The World Economic Forum recognized the economic achievements of the Government of Pakistan in the latest Global Competitiveness Report.
Pakistan ranked 66th on the Business Competitiveness Index which shows the market efficiency. On the Global Competitiveness Index that includes governance, health and education in the 2006-2007 Global Competitiveness Report Pakistan ranked 91st out of 125 countries.
Speaking on the occasion, Prime Minister said that competitiveness is the cornerstone of economic growth which generates more
Competitiveness employment and reduces poverty. Prof. Michael Porter, Harvard's expert on competitiveness and engineer of one of the Business Competitiveness Index, commented on the country's achievements, "Pakistan also shows impressive movement in some of the most dynamic indicators on the Business Competitiveness Index which bodes well for future economic growth."
Dr. Salman Shah noted that the Competitiveness Support Fund seeks to finance practical initiatives to reposition Pakistan's economy regionally and globally and set it on a more competitive footing. The result will be higher productivity, increased innovation, and an economy that is integrated into global value chains and can compete internationally.
The Report will serve as an important benchmark against which to measure change in the future.
The Competitiveness Support Fund (CSF) is an independent body established to reposition the Pakistan economy on a more competitive global footing. It is a joint initiative of the Ministry of Finance and the United States Agency for International Development (USAID). USAID has contributed nearly US$12 million to the Fund for the initial three years, and the Government of Pakistan will match contributions made to the fund.
A recent study identified a gap in Pakistan's efforts to become more competitive: it lacks a vehicle to finance and promote innovation. The CSF is designed to address this gap. Similar funds have previously been established in other developing countries like India, Thailand. Turkey, Ireland and Finland to make the private sector more competitive and to improve the policy framework needed for innovation based competitiveness. The CSF has been benchmarked against these funds, structured according to the international best practices developed from their successes and tailored to the current Pakistani economic environment.
The effectiveness of the CSF requires the involvement of academia, government and the private sector. The CSF is offering assistance to the private sector through the following instruments:
1. Technical Assistance:
CSF will support Pakistan's goal of a more competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country.
2. Matchmaking Grants:
The preliminary purpose of the matchmaking facility is to support investment projects
that showcase innovation and upgrade economic competitiveness. Eligible applicants include industry associations and other bodies that represent the collective interests of a number of firms in the industry sector, universities and industry-related research and training institutes.
3. Venture Capital (VC)/Business
Incubators: The Government of Pakistan, through the Ministry of Finance, will be the primary sponsor of the venture capital/business incubator facility. The goal of the VC/incubator facility is to develop the knowledge-based enterprise sector by helping entrepreneurs implement their ideas by turning them into exportable commercial products and forming productive business ventures in Pakistan.
The CSF will also act as a bridge between local and foreign universities and research institutions, particularly those in the US and Europe, so that the best international practices in promoting innovation and in addressing the workforce and technology development needs of local industry can be conveyed.
