Pakistan One of the Least Reliable Countries for Businesses: Report

FM Global recently released their report on the Resilience Index, which ranks countries according to their resilience in the business sphere. Pakistan ranks 117th on this index, while India is not far ahead and is ranked 107th out of the 130 countries included in the index.

When branching out, a company or a business owner needs to consider various factors before entering an international market. Factors such as national stability and assessment of building facilities in a new area, learning about international suppliers, etc. These are some of the factors that are used to determine a country’s resilience rating on the index.

About FM Global

FM Global is a company that has been rating countries for the past three years on the basis of economic stability assessed by GDP per capita, political risk and oil intensity (how vulnerable a country is to fluctuations in oil prices and supply). Risk (for the investors and businesses there) is assessed by how frequently a country faces natural disasters and by the quality of its natural hazard and fire management. The quality of supply chains depends on quality of the local suppliers, the infrastructure quality and how well a country controls them, in addition to managing corruption.


The Countries in the Resilience Index

The number 1 country in their list was Switzerland which moved up a spot replacing Norway which was at the top in 2015. Venezuela is at the bottom, retaining its position as the least resilient country in terms of business. They’re in a high earthquake frequency zone and and a wind zone. They have also been dealing with high amounts of corruption, something that Pakistan is also facing.


Terrorism is also a factor used to rank countries with FM Global specifically pointing at Pakistan, Belgium, Nigeria, Turkey and France that might rise or fall further depending on it.

What This Means for Pakistan

This index is what majority of businesses and companies consult when considering expansion into foreign markets. Compared to neighboring countries like China and Sri Lanka, companies are very unlikely to consider Pakistan given the resilience index here.

More companies mean lesser unemployment, better economy and general well being of the country. Ranked 13th to last, Pakistan does not provide an opportunity worth considering for those businesses to look into which are undergoing expansion. 

This should serve as a wakeup call for the government that is currently involved in saving its own fortunes after disclosure of Panama Papers. While a lot is being done to make our country more attractive to investors, Pakistan is still ranked one of the worst (126th) according to economic conditions.

A techie, Overwatch and Street Fighter enthusiast, and Sub Editor at ProPakistani.