep 30, 2015 07:32pm

With this report out, our great Fed bureaucracy will feel that they are well on track. Perfect score, yet the shameless bureaucrats will never change and they alone are responsible for the plight of the country.

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Javed Iqbal

Sep 30, 2015 07:32pm

Are India, Thailand, Philippine, Indonesia, Columbia, Peru, Bangladesh void of corruption? Just enter an airport at any of these countries and facts will begin opening your eyes. The analysis is based on biased.

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anony

Sep 30, 2015 07:34pm

Pakistan will rise Inshallah.

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Karachite

Sep 30, 2015 07:37pm

Corruption, security issues, abusive-corrupt-inefficient tax-system and government is what hampers business in Pakistan. It is indeed sad as Pakistan is so underdeveloped. Only efficient and competitive business enterprise can help Pakistan develop quickly. Development in Pakistan seems like a distant dream.

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TANDi

Sep 30, 2015 07:43pm

Once CPEC is over, likely two things will happen. Pakistani Industries will flourish along the corridor or Chinese products will be dumped causing all industries closed down in Pakistan.

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Akhtar

Sep 30, 2015 08:11pm

The PM needs to take note. Pakistan can be a great country if corruption is rooted out. It has to start at the top for it to work.

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ISSAQ

Sep 30, 2015 08:20pm

People who are comparing india and pakistan on corruption index, i would like to emphasize on only one thing. You may or may not like Modi or Kejriwal but truth is they are honest to the core. Modi's prepoll promise of ' Na khaunga, na khaane dunga' is showing results. In delhi, Delhi Development Authority was once known to be the most corrupt govt entity in the world, has now become an efficient and corruption free. I have first hand experience of dealing with DDA both from pre-kejriwal and post-kejriwal times. To rid of corruption, we need hardcore honest leaders on top. Fortunately we indians have them in Modi and Kejriwal.

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nooru 52

Sep 30, 2015 08:25pm

This ranking is by GDP per captia And by GDP nominal India is on 10 and Pakistan is on 42.

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Ahmed

Sep 30, 2015 09:18pm

This is American and indian conspiracy against our peace loving country. Its all RAW agenda.

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citizen

Sep 30, 2015 09:34pm

High time our politicians wake up from slumber..Neighbour cornered 41 billion $ FDI in 2015 which has overtaken China and US. Where are we in FDI?

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M.Saeed

Sep 30, 2015 09:39pm

@pure ind : You are rightly surprised by Pakistan's drifting down despite all the plus points on its side. That was the reason when it grew at 23% annually till 1969. Its 5-year development plans were borrowed and adapted by the countries like Korea and Malaysia and developed very fast. But, divide and rule worked in Pakistan by the selfish feudal politicians and divided Pakistan back to the parochial wars. Then, we developed mega-corruption and terror to stop everything sensible.

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Dr.Arshad

Sep 30, 2015 09:56pm

@ Khalid ......Pakistanis are still better off if compared to the rest of south Asian nations. India is a home to 33% poorest people on this planet,majority of Indians suffer from malnutrition,around 800 million Indians live on less than 2 dollars a day, 60% don't have decent toilets so on and so forth. Indian friends must learn to differentiate b/w real India and corporate India. Taking pride on the achievements of capitalists is just like sheep adoring wolf!

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Shafi

Sep 30, 2015 10:13pm

@DAWN. I suppose you meant *Inefficient* government bureaucracy and not *insufficient* in the lines "The five most problematic factors for doing business in Pakistan during 2015-2016 cited by the report are corruption, tax rates, inflation, access to financing and insufficient government bureaucracy." We already have enough bureaucracy and can't complain about being insufficient. What we have is more than enough, please....

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watson

Sep 30, 2015 10:18pm

Pathetic state of affairs.I do not think the government gives a damn as they have taken no steps to improve the situation.

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Rahul

Sep 30, 2015 10:25pm

@Javed Iqbal "Are India, Thailand, Philippine, Indonesia, Columbia, Peru, Bangladesh void of corruption? Just enter an airport at any of these countries and facts will begin opening your eyes. The analysis is based on biased." Javed Iqbal having grown up in India during the 90's and having born the brunt of exacerbating corruption and red tapism I can safely say that India is a lot less corrupt today. Of course it's not completely devoid of corruption and it never will be but the fact that I can put my trust a lot more in the government say volumes. And you of our airports??? Well if you ever have the fortune of visiting India you'll see the difference between the Islamabad airport and the Delhi airport.

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Hammad

Sep 30, 2015 10:33pm

@Irfan: Try using google and develop an understanding of CDS

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sam shafi

Sep 30, 2015 10:51pm

Rulers reflect the ruled. Corruption at the top means the whole society is overall corrupt. Rulers do not descent from the sky - they are from the people of Pakistan. From the lowest chaprasi , police constable, rahri wala , milk wala to top officials all are involved in rishwat, dhoka, milawat, etc. That's the rule - there are exceptions but very small and insignificant to make a difference.

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parveez

Sep 30, 2015 11:14pm

Tell the government, lower the number the better it is for Pakistan. Nawaz government think high the number better for his bank balance

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shek

Sep 30, 2015 11:24pm

@Dr.Arshad Agree sir! There are major problems in our country and there is effort being done to uplift people from poverty, improved education. The point I am trying to make is just because pakistan is on bottom of list doesn't mean you come blazing guns against India. You introspect and fix those problems at home.

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Dr Sparta

Oct 01, 2015 12:00am

Politician cannot be corrupt until unless people are corrupt.

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Sher Khan

Oct 01, 2015 12:12am

Did you hear Mr. Rabbani, Chairman Senate, he was saying, why any department is arresting corrupt politicians?? Arrest Mr. Rabbani also for this statement and put him with Dr Aasim Hussain. Who so ever went to Jail to see another corrupt PPP ex minister, must go to jail, they all used officials transport, another crime.

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imran

Oct 01, 2015 03:29am

Lack of law makes way for corruption, we have no real law here and let me start by addressing the ruling Elite.....there is nothing Elite about stealing from your own country and people.

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anwar saeed USA

Oct 01, 2015 05:51am

Tell me something new & good about Pakistan.

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Azhar

Oct 01, 2015 05:55am

Pakistan could be the corrupt country and it's foundation has been completely damaged because of corruption. It used to be police and now it is the only way of life. The top in corruption are politicians.

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Azhar

Oct 01, 2015 05:57am

@Saleem USA They looted Pakistan, and they need more time.

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Azhar

Oct 01, 2015 05:58am

@irfan The source of all ills is corruption

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Khan

Oct 01, 2015 06:36am

@pure ind well said but for obvious reasons ie corruption mis management etc we simply fell behind and for this leadership is to be accountable

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rkn

Oct 01, 2015 07:15am

@Dr.Arshad If that really soothes you! But turning blind to issues of Pakistan is why Pak is in this state and getting worse. BTW, I doubt these numbers you quote, but again if that soothes you and gives comfort, so be it...

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Pixell

Oct 01, 2015 08:18am

The five most problematic factors for doing business in Pakistan during 2015-2016 cited by the report are corruption, tax rates, inflation, access to financing and insufficient government bureaucracy. Among all Saarc countries, Nepal is the greatest gainer since 2007, jumping 14 places during the period, while Pakistan is the greatest loser, falling 24 places. What a shame ? Can't Pakistan do its best for the sake of its people? A collective effort is needed. Bureaucracy, political leaders and citizens need to work together and get out of this mess.

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