Islamabad, May 18 - 'The Ministry of Science and Technology should formulate and implement a plan to improve the number of international patents filed by Pakistanis and Pakistani organizations. It should recommend ways to increase investment in R&D as a percentage of GDP-, this was stated by Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund. The Competitiveness Support Fund (CSF) delegation made a special presentation to the Ministry of Science and Technology here today. The CSF delegation comprised of Arthur Bayhan, CEO of the Competitiveness Support Fund, Abdul Basit, Joint Secretary, of the Prime Minister's Special Programme Wing, Ministry of Finance and Noor Aftab from the Board of Investment.

'The Ministry should also encourage practical linkages between industry and research institutes so that research investments result directly in increased productivity. In this way, the current low indicators regarding patents and R&D expenditure will improve-, said Bayhan.

The Prime Minister, Shaukat Aziz launched the State of Pakistan Competitiveness Report in March this year. The Prime Minister asked the CSF to bring all line- ministries and relevant institutions on board to improve Pakistan's ranking on the Global Competitiveness Report of the World Economic Forum. CSF's presentation to the Ministry of Science and Technology was to discuss the identified sectors where Pakistan is lacking behind and how Pakistan can improve its competitiveness. CSF has already briefed most of the line- ministries and meetings with the other ministries and relevant institutions will follow.

The meeting was chaired by Mr. Pervez Butt, Secretary Ministry of Science and Technology. Mr. Pervez Butt informed the CSF delegation that the ministry is playing a crucial role to improve the competitiveness of the country. He also appreciated the contributions of USAID Pakistan for its role in promoting science and technology and its role in economic growth. The secretary also told the CSF delegation that Pakistan needs indigenous industrialization rather then the imported industrialization. He further said that the ministry of science and technology would like to seek assistance from the CSF on its recent studies on the motorcycle industry and the food safety and standards. He told the delegation that CSF studies will help the Pakistan Standards and Quality Control Authority (PSQCA) in as case studies for capacity building purposes.

Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund, in his presentation briefed the ministry on the indicators affecting the Global Competitiveness Index (GCI) of the World Economic Forum. Bayhan informed the secretary and other senior officials of the ministry that the Ministry of Science and Technology has a key role to play in improving Pakistan's Global Competitiveness Rankings. He said that, 'Pakistan ranked well in most innovation-related categories. The highest ranking in this group was for the capacity for innovation. Pakistan stood 38th among 125 countries. The innovation indicators measures whether companies mostly produce through licensing or imitation or whether they are undertaking formal research and developing new products-.

The State of Pakistan's Competitiveness Report of the CSF and the Global Competitiveness Report (GCR) of the World Economic Forum (WEF) identified that Pakistan ranks well on government spending on R&D, where it was ranked at 47 and company spending on R&D, where it stood at 51, which boosts its score on capacity to innovate.

Mr. Pervez Butt informed the CSF delegation that the Ministry of Science and Technology would like to work closely with the CSF on the capacity building of research institutes through technical assistance and international linkages with other R&D institutions in the developed countries. He also requested the CSF to assist the ministry on improving Pakistan's competitiveness on the innovation pillar. 'We urge CSF to assist us in sending the updated data on the R&D in Pakistan to the international sources, as it is crucial to improve our competitiveness-, said Pervez Butt.

Pakistan showed solid improvement from last year's 94th place to 91st place this year on the Global Competitiveness Index (GCI). The GCI ranked 125 countries in this year's survey over 117 in the prior year. Pakistan's gain takes on added significance when compared to the drop in rankings experienced by many noteworthy emerging markets. In comparison to the other economies, GCI rankings dropped by 9 for Russia and Brazil, by 6 for China, by 2 for Thailand and by 1 for Malaysia. With its rise of two places over last year, regional competitor India failed to keep pace with Pakistan's improvements. CSF is working closely with the World Economic Forum, as its country partner institution, on the ranking of Pakistan as well as on identifying the areas to be improved and the methodologies that will bring about that improvement.

Competitiveness Support Fund (CSF) is a joint initiative of the Ministry of Finance, Government of Pakistan and the United States Agency for International Development (USAID). CSF Supports Pakistan's goal to be of a more competitiveness economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country. CSF also provides technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector-led initiatives with research institutes and universities that contribute to creating a knowledge-driven economy.

Support for CSF is part of the $1.5 billion in aid that the U.S. Government is providing to Pakistan over five years to improve economic growth, education, health, and governance.