Business Indicators

With an overall score of 5.82/12, Pakistan is progressing toward standard on the economic, legal, and political indicators that make up our Business Index. Pakistan is a market-based, mixed economy. According to the 2008 Heritage Foundation Index of Economic Freedom Index, Pakistan's government spending, which include the figures for consumption and transfer payments, is low. As a percentage of GDP, government spending totaled 18.2%. Pakistan encourages foreign investment and provides significant tax incentives in certain sectors. However, a few formal restrictions on foreign investment impede investment. Although property rights are protected by law, the legal system functions poorly. Corruption is extensive, as reflected by its ranking of 134th out of 180 countries in Transparency International's Corruption Perceptions Index.