Economic Freedom gives an individual the liberty to control his or her labour and property. Individuals have the right to work, produce, consume, and invest as they please. Thus, the index of economic freedom measures the capacity of an economy to practice free-market principles and liberty. The index covers twelve different areas of the economy, ranging from property rights to financial freedom across 184 countries.
The index measures the rule of law, which includes property rights, government integrity, and judicial effectiveness in carrying out economic and social justice. Government is an area that measures public sector spending, tax burden and fiscal health of the economy. The regulatory environment is also central to maintaining economic freedom, including freedom of business, trade, and investment.
Pakistan ranks 158 out of 184 on this index. Pakistan has made strides in some areas included in the index. However, performance in others has stagnated. The country needs to reform its current economic principles to increase economic freedom and liberty for its people.