Country Overview
Pakistan is the most improved country in the activity driver in InfraCompass 2020, increasing its ranking by 45 since InfraCompass 2017. This is driven by an increase in private infrastructure investment as a percentage of GDP over the last five years and investments under The Belt and Road Initiative and will help address Pakistan’s large infrastructure gap. The key to improving infrastructure investment in Pakistan is to reduce political instability, improve permit processes for registering property and grow its GDP per capita. However, the impact of the COVID-19 pandemic presents a key challenge for Pakistan’s ability to deliver future infrastructure projects and growth.
See Full Overview Data
GDP per capita
1,388 USD
Population
204.7 million persons
Infrastructure quality
55.6 (0-100 best)
Infrastructure investment
3.4% of GDP
Private infrastructure investment
2,061 5-year average, USD millions
Infrastructure gap
1.1% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

41
1
52.6
Contender
54
7
53.5
Aspiring
63
1
47.7
Aspiring
19
2
95.0
Top performer
61
13
59.7
Aspiring
13
45
51.7
Global Leader
74
-
17.0
Emerging
59
4
25.2
Aspiring

Metric Overview

Strengths

Cost to start a business

According to the World Bank, the cost to start a business in Pakistan is 6.9% of income per capita, well below the Lower Middle Income Countries average of 17%. Low start-up costs ease the entry of new firms.

Financial stability

Pakistan’s financial stability is satisfactory and in line with other Lower Middle Income countries.Pakistan has a strong Capital Adequacy Ratio well above minimum regulated level and high liquidity in funds, which can improve the supply of capital for infrastructure.

Private infrastructure investment

Pakistan needs to maintain the flow of private capital into infrastructure projects, particularly given the long-term impacts of the COVID-19 pandemic are yet to be determined. Increasing private infrastructure investment can bring greater cost discipline, innovation and value to money.

Cost to start a business

According to the World Bank, the cost to start a business in Pakistan is 6.9% of income per capita, well below the Lower Middle Income Countries average of 17%. Low start-up costs ease the entry of new firms.

Financial stability

Pakistan’s financial stability is satisfactory and in line with other Lower Middle Income countries.Pakistan has a strong Capital Adequacy Ratio well above minimum regulated level and high liquidity in funds, which can improve the supply of capital for infrastructure.

Private infrastructure investment

Pakistan needs to maintain the flow of private capital into infrastructure projects, particularly given the long-term impacts of the COVID-19 pandemic are yet to be determined. Increasing private infrastructure investment can bring greater cost discipline, innovation and value to money.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Lower middle income country average

Financial markets:
Financial stability

Opportunities to Grow

Registering property

According to the World Bank, it takes an average of 105 days to register a property. In 2019, Pakistan improved the process of registering a property by increasing the transparency of the land administration system, which is expected to improve this score over the foreseeable future.

GDP per capita

Pakistan’s GDP per capita was USD 1,388 in 2019, growing at a long term rate of 3.7%. Pakistan’s funding capacity for major infrastructure spending is limited by its low GDP per capita and this could be further impacted by the COVID-19 pandemic.

Political stability and absence of violence score

Pakistan has the lowest level of political stability among all InfraCompass 2020 countries. Government instability impedes governance and economic reforms, and can deter investors from committing capital to long-term infrastructure projects.

Registering property

According to the World Bank, it takes an average of 105 days to register a property. In 2019, Pakistan improved the process of registering a property by increasing the transparency of the land administration system, which is expected to improve this score over the foreseeable future.

GDP per capita

Pakistan’s GDP per capita was USD 1,388 in 2019, growing at a long term rate of 3.7%. Pakistan’s funding capacity for major infrastructure spending is limited by its low GDP per capita and this could be further impacted by the COVID-19 pandemic.

Political stability and absence of violence score

Pakistan has the lowest level of political stability among all InfraCompass 2020 countries. Government instability impedes governance and economic reforms, and can deter investors from committing capital to long-term infrastructure projects.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Lower middle income country average

Funding capacity:
GDP per capita

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Pakistan

Lower middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

41.7 (-0.2)
31.4

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

36.5 (+2.6)
41.5

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

56.7
34.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

12.2 (+3.6)
38.7

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Pakistan

Lower middle Income Countries Average

41.7 (-0.2)
31.4
36.5 (+2.6)
41.5
Yes
-
56.7
34.2
12.2 (+3.6)
38.7
Yes
-

Country Overview Data

Pakistan is the most improved country in the activity driver in InfraCompass 2020, increasing its ranking by 45 since InfraCompass 2017. This is driven by an increase in private infrastructure investment as a percentage of GDP over the last five years and investments under The Belt and Road Initiative and will help address Pakistan’s large infrastructure gap. The key to improving infrastructure investment in Pakistan is to reduce political instability, improve permit processes for registering property and grow its GDP per capita. However, the impact of the COVID-19 pandemic presents a key challenge for Pakistan’s ability to deliver future infrastructure projects and growth.
GDP per capita

1,388 USD

Population

204.7 million persons

Infrastructure quality

55.6 (0-100 best)

Infrastructure investment

3.4% of GDP

Private infrastructure investment

2,061 5-year average, USD millions

Infrastructure gap

1.1% of GDP

GDP

284.2 USD billion

GDP growth rate

3.3%

GDP per capita growth rate

-11.3%

Gini coefficient

33.5 (0-100 worst)

Gross Government Debt

77.0% of GDP

Inflation rate

7.3%

Summary credit rating

25.0 (0-100 best)

Unemployment rate

3.0%

Urbanisation ratio

37.0% of total population

Road connectivity

80.2 (0-100 best)

Quality of road infrastructure

4.0 (1-7 best)

Efficiency of train services

3.8 (1-7 best)

Efficiency of air transport services

4.2 (1-7 best)

Efficiency of seaport services

4.1 (1-7 best)

Electricity access

73.6% of population

Electricity supply quality

15.6% of output lost

Exposure to unsafe drinking water

71.7% of population

Reliability of water supply

4.0 (1-7 best)

Digital Adoption Index

0.4 (0-1 best)

Mobile-broadband subscriptions

29.2 per 100 population

Fixed-broadband Internet subscriptions

0.9 per 100 population