dr.umer
SENIOR MEMBER
- Joined
- Jul 11, 2008
- Messages
- 1,460
- Reaction score
- 0
12 Dec 2008
ISLAMABAD: Pakistan has been ranked 34 out of 52 countries in the World Economic Forum's first Financial Development Report, which was released in Pakistan through the Competitiveness Support Fund (CSF) Thursday.
The report is a comprehensive analysis of financial systems and capital markets in 52 countries that explores key drivers of financial system development and economic growth in developing and developed countries and serves as a tool by which countries can benchmark themselves and establish priorities for financial system improvement.
Arthur Bayhan, Chief Executive of the Competitiveness Support, said: "I am very happy to see that financial system in Pakistan is well reformed and competitive vis-à-vis Asia and Europe. Pakistan is ranked ahead of the Russian Federation (35), Indonesia (38), Turkey (39), Poland (41), Brazil (40), Philippines (48) and Kazakhstan (45)."
The United States narrowly edged the United Kingdom to take the top position in the Financial Development Index. The United Kingdom was second while China ranked 24 and India 31.
The rankings are based on over 120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors, in assessing the complex financial systems of the 52 countries studied.
An important and unique measure captured by the Index includes the degree to which businesses feel they can easily access capital. The Financial Development Index is based on three main pillars - Factors, Policies and Institutions, Financial Intermediation and Capital Availability and Access. These are further divided into sub - pillars.
Pakistan ranks 49th in institutional environment, 50th in business environment and 37th in Financial Stability. In the Financial Intermediation Pillar Pakistan ranks 25th in banks, 42nd in non-banks and 17th in financial markets. Under Capital Availability and Access, Pakistan ranks 33.
Indicators showed that in business environment Pakistan had development advantage in cost to export, ranking 6th. In Financial Stability Change in Real Effective Exchange rate Pakistan is at 20th, External debt to GDP 10th, Frequency of banking crises 1st, stability index 15th. In corporate governance Pakistan ranked at the very top in shareholder rights index, 14th in strength of investor protection. In the Non-banks pillar, Pakistan ranked 9th in the real growth of direct insurance premiums. In equity market movement Pakistan ranked at the top again. staff report
