Knowledge Based Economy :

Need & Status in Pakistan

P R E S E N T E D B Y: F A C U LT Y A D V I S O R :

RIZWAN ASHRAF MADAM AFSHAN

PMS-08

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OUTLINES:
UNDERSTANDING KNOWLEDGE BASED ECONOMY

IMPORTANCE OF KNOWLEDGE BASED ECONOMY

EXAMPLE OF NATIONS THRIVING ON BASIS OF KNOWLEDGE ECONOMY

NEED & STATUS OF KNOWLEDGE ECONOMY IN PAKISTAN

RECOMMENDATIONS & CONCLUSION

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 Understanding Knowledge Economy

Knowledge-based economy is an economy in which the

production, distribution and use of knowledge is the main driver
of growth, wealth and employment

COOK,P., Industrial and Corporate Change, Volume 10, Issue 4, 1 December 2001, Pages 945974 3
BITTER REALITY.
Low skilled labour becomes
liability rather than asset for a
country
Bill Gates

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 FRAMEWORK OF KNOWLEDGE
ECONOMY
ECONOMIC INCENTIVES
EDUCATION & INFORMATION & INSTITUTIONAL
INNOVATION
TRAINING INFRASTRUCTURE REGIME SYSTEM
INFORMATION ENVIRONMENT
PRIMARY AND NETWORK OF UNIVERISTIES,
COMMUNICATION SUPPORTING FREE FLOW
SECONDARY THINK TANKS AND PRIVATE
TECHNOLOGY (ICT) OF KNOWLEDGE,
EDUCATION ENTERPRISES
INVESTMENT IN ICT,
VOCATIONAL AND ENCOURAGES (e.g. USA has 6500 think
TRAINING ENTERPRENEURSHIP. tanks, china has 2000,
HIGHER EDUCATION Pakistan less than a dozen)

LIFE LONG LEARENING

INSTITUTES

Technical Notes: Moving Toward Knowledge Economies: Learning From Asian Practices, Asian Development Bank, pg. 14, 2007.
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 How Knowledge Economy is Helpful for
Progress.
Develops link between industry and academia
Creates employment opportunities
Stops brain drain
Builds effective technology for exploration of untapped natural
resources
Increases literacy rates
Flourishes Information communication technology (ICT)

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 JOBS & REVENUE GENERATED BY KNOWLEDGE HUBS ACROSS THE
WORLD
JOBS (IN MILLIONS) REVENUE(TRILLION $)

5.4
3.3
AXIS TITLE

2.7
2

0.4
0.1
MASSACHUSETTS INSTITUTE OF TECHNOLOGY STANFORD UNIVERSITY TSINGHUA UNIVERSITY
AXIS TITLE

Book: Building Knowledge Based Economy in Pakistan: learning from best practices , IPRI, 2016. 7
 EXAMPLE Of SINGAPORES KNOWLEDGE
BASED ECONOMY
Total export volume 563 billion $
113 million $ Investment by ROCHE , in biomedical research
450 million $ investment in Robotics
3 universities in top 20 ranking of world universities
The country works to develop all related elements: finance and venture capital;
project management; technology transfer; skills; regulation; and so on.
collaboration between all parities of investment but central foundation is talent
pool

Source: Singapore budget report 2016 8

 Why Pakistan needs Knowledge Based
economy?
To make technology-intensive exports which are fast growing.
To make innovative and better quality products having high
competitiveness in global market.
To build human capital, by training youth which is 60% of its
population.

Amjad. R,Why Pakistan must break-into the knowledge economy,MPRA,2006. 9

 Why Pakistan needs Knowledge Based
economy?
No Pakistani university among top 600 universities of the world
Increasing budget deficit ( 23 billion $ exports, 43 billion $ export)
Achievement of vision 2025 plane needs Knowledge driven
economy

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 Status of Knowledge Economy in
Pakistan
Pakistans Knowledge Economy Index is 2.45 which is very low

Pakistan ranks 117/144 countries in knowledge economy

Very low number of technology parks e.g,

a)only 12 Software Technology Parks & out of these 7 are in Lahore

b) another software park is under construction at 47 acres in Islamabad .

Pakistan Software Export Board (http://www.pseb.org.pk/pseb-programs/it-parks)

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 20 YEARS "KNOWLEDGE ECONOMY INDEX"
OF PAKISTAN
3
2.78

2.5 2.45

2.12
1.98
2
KNOWLEDGE ECONOMY INDEX

1.5

0.5

0
1995 1997 2007 2015
YEARS

Source: World Bank data on Knowledge Economy Index 12

 KNOWLEDGE ECONOMY INDEX 2015 OF FEW
CONTRIES KNOWLEDGE ECONOMY INDEX 2015
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6.94
7

5.96
6 5.84

5.33
5.16
5

3.91
4

3
2.45

0
United Arab Emirates Saudi Arabia Qatar Kuwait Turkey Iran Pakistan

United Arab Emirates Saudi Arabia Qatar Kuwait Turkey Iran Pakistan

Mohsen et al., International Journal of Applied Economic Studies, Vol. 3, Issue 2, 2015 13
 KNOWLEDGE ECONOMY INDEX AND RANKS OF
FEW CONTRIES OF LAST TWO DECADS
Rank KEI Rank RANK KEI Rank KEI
COUNTRY KEI 2007
2015 2015 2007 1997 1997 1995 1995
United Arab
42 6.94 42 6.17 48 6.85 36 6.97
Emirates
Oman 47 6.14 49 5.78 65 6.05 54 5.86
Saudi Arabia 50 5.96 52 5.58 76 6.01 57 5.71
Qatar 54 5.84 53 5.56 49 5.58 61 5.55
Kuwait 64 5.33 57 5.36 46 5.57 62 5.46
Turkey 69 5.16 62 5.19 62 5.42 63 5.38
Iran 94 3.91 87 3.63 95 4.29 87 4.68

Pakistan 117 2.45 114 1.89 122 2.12 123 2.78

Mohsen et al., International Journal of Applied Economic Studies, Vol. 3, Issue 2, 2015 14
INTIATIVES OF CURRENT GOVERMENT
Planning of state of the art Lahore Knowledge Park project worth 1billion
dollar which will produce
a) about 11200 PhDs
b) 40000 jobs
c)172 billion Rs. Revenue will be generated
Functionalization of Arfa Kareem Software Technology Park
Development of e-learning initiative of Punjab government in Public schools,
to make learning and monitoring process more effective.
Use of ICT in computerization of different departments

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 RECOMENDATIONS
Developing knowledge-based society for creation knowledge-based
economy.
Establishing university-industry link
Building Science and Technology Parks-----------(2/3rd of UNITED
STATES economy is from STPs)
Conducting Focused and agenda driven research.
Forming state of the art R & D departments.
Allocating more funds for research institutes ( PCSIR, PARC, PAEC etc.)

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CONCLUSION

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Questions??

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