Arthur Bayhan Chief Executive Officer Competitiveness Support Fund (CSF)

1. Arthur BayhanChief Executive OfficerCompetitiveness Support Fund (CSF) INITIATIVE TO UPGRADE COMPETITIVENESS OF PAKISTAN’S ECONOMY

2. Poverty Reduction Improved Competitiveness Sustained Economic Growth World Economic Forum - Global Competitiveness Report (GCR) Improving Pakistan’s Competitiveness Globalization is a reality that countries can no longer escape Competitiveness is the only way to benefit from globalization and not become a victim

3. Poverty Reduction Improved Competitiveness Sustained Economic Growth World Economic Forum - Global Competitiveness Report (GCR) Improving Pakistan’s Competitiveness The World Economic Forum’s Global Competitiveness Report Is the Most Influential Ranking of Country Competitiveness and Effects Pakistan’s Image in the World Among Business, Government and Financial Leaders Understanding and Monitoring the Rankings is Important Improved Competitiveness Leads to Sustained Economic Growth Which Has Proven to Be Effective in Poverty Reduction

4. World Competitiveness Ranking 2006(Total 125 Countries) FINLAND - 2 USA - 6 S. KOREA 24 THAILAND - 35 S. Africa - 45 JORDAN - 52 China - 54 India - 43 KAZAKHSTAN - 56 TURKEY - 59 PAKISTAN - 91

5. Institutions= 79 Infrastructure = 67 Macro economy = 86 Market efficiency = 54 Technological readiness = 89 Innovation = 60 Business sophistication = 66 Education = 104 Global Competitiveness IndexComponents for 2006: Pakistan

6. Institutions= 79 34 40 Infrastructure = 67 62 38 Macro economy = 86 31 88 Market efficiency = 54 21 31 Technological readiness = 89 55 48 Innovation = 60 26 33 Business sophistication = 66 25 40 Education = 104 49 42 Global Competitiveness IndexComponents for 2006: Pakistan, India, Thailand

7. 120 100 80 60 40 20 0 India China Sri Lanka Pakistan Bangladesh Global Competitiveness Report Has Two Indices Pakistan ranked 67th on the Business Competitiveness Index of Michael Porter Pakistan ranked 91st on the Global Competitiveness Index up from 94th place in 2005Lower rankings on the GCI reflect inclusion of low health and education indicators Global Competitiveness Index (GCI) Business Competitiveness Index (BCI) Rank Rank 120 108 100 99 98 100 94 91 80 79 80 72 65 67 67 64 57 60 54 48 45 43 40 31 27 20 0 India China Sri Lanka Pakistan Bangladesh 2006 2005 Source: World Economic Forum, Global Competitiveness Report, 2006-2007

8. CSF Action Plan to Improve Pakistan Ranking on Global Competitiveness Index Pakistan Can Improve by 6-8 Rankings Per Year Rankings Can Improve to 60-65 by 2010 63 70 77 50% 84 44% 91 RANKING 38% 33% 27% 2006 2007 2008 2009 2010 YEARS

9. CSF Action Plan to Improve Global Competitiveness Index Rankings Improving Pakistan’s Competitiveness • CSF Action Plan: Next Steps • Promote Broad Understanding and Support for Government’s Economic Reform Agenda • Provincial Government Leadership Workshops • Presentations on Competitiveness to Business Leaders • Orientations for Local and International Press • Communicate Priorities to Relevant Ministries and Institutions and Ensure Timely Provision of Data to International Sources • Ensure Accurate Implementation of Executive Opinion Survey for Next Global Competitiveness Report – March 2007 • Focus CSF Activities on High Impact Areas

10. Operational Windows of the CSF

11. Prepare and publish First Annual State of Pakistan’s Competitiveness Report Carry out Competitiveness Analyses to Recommend Specific Actions with High Potential Impact Beginning with: Motorcycle industry Food processing sector Fishery Automotive industry Gender contribution to economic growth Increase Public Awareness of Innovation and Competitiveness by Better Preparing Journalists in Cooperation with Stanford University Innovation Journalism Fellowship Program Technical Assistance Window

12. HEC: Commercialize Research for Knowledge-based Enterprise Development PARC: Agribusiness Government of Sindh: Cluster Development World Economic Forum CSF PARTNER ORGANISATIONS CSF Has Signed MOUs for Cooperation With:

13. Main Criteria: High potential to generate jobs, income, exports and investments High potential to improve quality of products and services Benefits a “cluster” of firms in an economic sector Amounts: US$20,000-US$125,000 (catalytic investments triggering large potential impacts) Co-Financing Requirement: 50% Participants: Private Sector, Government and Academia: “Triple Helix” Matching Grant Window

14. CSF Uses the “Triple Helix” Approach Matching Grant Window CSF Uses the "Triple Helix” Approach

15. Commercialize applied research and link private sector with university research 20% private industry, 30% HEC and 50% CSF Promote knowledge-based enterprise sector by facilitating international patent registrations from Pakistanis and Pakistani institutions Organize for first time trade fairs highlighting science and technology-based projects developed at universities to attract private-sector investors looking for innovative products and systems to commercialize CSF-HEC Joint Initiatives

16. Business Incubator Window Concept Incubator Set-up

17. Business Incubator Window: Operations